Gold and Silver at 4 Year Lows

Silver - Large Pic w Bars

Gold and Silver haven't been this low since 2010.

ecall when Stallone unleashed THE EXPENDABLES on us or Ben Affleck redeemed himself in THE TOWN.  That's also the last time gold and silver was this low.


HSBC has downgraded its 2014 average gold and silver price forecast, saying that an expected US dollar rally that is seen to run into 2015 will keep precious metals prices pressured. The average price of gold this year has been downgraded from a previous $1,292 to $1,265 per ounce, a 2.1 percent downward revision. Average silver price is reduced to the current forecast of $19.30 from a previous $19.50 per ounce. While the strengthening USD of the back of expectations for rising Fed rates is seen as a key factor pressuring gold price in the longer term, analyst James Steel said that it is not the only factor. “Many of the factors associated with a stronger USD are inherently gold-bearish. Gold’s decline cannot therefore entirely be blamed on a stronger USD,” Steel said. Part of these factors is related to the gradual tapering of loose monetary policy in the US, which is pushing investors towards higher-yielding assets. Low inflation rates also reduces the inflation-hedge buying for gold. As well, flow of funds into the rising stocks markets are also depriving gold investments. The bank however sees the $1,200 per ounce as a key level where the price is sufficiently low to ignite physical off-take. Comparatively, HSBC is slightly more bullish on silver, as the metal is more reliant on industrial than investment demand. Steel said that he is more optimistic on silver prices due to forecast of increase in industrial production. As well, “silver-ETFs have been firm and jewellery demand steady while scrap supplies are falling”. -

At some point either volatility in the market and the fear to hold equities will drive up gold and silver prices.  Or perhaps some big money buyers will come in and buy up the miners, who knows? 

Best bets for playing silver are the trusted silver ETF (SLV) and a few of it's miners, those tickers are the following and are all at 52-week lows (or very close to)

Company namePriceMkt Cap
SSRISilver Standard R...5.49444.65M
SLWSilver Wheaton Co...19.197.00B
AGFirst Majestic Si...7.35921.27M
CDECoeur Mining Inc4.64480.08M
SVLCSilverCrest Mines...1.40173.34M
HLHecla Mining Company2.45856.28M

Bottom line: When silver and gold get this low, it brings out the bottom feeders.  We expect it to bounce before year end.