In the longer term horizon both silver and gold should appreciate to counter the current race to the bottom in fiat currencies.SIN: Are we going to experience a traditional upward trending season (September-April) for silver, or will this year be a depressing anomaly like that of 2008? What should investors keep an eye on? Berry : I am concerned that deflation's grip on this economy, and for that matter the world's economy, is tightening. This is not the same credit crisis-induced world of 2008. However, if growth continues to slow, austerity in many countries becomes the rule of the day — to counter very high debt levels — and perhaps more importantly, the US consumer continues to withdraw, and prolonged debt deflation could ensue. Such a spiral would be difficult to reverse in the short run. Investors should watch the money multiplier (M1, M2 or MZ), which is depressed and has been declining for three years now. If the multiplier turns up and the velocity of money reverses to the upside, inflation could be quite high. If these indicators continue to decline and also Treasury yields reverse (30-year mortgage's are now under 4 percent), then we will have beaten the deflation bogie. SIN: Given silver's volatility, what investment option (futures, ETFs, mining stocks, or physical holdings) provides the best protection and ROI for long-term investors? Berry : The best protection for investors in silver is to own the physical metal and hold it in-house. From 2000 through 2008, we were recommending bags of silver coins as the price of silver appreciated. In terms of mining stock, we are particularly fond of companies such as Hecla Mining (NYSE: HL), Coeur (NYSE: CDE,TSX: CDM), Silver Wheaton (NYSE: SLW,TSX: SLW), Pan Am Silver (NASDAQ: PAAS,TSX: PAA) and Endeavour Silver (NYSE: EXK,TSX: EDR). SIN: Any silver juniors on your radar? Berry : On the exploration side we like Orko Silver (TSXV: OK,PINK: OKOFF) and Quaterra Resources' (AMEX: QMM,TSXV: QTA) Nieves silver project (we own). Excellon Resources (TSX: EXN) in Mexico is interesting, as is Clynton Nauman's Yukon silver company, Alexco Resources (TSX: AXR,AMEX: AXU).
If you would like the opportunity to present your own questions to Dr. Michael Berry in person, he will be hosting his Silver Summit Q&A Session on October 20 th at the Davenport Hotel in Spokane, Washington.I, Melissa Pistilli, hold no interest in any of the companies mentioned in this article. Silver Market Q&A: Dr. Michael Berry, Morning Notes from Silver Investing News