Xu Yaxin: Silver Value Investment Is Just In Time.

< p > in fact, with the vigorous development of China's precious metals market over the past few years, silver has become one of the most preferred commodities for many investment and speculators. If the spot silver monthly chart shows that if the spot silver is in the 35 to 50 US dollars / ounce bubble, then the current 18-20 US dollars / ounce should be a good time to intervene in the medium and long term value investment. < /p >
< p > < strong > < a > href= > http://www.91se91.com/news/index_cj.asp > > Silver > /a > historical bubble > /strong > /p >
< p > relative to gold, the silver millennium has also been a sight for a while. This is the great bubble of silver history that many senior silver personages are talking about: Hunter brothers' speculating speculation. < /p >
< p > > Hunter brothers crazy speculation silver in the late 70s and early 80s of twentieth Century, once controlled more than half of the futures contracts in the US futures market, which can be said to be the super main force in the whole market. At the same time, the brothers also hold 120 million ounces of spot silver, pushing the price of silver from 2 dollars / ounce to 50.35 dollars / ounce. Although spot silver rose to a high level of $49.77 per ounce in 2011, if the dollar's purchasing power and inflation were taken into account, Hunter brothers would record a record high of about $120 an ounce. In those years, countless empty bears were crushed to death, and the greed, desire, fear and hope of human nature were all dripping up in this market. Although Hunter brothers had created an unprecedented legend in the history of financial speculation, he finally destroyed himself in this legend and ended up in bankruptcy. < /p >
< p > worthy of admiration is that the Hunter brothers spent ten years or so to accumulate silver in order to arrange such a big speculation. It took only half a year to carry out the general attack. Although the manipulation of the market ultimately led to the collapse of the US government's intervention, Hunter's persistence in speculation and patience is enough to win the admiration and respect of every speculator who has entered the market later. < /p >
< p > the saying goes: history will not be repeated simply, but history is always strikingly similar. Spot silver continued to soar from the end of October 2008 at $8.42 / ounce, eventually soaring like rocket, and touched the high point of $49.77 / ounce at the end of April 2011. The collapse of the silver bubble has also led the price into a long bear market. After three years of waiting, it has gradually made the dawn of silver value investment begin. < /p >
< p > < strong > < a > href= > http://www.91se91.com/news/index_cj.asp > > Silver < /a > and < a href= > > http://www.91se91.com/news/index_cj.asp > > Gold > /a > the difference is < /strong > < > >
< p > because physical properties of gold are more stable than silver, so in the eyes of many people, physical gold is often favored. However, from the perspective of accounts, silver has lower entry threshold and higher leverage, so the utilization rate of funds will be even higher, resulting in a particularly large gap between the volume of silver trading and the volume of gold trading in the market. < /p >
< p > I believe that if gold is compared to a large share, silver is like a small cap, that is, the volatility of silver is bigger than that of gold, partly because of the lower price of silver and the smaller scale of the market. So on the operational level, gold is better than silver. Only when tools are used smoothly and trading experience is enough, silver's profitability is stronger than that of gold, and at the same time, the risk is even greater. < /p >
In theory, silver is more sensitive to changes in the economy, and gold is more sensitive to monetary changes. P The reason is that a large part of the demand for silver comes from industry, which accounts for at least 40% of the global demand. However, the demand for gold comes mainly from investment demand and jewellery demand. On the one hand, silver is closely related to industry, and it also directly causes silver price to be more sensitive to economic factors, such as the demand and output of industry and manufacturing. On the other hand, gold is closely related to changes in monetary factors, such as monetary policy, inflation rate, geopolitics and so on. < /p >
< p > in addition, most of the silver is often an accessory product of lead, zinc, copper, gold and other metals. In this way, the link between silver production and silver prices is not as close as gold production and gold price link. < /p >
To sum up, from 2008 to 2012, the world has already walked out of the bottom of the economic crisis. There is no surprise that central banks will enter a new round of interest rate cycles in the future. P With the economic crisis fading away, the global economic recovery and even the new prosperity cycle is a big probability event in the next few years, which means that the strong industry and manufacturing industry will probably bring great potential demand to silver. < /p >