More Reasons to Be Bullish on Silver: Eldora Gold Resources News
Here's a couple new reasons to own silver that a lot of mainstream investors probably aren't aware of…
Due to increased demand from industry and investors, silver exports from China are expected to drop about 40% this year. And that's actually an improvement; customs data show exports plunged almost 60% through the first eight months. China exported about 3,500 metric tons of silver in 2009, but has exported only 970 tons through August of this year.
How important is this? China is the world's third largest producer of silver (after Peru and Mexico), so the amount of silver coming to the global marketplace this year will drop by more than 74 million ounces. This represents roughly 8.3% of total annual global supply from 2009. If worldwide demand continues at its current pace, where is the extra metal going to come from? This alone tells us the price of silver will move higher.
Eldora Gold Resources Canada News - The next item I sleuthed out was that the US Mint is expected to release a new five-ounce silver bullion coin this year, the first ever. The coin will be three inches in diameter and have a composition of .999 fine silver.
I've read the five-ounce bullion coins will be near-exact replicas of the America the Beautiful quarters. There will reportedly be five different designs, and the mint plans to produce 100,000 of each. I can't wait to see them.
The coins will be classified as bullion, meaning they should be available to the same dealers already authorized by the mint. This will likely create excitement in the silver market, especially when you consider its affordability. At $23 silver, the five-ounce bullion coin will cost $115, plus premium. One ounce of gold runs $1,340 as I write, while five ounces will cost you $6,700 plus commission.
Eldora Gold Resources Canada News - Perhaps most bullish is the fact that silver is vastly underpriced when compared to gold. Look at it this way: gold is currently priced 57% above its 1980 nominal high of $850; silver would have to more than double to reach its 1980 nominal high of $48.70. And that's excluding any inflation-adjusted calculation. Yes, silver's spike was partly a direct result of hoarding by the Hunt Brothers, but my question to the skeptics is this: what's keeping us from seeing similar stockpiling today? What if there are several Hunt Brothers out there?
It's true that central banks don't buy and store physical silver, so one source of demand that's common for gold isn't present for silver. But let's keep things in perspective: demand for all forms of silver is rising, and we see no reason the trend won't continue. And with indicators like decreasing supply from China and increased attention from a new bullion coin, I say the big picture on the silver price is extremely bullish.
This silver sleuth says, buy some silver on the next dip. There's lots of reasons you won't regret it.
Disclosure: No position. About the author: Jeff Clark is Editor of BIG GOLD and Explorers’ League at Casey Research (http://www.caseyresearch.com).
Eldora Gold Resources Canada was founded by a group of experts in the mineral recovery and mining industry, whose focus is to provide accurate information, state of the art equipment and outstanding customer service. Eldora Gold has developed and is offering a proprietary separation technique for extracting mineral content from mining tailings.
10079 Winona Station,
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release More Reasons to Be Bullish on Silver: Eldora Gold Resources News here
News-ID: 152428 • Views: 1007
More Releases from Eldora Gold Resources LTD.
Eldora Gold Resources Expects New Tailings Test Results from Kenora in May
March 18, 2011 By eldora (Winona) – Eldora Gold Resources Ltd. has begun first stage testing of tailings material from a small-scale Kenora Mining District property owned by a private company. The tailings are contained in two disposal sites from milling operations that ceased in the early 1900′s. To start, 10 kg of sample will be tested through Eldora’s laboratory-scale GravSep™ system for gold recovery and for
Eldora Gold Resources Now Trading on Frankfurt Stock Exchange
March 17, 2011 By eldora (Winona) – Eldora Gold Resources Ltd., a mineral recovery company, is proud to announce its stock is now trading as of March 14 on the First Quotation Board (Open Market) of the Frankfurt Stock Exchange. “The response has been phenomenal,” says Eldora Gold president Sonny Wilcox. The company symbol ER5 was assigned last month by Deutsche Börse. Eldora successfully showcased its physical
Eldora Gold Resources Set to Trade on Frankfurt Stock Exchange
March 4, 2011 (Winona) – Eldora Gold Resources Ltd., a mineral recovery company, is proud to announce that it’s listing and trading is expected to begin the week of March 14 on the First Quotation Board (Open Market) of the Frankfurt Stock Exchange. The company symbol ER5 was assigned last month by Deutsche Börse. Eldora is currently showcasing its physical separation process, called GravSep™, at the PDAC conference
Eldora Gold Expects New Tailings Test Results from Kenora in May
Winona - Eldora Gold Resources Ltd. has begun first stage testing of tailings material from a small-scale Kenora Mining District property owned by a private company. The tailings are contained in two disposal sites from milling operations that ceased in the early 1900′s. To start, 10 kg of sample will be tested through Eldora’s laboratory-scale GravSep™ system for gold recovery and for suitability for remediation. Results