NEW YORK, NY -- (Marketwire) -- 12/08/10 -- The price of silver surged to 30 year highs on Monday after US Federal Reserve Chairman Ben Bernanke said that further quantitative easing is "certainly possible." The objective of quantitative easing is to drive interest rates lower in an effort to spark spending and lending. One of the biggest concerns with the process is that it could make the already weak US dollar even weaker because when a country cuts interest rates, it typically makes its currency less attractive to investors. Traditionally, when the greenback takes a nosedive, investors flock to precious metals as their prices often move inverse to the US dollar. Silver presents itself as a unique investment opportunity as it has considerable demand as both a precious metal as well as an industrial metal. According to The Silver Institute, at least half of the demand for silver is industrial with silver being applied to batteries, brazing and soldering, bearings and electronics. Two of the most common ways two invest in silver are through an ETF or direct investment in the silver miners. The Bedford Report examines the outlook for the Silver Market and provides research reports on iShares Silver Trust (NYSE: SLV) and Endeavour Silver Corporation (NYSE Amex: EXK). Access to the full company reports can be found at:
Silver ETFs represent an easy way for an investor to gain exposure to the silver price without having to store the actual bars of silver. Over the last month, the SLV Silver ETF has surged more than 20% while SPDR Gold Shares -- the world's largest Gold ETF -- has only gained about 6%.
While "QE3" is purely speculation, the poor job market continues to drive silver up. Last Friday the US Bureau of Labor Statistics surprisingly announced that unemployment rose from 9.6 percent in October to 9.8 percent in November. When economic data -- particularly job data -- disappoints, investors traditionally take haven in precious metal markets to avoid currency fluctuations. With Ben Bernanke stating in an interview that unemployment may take five years to fall to a normal level, silver could be a popular investment option for years to come.
The Bedford Report releases regular market updates on The Silver Market so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.
The bulls who believe that silver prices will continue to surge may be inclined to look into silver miners. Investors in silver miners are banking on rising earnings, as silver prices rise, to provide value. Endeavour Silver Corp has seen its price double since September. Last month the company posted a $0.1 million profit, which compares favorably with a loss of $1.5 million in the year ago period.
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