Rising mountain debt loads and central bank balance sheets will continue to weigh on the confidence levels.
"nvestors are becoming more interested in physical silver. According to data from the U.S. Mint, American Silver Eagle sales reached a new record of 39.8 million last year. The dramatic shift in physical silver demand is magnified when compared to US silver production data. SilverDoctors explains, “U.S. silver production has declined 50% since its high of 70 million ounces in 1997. In 1997 American Silver Eagle sales were 3.6 million, which accounted for only 5% of domestic silver production. Contrasted to today, Silver Eagle sales are estimated to reach 40 million while domestic mine supply will decline to 35 million ounces in 2011. Thus, American Silver Eagle sales will be 114% of the total US silver supply in 2011, what a difference in 14 years.”
"The demand for physical gold and silver is also appearing in certain stocks. Over the past two days, shares of the SPDR Gold Trust have closed 1.19% higher, while shares of the Sprott Physical Gold Trust have jumped 1.90%. The difference in silver is even greater. In the same time period, shares of the iShares Silver Trust have declined 1.11%, but shares of the Sprott Physical Silver Trust have surged 2.71%. The Sprott funds are managed by billionaire precious metal investor Eric Sprott, a strong advocate of physical bullion investments."