Silver ETF Holdings Are Surging On Global Demand

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March 28, 2013 11:30am NYSE:AGQ NYSE:SIVR

silver demandSean Brodrick:You know I’m bullish on gold. But when it comes to silver, I’m even more bullish!


I think there are some very positive fundamentals for silver, which I’d like to share with you in just a moment.

However, I’m in very good company in my forecast for a bright future for silver, gold and other precious metals this year.

This coming Thursday, I’m hosting a special investing event with a well-known and -respected resource investment manager, and I hope you’ll be able to attend. I think it’s going to be full of surprises for investors who want to hold metals long term but make money now.

Read on for all the details …

According to data from CPM Group and Bloomberg, silver is outshining gold in Exchange-Traded Products (ETPs) as global demand for the white metal gets a boost from industrial consumption amid signs of an economic recovery.

Take a look at this Bloomberg chart of silver holdings over the past few months …

Holdings in silver ETPs rose 3.6% in the two months ended Feb. 28, reaching a record 19,699 metric tons on Jan. 18, data compiled by Bloomberg show.

Some more good news for silver …

We have to remember that silver is an industrial metal as well as a precious metal.

About 53% of silver is used in industrial products from televisions to batteries, according to the Silver Institute in Washington. We’ve seen industrial demand for silver drop for two years in a row as the global economy softened. Now, the economy is improving.

A recent study by Thomson Reuters forecasts that industrial use for silver will rise 7% this year to 484 million ounces and then another 6% to 511 million ounces next year, accounting for 57% of the world’s silver production.

That would be a new record high.

Then there is the mom-and-pop demand, which is also up.

Sales of American Eagle silver coins by the U.S. Mint jumped to a record in January and more than doubled in February (up 126%!) from a year earlier, the Mint’s website showed.

Finally …

China’s imports of silver surged 14% in January, the biggest monthly gain since July. Meanwhile, Peru’s silver production is expected to rise about 5% this year and 9% next year.

I could be wrong on the timing of silver. There are bearish forces, including a stubbornly strong U.S. dollar.

Even if silver breaks below the low it set earlier this month, there is solid support at $26. That’s not far away, and I expect bargain-hunters will pile in at that point.

My Red-Hot Global Resources subscribers are positioned nicely for an uptick in bullion prices through a junior gold-and-silver miner that’s up 18.9% since I recommended it just a couple of weeks ago.

But bullion prices don’t have to make a huge move for you to see big investing returns. Lots of strong mining companies with access to big metals deposits, many of which have been unfairly beaten down this year as the price of the metals have stagnated, are poised to soar.

I plan to show you how you can identify them — and even give you some names that are high atop my radar — next Thursday.

I’d like to invite you to join me for “Uncommon Wisdom’s Premier Gold Forecast for 2013” a special investing event I’m hosting next week on Thursday, April 4.

I will be joined by one of the premier precious metals investors in the country, Rick Rule.

If you don’t know Rick, he’s been an active investor in the gold and precious metals markets for over 35 years.

He currently operates as the chairman of one of the largest public investment firms in the world that focus exclusively on natural resources … with over $10 billion in assets under management!

In addition, Rick has been active in funding hundreds of gold exploration and mining projects …

I think it’s safe to say he has more insider knowledge on the gold and precious metals markets than any other expert out there today.

Simply put, no serious precious metals investor should miss this event. Simply click on this link and you’ll automatically receive all the details on how to attend what I expect will be an eye-opening discussion.

Related Tickers: iShares Silver Trust (NYSEARCA:SLV), ProShares Ultra Silver (NYSEARCA:AGQ), ProShares UltraShort Silver (NYSEARCA:ZSL), ETFS Physical Silver Trust (NYSEARCA:SIVR), Sprott Physical Silver Trust ETV (NYSEARCA:PSLV).

All the best,

Sean BrodrickWritten By Sean Brodrick From Money And Markets

Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss  along with Nilus Mattive, Claus Vogt, Ron Rowland, Michael Larson and  Bryan Rich. To avoid conflicts of interest, Weiss Research and its staff  do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not  guaranteed. Performance returns cited are derived from our best  estimates but must be considered hypothetical in as much as we do not  track the actual prices investors pay or receive. Regular contributors  and staff include Andrea Baumwald, John Burke, Marci Campbell, Selene  Ceballo, Amber Dakar, Maryellen Murphy, Jennifer Newman-Amos, Adam  Shafer, Julie Trudeau, Jill Umiker, Leslie Underwood and Michelle  Zausnig.

This investment news is brought to you by Money and MarketsMoney and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss  Research analysts offering the latest investing news and financial  insights for the stock market, including tips and advice on investing in  gold, energy and oil. Dr. Weiss is a leader in the fields of investing,  interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com/.


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