STAFF NEWS & ANALYSIS
The Case for Silver in 2016
By Daily Bell Staff - August 05, 2016

Forget Gold, Buy Silver ETFs Instead … Gold bullion exchange-traded fund SPDR Gold Shares ETF (NYSEARCA:GLD) is up over 27% so far this year (as of August 1, 2016).  Investors should note that not only gold, most precious metals are on a tear this year on a subdued greenback, as these metals are linked to the U.S. dollar. –Seeking Alpha

This article, excerpted above, makes the case for buying silver ETFs.

With the recent announcement of a quarter point easing by the Bank of England, most major economies are once more in a “loosening” mode.

Europe and Japan are pursuing various forms of quantitative easing and the Britain will join them in this as well.

In the US, the 3-4 rate cuts that Janet Yellen was contemplating for 2016 has turned into a single rate hike thus far – that took place in late 2015.

Central banks have cut so deeply at this point that a number of currencies are actually operating with negative interest rates.

Banks wish to charge customers for their services. Money is so plentiful that storing it has become a chore.

Within this context, both gold and silver continue to make progress against the dollar.

Unlike paper currencies, gold and silver cannot be manufactured at the push of a button. Meanwhile, central banks have printed something like US$50 trillion or more since 2008.

The world is awash in paper money.

More:

Notably, gold is trading at $1,356.40 to start August … Some analysts … expect the metal to hit $1,425 an ounce by the end of Q3 …

But this article suggests investors consider silver as well:

Like gold, silver also serves as a safe haven. So, with still shaky investor sentiments given lower-than-expected Q2 U.S. GDP growth, markets may turn edgy ahead and boost safe-haven metals like silver.

Investors should note that silver was a bit late in joining the precious metal party this year. So, due to its late entry into the rally, the bullishness in silver is likely to last longer than gold, according to some analysts.

After such a stupendous surge in the yellow metal, many investors would like to bet on its low-priced cousin. Also, many investors view silver as a leveraged play of gold, as per ETF Securities.

So, while you can play gold ETFs like GLD or the iShares Gold Trust ETF (NYSEARCA:IAU) with a short-term view, it might be better to tap silver ETFs.

… While GLD added about 0.6% in the last one-month time frame (as of August 1, 2016), the silver bullion fund iShares Silver Trust ETF (NYSEARCA:SLV) added about 3.7%.

The downside to ETFs, of course, is that they may not have the metal they claim backs their shares. Nonetheless, ETFs certainly offer a convenient alternative to purchasing the metal itself.

Another possibility when it comes to metals investing is purchasing shares in mining companies.

Mining companies may be more of a gamble than purchasing the metal itself of course.

If a mining company doesn’t strike gold or silver, then the shares of that company may be worthless even though the metal it seeks is increasingly valuable.

But if the mining company makes a decent strike, then the leverage may provide its shares value far in excess of the price of gold and silver.

The Daily Bell has a sponsor, Golden Arrow, with various promising mining properties. Among these is the Chinchillas project which hosts a resource of 100 million ounces of silver/155 million ounces silver equivalent (AgEq) in the Measured & Indicated categories and 44 million ounces silver /90 million ounces (AgEq) in the Inferred category.

The resource estimate is part of the Chinchillas Project prefeasibility study, funded by Silver Standard, which is being undertaken to evaluate the combination of Silver Standard’s producing Pirquitas mine and our Chinchillas deposit, as announced October 1st, 2015.

Those who wish to investigate silver mining properties may want to consider the Chinchillas project. You can see the Golden Arrow website HERE, which contains information on Chinchillas.

Golden Arrow Contact: Shawn: 1-800-901-0058 or 778-686-0135.

Stock Symbols:

Canada: GRG
US: GARWF
Frankfurt: GAC

GOLDEN ARROW RESOURCES is a sponsor of The Daily Bell under a new marketing program. The company welcomes your interest and support. Please consult DB’s disclaimer before making investment decisions. This is not an endorsement.

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  • Stan

    “In the US, the 3-4 rate cuts that Janet Yellen was contemplating for 2016 has turned into a single rate cut thus far – that took place in late 2015.”
    Ummm…wouldn’t that be a rate HIKE?

  • wilson

    Most ETF’s are not redeemable for actual metal. As well, the metal that is allegedly held is not well documented. Actual gold held by most finance institutions and possibly Central Banks has been rehypothecated. That means for every one real unit of metal, their exists over 100 claims on that very same metal. Who actually owns it?
    Not you in nearly all cases.

    Precious metal ETF’s were created to keep people in “precious metal instruments” and not actual deliverable precious metals. The price of gold is the most important barometer in finance. If people begin to buy actual physical gold in quantity and take delivery, it would collapse the fiat monetary system.

    If you “must” buy an ETF, try and buy one where you can stand for delivery. GLD and SLV are not such vehicles.

    Remember, the only metal you really own is the metal you can hold in your own hand.

    • Nigel

      I have seen the work done by GATA rather extensively on this. GLD only allows the few big custodians such as JP Morgan to take delivery but not retail investors. Physical ownership is best.

      • Thanks. Mining stocks, if successful, still provide the most leverage though.

        • Mclaughlin

          Do recall that Newmont Mining did not perform nearly as well a bullion during the 2009-2011 period. The same with Barrick Gold. They were two of the largest gold miners on earth.

          They are financial assets and not the same as gold or silver as they have debt and/or hedges in place (Barrick’s was forced to buy back their hedges (well underwater) at roughly $1,000/oz. Again, if your playing the markets (speculating) that’s one thing (and you had better know what you are doing speculating in mining stocks) but, if you are for long term insurance that of which is outside the “banking system” you should own some bullion.

          • larry martin

            My gold fund, like most gold mutual funds, has doubled since January.

    • YT

      Hi, here in Tokyo we buy Philharmonic coin from Austria. It is now getting very popular. Before this year it was not usual to buy actual coin for delivery.
      Our money policy has gotten us quite worried about savings.

  • perger

    Call with questions, we are also doing a Private Placement into our Uranium company Blue Sky Uranium BSK.v if you are interested give me call
    Shawn
    778-686-0135

  • philip

    Philip, DB Any reason for buying ETFs instead of bullion?

  • Gecko Research

    “Our #1 Pick For Silver Exposure, A 250 Million Ounces Eq. Deposit Ripe For Take-Over” http://seekingalpha.com/article/3981117-1-pick-silver-exposure-250-million-ounces-eq-deposit-ripe-take

  • James

    I would like everyone to know what I genius I am to have suddenly decided to buy a bunch of silver last December when the price bottomed out. As a genius I feel I should share my ingenuity with my friends at The Daily Bell and advise all the keep stacking silver until the price hits about $30 or so. Then lay off the buying and prepare to unload for some short term gains when it blows past $50 again. But don’t sell all of it, just enough to throw a really big party and maybe take a vacation.
    OK, I confess, I doubt that I’m really a genius, but I am a lucky lucky bastard, though, let me tell you.

    • Congrats.

      • James

        Thanks to Daily Bell especially, and others, I’m pretty smart now about how the world really works. By which I mean I realize how inadequate I am going up against the globalist money masters. I do feel very confident advising everyone to go long silver, gold, food, water, ammo, etc. up to a reasonable level before they put their capital at high risk. In my line of work I often have occasion to advise people about their finances and I tell them, hey, if you don’t want gold and silver then I’d tell you to buy a huge warehouse and store up all the basic supplies you’ll need for the rest of your life at today’s prices and you’ll probably come out pretty good. And we laugh. It’s a learning process.

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