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Subject This could well be the Era of the “Great Silver Rush”:
Poster Handle Neim-Ya'shar
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This could well be the Era of the “Great Silver Rush”:

[link to www.commoditytrademantra.com]

The jump in the Silver ETF holdings to a new all time high shows how some investor’s see the poor man’s Gold as a cheaper alternative to Gold and are allocating to it. Yet, allocations to Silver remain very small which suggests that the holdings could go higher resulting in higher Silver Prices again in 2013, – much higher than as seen in 2011. Gold Prices generally gain on the rising Euro & the declining US Dollar.


silvr

Gold Prices may remain unidirectional as both currencies – the US Dollar & the Euro get whipped at the same time. Another but an important point of concern for Gold is that – India‘s Gold imports could fall much further, by 60% to 70% if the government also presses ahead with plans for Gold bonds and a controversial proposed tax amnesty on such investments.

Outflow of the foreign exchange on account of Gold imports, in the world’s largest consumer of Gold, is impacting the country’s current account deficit heavily. Current account deficit has widened to $38.7 billion or 4.6 percent of the GDP, an all-time high figure, during the first half of the current fiscal.

Of the $71 billion current account deficit, as much as $51 billion is on account of gold imports. Indian buying has been holding generally steady between mid-December last year through to January so far, with volumes above average for this time of year. Demand at the beginning of 2013 has only been a reaction, considerably to headlines on the potential for further import tax rate hikes. The threat of higher customs duties typically prompts local market participants to frontload their buying to avoid having to pay the more expensive tax rate. This will soon collapse as taxes are hiked.

Indian households are estimated to have holding up to 25,000 metric tons of gold for generations, but much lesser in Silver Holdings [13].India too may soon turn to Silver for Investment purposes, if not for jewelry. When the world’s largest buyer of Gold turns its attention to Silver Investment [14], what happens next will be of no Big Surprise. A Silver Price Explosion!
 
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