Despite The Recent Price Drop, A “Silver lining” for Silver

If you go read through my “precious metals investing” or “Dollar Doom” categories on my website www.navigatethezoo.com , you may find a lot of useful background info on my following premises. On that note, let us begin.

So silver climbs to around $50oz and then dive bombs 30% to around $35oz. Silver has been trading around $35oz for a few weeks now. This is actually the first piece of good news and I will show you why. Remember, 60% of silvers current value is for industrial use.

One industrial application that uses silver is touch screen devices. If you have been to Best Buy in the last 6 months, almost everything is touch screen now, and I think this market has a long way to go. Furthermore, the world in general is only going to continue to become more and more saturated with electronic goodies, most of which contain silver in their components.

I believe the $35oz range is where professional investors have determined silvers industrial demand driven price to be. Before you jump on me about the imploding dollar, realize that it’s a good thing to have more than one factor driving the price of your silver.

In addition, the world currencies are in a huge mess and I will be writing an article dealing with this soon, but for now you just need to know that the US dollar, euro, yen, yuan, and British pound sterling are all in deep trouble. You see, the game of loaning fake money to one another so we can all print more fake money is starting to unravel.

In the short term, don’t be surprised to see silver fluctuate a bit more than gold. Many big investors are still resisting silver as a safety play in their portfolio. As the world economy slows, it wouldn’t surprise me to see silver go down a bit more while gold goes up. This will be the result of silvers projected industrial use being reduced, while people flock to gold for safety. However, I am confident that the demand for physical silver across world markets by average folks will eventually start to place a greater emphasis on the monetary value of silver.

Update: My article, “If Silvers a bubble, why are vendors running out of bars”, was confirmed on CNBC last week. Precious metals vendors did not see a slow down despite the commodities paper market taking it on the chin.

www.navigatethezoo.com