| |
Major Site Upgrade in Progress |
 |
|
 |
|
Nadeem
Veteran Investor
Joined: 11 Jul 2004
Posts: 639
Cash Points ££ 13955.74
|
|
|
 |
|
 |
|
 Posted: Mon Jan 29, 2007 4:23 pm Post subject: The Real International Price of Silver |
 |
|
|
 |
|
 |
|
|
|
|
What is the real price of an ounce of silver and just how widespread should a silver bull market be? We have watched over the last few years as the price of silver in US dollars has marched upwards from the lows of $4 to the recent highs of $15. However, the good luck of silver has been mainly laid at the door of the bad luck of US dollar. The US dollar depreciates and hence the price of silver in US dollars appreciates. Seems a simple enough equation, but surely a real bull market will stand on its own merits and not on the misfortunes of another? With that in mind, is silver worth investing in by lovers of silver from other countries across the globe?
To answer that question, I have come up with the Silver Analyst Composite Price or the SACP for short. The SACP attempts to ask the question of how much is silver really worth. As I said, silver is increasing in US dollar terms but the US dollar is also depreciating in the international currency markets. Based on this, we may fear that silver may not be faring so well in other major currencies such as the Yen or Euro. If the silver bull market is for real, we should expect to see an increase internationally and across the board.
To that end, the SACP is an equally weighted composite of the silver spot price in six major world currencies. These are the US dollar, the Euro, the Yen, the British pound, the Canadian dollar and the Australian dollar. The chart is then rebased to the start of the silver bull market in June 2003 where the SACP is set to one. In this way we can see exactly how the international silver bull market has progressed in the last three and a half years. As you examine the chart below, the international bull market hit a recent peak of 2.95 on the 12th May 2006. That tells you right away that silver as measured across a broad range of currencies has almost tripled in price since June 2003. In other words, it's an international bull market in silver after all!
In fact, there is not too great a disparity between silver prices across the globe. If one looked at the US dollar price rebased to the bull market start, you would get a corresponding multiple of 3.31 indicating that though the US dollar-denominated bull market is the strongest of the six, silver is 12% weaker on a global basis. The table below gives the end of year values for each currency rebased to 1 from the start of the silver bull market:
Full article - http://www.marketoracle.co.uk/Article277.html |
|
|
|
|
|
|
 |
Online Finance Tools & Calculators |
 |
| Credit Score Calculator |
Easy to use online Credit Scoring tool - Calculate your credit score now online for FREE ! using the Moneyforums.co.uk credit scoring tool. Also TEN Tips on improving and mainting a good credit rating ! |
|
| Quick Health Calculator |
Easy to use quick health calculator to help you get started on the path to fitness. Calculates your body mass index (BMI). |
|
| "When will I die ?" Calculator |
Calculate when will you die based on your current life style and then more importantly what you can do about extending your lifespan ! |
|
| Mortgage Calculator |
Easy to use online Mortgage calculator tool - Calculate how long it will take to pay off your mortgage and what your monthly repayments will be as well as interest charged per month per each year. |
|
| Savings Calculator |
Use the flexible savings calculator to estimate the amount of interest you would earn given a level of monthly savings, with many optional settings. |
|
| UK Tax Calculator |
Check your tax and NI liability using this easy to use online tool. Outputs, Tax, Ni, Net pay and gross pay on an annual, monthly and weekly basis, also estimates your tax burden and the number of days a year you work for the tax man ! Plus lots of tax saving tips. |
|
|
 |
|
 |
|
Money
Forums Guides |
|
| Credit
Card Stoozing |
The
following guide explains the basics of credit
card stoozing in a step by step basis. |
|
| Discount
Vouchers |
Online
discount vouchers giving upto
50% off in stores such as Dixons,
Tesco, Avon, Currys, Boden and more. Many
of the vouchers are time limited - So check
back regularly |
|
| Money
Saving Guide |
Guide
to saving money on household bills & personal
finances - Start saving thousands of £'s
every year TODAY ! |
|
| Savings
Tree |
A
guide to Savings Accounts, from Cash ISA's to
Regular Savers to Premium Bonds, all explained
in an easy to understand manner. |
|
|
Users
Groups | Profile
| Messages
| FAQ | Sponsers
& Links | Member
list | Recommend this site | Top Money Saving Sitee
© 2004 - 2007 Moneyforums.co.uk / Market Oracle Ltd - Asserts copyright on all topics & posts made on this site. Moneyforums are open forums, and thus posts are NOT endorsed by Moneyforums.co.uk / Market Oracle Ltd . Any and all information provided within the Website is for general information purposes only and nor is or shall be deemed to constitute, financial or other advice. We recommend that independent professional advice is obtained before you purchase any product and/or service. All tools and guides are provided as is for general information purposes only.
|
|
|
