Silver : History and Future Outlook

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Silver : History and Future Outlook

  1. 1.
  2. 2. HISTORY OF SILVER <br /><ul><li>1st mined in 3000 Bc in Turkey
  3. 3. Mined mainly in Peru, Bolivia, Mexico, Australia.
  4. 4. Sources</li></ul> Directly mined.<br />Byproduct of gold,lead,copper<br />
  5. 5. TOP TEN SILVER PRODUCING <br />COUNTRIES<br />
  6. 6. ECONOMIC INDICATORS AFFECTING THE<br /> SILVER PRICE<br /><ul><li> Unemployment rate
  7. 7. GDP
  8. 8. Non- farm Payrolls
  9. 9. Home Sales data
  10. 10. Manufacturing Index
  11. 11. Trade Balance</li></li></ul><li>FACTORS AFFECTING THE SILVER PRICE<br /><ul><li>Supply & demand
  12. 12. Inflation
  13. 13. Oil
  14. 14. Political Scenario
  15. 15. Dollar Index
  16. 16. Speculation
  17. 17. World Economic Situation</li></li></ul><li>INDISPENSABLE METAL OF LIFE<br />WE ARE SURROUNDED BY SILVER<br />MOST CONDUCTIVE METAL<br />ELECTRONICS BIGGEST DRIVER OF SILVER<br />EVERY THING WE USE HAS SILVER IN IT<br />INDUSTRY DEPENDS ON SILVER<br />INDUSTRIAL AND PERSONAL USE<br /><ul><li> WE ARE SURROUNDED BY SILVER
  18. 18. MOST CONDUCTIVE METAL
  19. 19. ELECTRONICS BIGGEST DRIVER OF SILVER
  20. 20. EVERY THING WE USE HAS SILVER IN IT
  21. 21. INDUSTRY DEPENDS ON SILVER
  22. 22. INDUSTRIAL AND PERSONAL USE</li></li></ul><li>SILVER AS AN INVESTMENT <br /><ul><li>LAST YEAR RETURN OF 80%
  23. 23. DOES NOT LOOSE ITS VALUE UNLIKE CURRENCY NOTES
  24. 24. HIGH DEMAND FOR INDUSTRIAL USES
  25. 25. SCOPE FOR GROWTH </li></li></ul><li>VEHICLES OF INVESTMENT <br /><ul><li>BARS
  26. 26. CERTIFICATES
  27. 27. EXCHANGE TRADED PRODUCT
  28. 28. ACCOUNTS
  29. 29. DERIVATIVES , CFDs AND SPREAD BETTING
  30. 30. MINING COMPANIES </li></li></ul><li>SILVER DEMAND/SUPPLY IMPORTANT <br /><ul><li> DEMAND HAS INCREASED BY MANY FOLDS
  31. 31. DEFICIT THERE FOR 16 YEARS
  32. 32. SILVER MINING INSUFFICIENT TO MEET YEARLY DEMAND
  33. 33. NO MAJOR STOCKPILES OF SILVER ARE LEFT IN THE WORLD</li></li></ul><li>DEMAND OF SILVER <br /><ul><li>BANDAGES
  34. 34. BATTERIES
  35. 35. CELL PHONES
  36. 36. COMPUTERS
  37. 37. SATELLITE
  38. 38. HI TECH WEAPONS
  39. 39. ELECTRONIC CIRCUIT BOARDS
  40. 40. SOLAR CELLS
  41. 41. JEWELLERY
  42. 42. COINS
  43. 43. WIRES AND CABLES
  44. 44. LAPTOPS
  45. 45. CAMERA</li></li></ul><li>SILVER DEMAND INDUSTRY WISE<br /> (% of Total Fabrication)<br />
  46. 46. CHINA FACTOR<br /><ul><li>HIGH GROWTH HAS LEAD TO INCREASE DEMAND EXPONENTIALLY
  47. 47. CHINESE USE 70 TIMES THE SILVER THAN AMERICANS
  48. 48. DEMAND FACTOR
  49. 49. INDUSTRIAL DEMAND IS MORE THAN THAT OF U.S
  50. 50. HIGH POPULATION HIGH DEMAND</li></li></ul><li>EFFECT OF DECLINING U.S $<br /><ul><li>Declining U.S $ has less purchasing power
  51. 51. Silver with Gold acts as a real money for over 5000 years
  52. 52. Encourages investment
  53. 53. Makes silver a profitable short term investment </li></li></ul><li>GOLD vs SILVER<br />GOLD<br /><ul><li> Pure asset in world
  54. 54. Is medium of exchange
  55. 55. Lightweight for the value
  56. 56. Fairly easy to identify.
  57. 57. Ductility
  58. 58. Gold is a very Private Investment.
  59. 59. Gold purchases are not subject to mandatory </li></ul> government reporting . <br />SILVER<br /><ul><li> Silver - more than just a way to preserve wealth
  60. 60. Prices has more then doubled from last year.
  61. 61. An investment with solid fundamentals.
  62. 62. Rising demand for the white metal has outpaced investor fascination for gold.</li></li></ul><li>
  63. 63. SILVER 2011<br />
  64. 64. SILVER PRODUCTION & DEMAND<br />
  65. 65. SILVER WORTH MORE THAN GOLD<br />Click on the Image to see this video<br />
  66. 66. GOLD SILVER RATIO <br />
  67. 67. ROLE OF CENTRAL BANKS IN SILVER vs GOLD<br />1.Direct Leasing<br /><ul><li>Central banks are involved in the leasing effect i.e taking gold/silver to “bullion bank who pay 1% interest and sell the metal in the open market for 3 % return to buy Treasury bonds .
  68. 68. Major firms involved are Bank of America, Barclays, Citigroup etc.
  69. 69. leasing effect of gold/silver increases the supply for industrial, commercial, and investment uses,
  70. 70. Central banks and the bullion banks are insensitive to the price of gold or silver</li></ul>2. Gold and Silver Swaps- <br /><ul><li>two central banks swap hordes of gold/silver—with the objective of muddying the accounting waters. Or ,
  71. 71. one central bank’s gold reserves, are lent for currency to another central bank Which are considered as “collateralized loans,” and thus not appearing in the balance sheets. </li></ul>3. Mining companies<br />Mining companies borrow gold/silver from the Fed or other central banks, sell it, and replace it with new gold fresh from the mine.<br />1.Direct Leasing<br />2. Gold and Silver Swaps<br />3. Mining companies<br />
  72. 72. UNITED STATES CRISIS AND SILVER PRICES <br />Since the end of 2008, the US Federal Reserve, the Central bank of US, has pumped nearly $2.3 trillion Into the American Financial System in the hope of reviving the moribund economy. It ended on June 30, 2011. <br />During this period Silver price increase from $19.09 to $34.69 growth of 81.72% and dollar index decrease from 82.91 to 74.40 down by 10.3%.<br />Since the end of 2008, the US Federal Reserve, the Central bank of US, has pumped nearly $2.3 trillion Into the American Financial System in the hope of reviving the moribund economy. It ended on June 30, 2011. <br />During this period Silver price increase from $19.09 to $34.69 growth of 81.72% and dollar index decrease from 82.91 to 74.40 down by 10.3%.<br />
  73. 73. IS SILVER BULLY ?<br />1. Continuing and increasing global macroeconomic, currency and geopolitical risks<br />2. silver's historic role as money and a store of value<br />3.significant industrial demand and increasing investment demand. <br />4. high silver prices in the long run due to inflation and stagflation as the global monetary and fiscal reflation affects the value of fiat currencies.<br />5. Silver is in effect a leveraged sister of Gold. Investors use gold more for wealth preservation purposes and silver in order to make a return.<br />The Outlook for Silver Remains Very Bullish due to the following reasons :-<br />Continuing and increasing global macroeconomic, currency and geopolitical risks<br />2. silver's historic role as money and a store of value<br />3.significant industrial demand and increasing investment demand. <br />4. high silver prices in the long run due to inflation and stagflation as the global monetary and fiscal reflation affects the value of fiat currencies.<br />5. Silver is in effect a leveraged sister of Gold. Investors use gold more for wealth preservation purposes and silver in order to make a return.<br /> American Silver Eagle Coins are the official silver bullion coin of the United States released on November 24, 1986. Lowest Price: $4,466.00 and Highest Price: $4,665.51<br />
  74. 74. HOW SILVER IS LIKE OIL<br /><ul><li>1970-2000 -Oil prices increased continuously.
  75. 75. 1990- $.80 a gallon.
  76. 76. Cheap oil is gone ,cheap silver soon to be gone.
  77. 77. Oil remaining harder to find and expensive to produce.
  78. 78. 1990- silver was cheap and easy to produce.
  79. 79. This decade dependent on electronics, will lead silver to new boom.
  80. 80. Future more electronic than past.
  81. 81. Better time for silver investors.
  82. 82. Silver less below the ground surface.</li></li></ul><li>$75 SILVER LOOMING<br />$75 SILVER LOOMING<br /><ul><li> DEMAND IS RISING BUT SUPPLY IS NOT </li></ul>THERE TO MEET DEMAND<br /><ul><li> AN INVESTMENT WITH SOLID FUNDAMENTALS
  83. 83. AN IMPORTANT ASPECT FOR DAILY USE
  84. 84. DEMAND IS THERE AS A INVESTMENT AND AS INDUSTRIAL USE</li></ul>DEMAND IS RISING BUT SUPPLY IS NOT THER TO MEET DEMAND<br />AN INVESTMENT WITH SOLID FUNDAMENTA<br />AN IMPORTANT ASPECT FOR DAILY USE<br />DEMAND IS THERE AS A INVESTMENT AND INDUSTRIAL USE<br />
  85. 85. THANK YOU <br />Akshat Jain<br />GauriKappal<br />RaveenaKalra<br />Stuti Bansal<br />TusharSindhwani<br />VipulGarg<br />

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