This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Can Silver Outperform Gold In 2013?

Added to the metal's positive demand outlook are expectations for healthy industrial consumption. In a recent interview with the South China Morning Post, Haywood Cheung Tak-hay, president of the Chinese Gold & Silver Exchange Society, pointed to strong economic growth in Asia, citing expectations that large amounts of silver will be used for mobile phones and other electronics by the likes of China, Japan and South Korea.

“Silver is now trading at a much lower level than its normal difference from gold. As such, we can predict silver will rise further this year,” Cheung said.

Support for silver

While demand for physical silver is set to remain strong, there is a ticking time bomb in the paper markets, according to Chris Powell and Bill Murphy, founders of the Gold Anti-Trust Action Committee.

In a recent Future Money Trends interview, they explain that the massive shorting of silver that JPMorgan Chase (NYSE:JPM) has caused in the derivatives market has created an incredible shortage situation.The silver price is going to go bonkers, said Murphy.

Though heavy liquidation has recently been seen in the silver futures market, there are some professional money managers who are not only betting on silver, but are also betting that it will outperform gold.

Given supportive macroeconomic fundamentals, Ian Williams, mixed asset fund manager at Charteris Treasury, has forecast a sustained bull market for silver that should drive its price to $165 an ounce by October 2015.

In a recent webcast, Jeffrey Gundlach, founder of DoubleLine Capital, reportedly revealed a contrarian position. He is bullish on gold even as many deep-pocketed investors are bailing on the metal. Gundlach expects gold prices to rise in tune with central bank balance sheets, but he prefers silver because it is offers a high beta. Gains for gold will therefore mean larger gains for bets placed on silver.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,751.39 +121.12 0.69%
S&P 500 2,108.57 +15.32 0.73%
NASDAQ 5,111.7330 +22.5270 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs