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The Silver Rally is Starting

How to Make 357% as Silver Takes Off

Written by Briton Ryle
Posted March 7, 2013

"The U.S. Mint has temporarily sold out of 2013 American Eagle silver bullion coins. As a result, sales are suspended until we can build up an inventory of these coins."
— U.S. Mint

The U.S. Mint started taking orders for 2013 American Eagle silver coins on January 7. By the end of the day, the Mint had sold 3.9 million coins.

Ten days later, on January 17, the Mint had sold 6 million coins — and its silver supply was exhausted.

The U.S. Mint is now rationing coins to dealers. More than 7 million have been sold, nearly 1 million so far in March.

Investors continue to buy silver coins as fast as they can be pressed. Dealers are responding by boosting their premiums on silver coins.

And yet silver prices themselves are languishing between $27.50 and $28.50.

Both Bloomberg and Barclays show that investors have bought so many shares in silver-backed ETFs that those ETFs now hold a record of 19,114 tons of silver globally. (For the record, those holdings are equivalent to about nine months of mine output.)

And a recent study by Thomson Reuters forecasts that industrial silver use will rise to 511 million ounces this year, accounting for 57% of the world's silver production. This is a new record high.

So ETFs hold nine months of production, and industry will use another six months or so. That's 15 months of production...

And yet silver prices themselves are languishing between $27.50 and $28.50.

What's Going On With Silver?!

Investors can be a funny bunch sometimes. Remember when Apple Computers was the greatest company ever? That was just five months ago. Now? Apple is virtually hated by the investment crowd.

In a way, it's funny how fickle they can be. But don't take it lightly...

Wild swings in investor sentiment are among the most reliable indicators out there.

I probably don't have to tell you what Warren Buffett says about investor sentiment: “Be fearful when others are greedy and greedy when others are fearful.”

I'm not sure you could say investors are afraid of silver. But they sure aren't buying it.

Why not?

Bernanke is still pumping money like it's his job. (Oh, wait...) Countries around the world are devaluing their currency as fast as they can. Economic growth isn't really picking up.

In spite of these things, investors do not see the upside for silver.

Well, most investors don't...

This Man Averages 100.94% Gains

So far this year, my colleague Christian DeHaemer has taken an average of 100.94% per trade in his Options Trading Pit service:

  • 185% on Westport (NASDAQ:WPRT)

  • 127% on Asbury Automotive (NYSE:ABG)

  • 52% on Peabody Energy (NYSE:BTU)

  • 38% on Rentech Nitrogen Partners (NASDAQ:RNF)

Yeah, he's pretty good at what he does.

Now, Christian doesn't trade a lot. But his readers have the confidence that when he moves, they have a good chance to double their money.

He's only been wrong once this year, resulting in a paltry 10% loss.

You may recall that Christian announced his Westport trade right here in Wealth Daily. A week later, that trade was up 185%.

Chris just got the green light from a powerful setup in the precious metals market.

In fact, it will probably produce his next triple-digit winner...

slv 3 6

As you can see from this chart, silver prices have been pretty volatile. They've settled down over the last few days — and they are ready to run.

When silver prices move up, they ramp very quickly.

It's the type of movement that can give you a triple-digit gain in a couple of days.

Like his 185% Westport trade, Christian announced his silver entry here in Wealth Daily...

He's forecasting the white metal will be up 357% by November 2013.

Profitably yours,

Until next time,

brit''s sig

Briton Ryle

follow basic@BritonRyle on Twitter

An 18-year veteran of the newsletter business, Briton Ryle is the editor of The Wealth Advisory income stock newsletter, with a focus on top-quality dividend growth stocks and REITs. Briton also manages the Real Income Trader advisory service, where his readers take regular cash payouts using a low-risk covered call option strategy. He also contributes a weekly column to the Wealth Daily e-letter. To learn more about Briton, click here.


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