Rare Earth Silver

The last years of mining silver could well be compared to studies that indicate the world is approaching the last years of pumping oil.

While the earth's stores of silver may not actually run out anytime soon, increasing demand and increasingly difficult mining opportunities for silver tends to put upward pressure on the cost of extracting what silver is left from the planet.

Those mining costs are also getting more and more complex as new processes and resource scouting techniques are required.

Energy prices ultimately will go up. If not because of dwindling supply, then they will very likely rise due to inflation. The same is true of precious metal prices.

The Silver Mining Industry

The silver mining industry, much like the agricultural industry, is aging. It will take a substantial capital investment to train new people and bring in new innovation to meet growing industrial and investor demand for silver.

Furthermore, silver mining is machine and labor intensive. This makes it more difficult to factor in abstract costs and risks like political or regulatory challenges, or the constant threat of nationalization of personal silver stashes.

It will take years to re-develop the silver industry and build the infrastructure needed to meet the coming demand for the metal. As capital and controls over its flow increase, it will cost more to raise the funds needed for this redevelopment process.

Furthermore, it seems that too many people are relying on scrap silver flows coming into the market to quell price rises by acting as an alternate source of supply to mining.

Silver is Being Kept Deliberately Undervalued

Silver miners are still languishing and beholden to the bullion banks, who keep putting their intrinsically valuable product on sale at deeply discounted prices by manipulating derivatives markets.

It has been a tough road, with the years of suppressive price management and the growing "financialization" of the global economy creating underlying pressure for a substantial rise in silver's price.

Silver has also been kept tethered to its "mined-as-a-by-product" status. This has made silver an even more obscure and off the radar investment. Most market analysts just do not understand the silver market, and are probably looking for momentum anyway.

Breaking Silver's Shackles

Basically, the physical silver market has not yet broken through the shackles that the questionable use of derivatives has placed on it.

When the breakout eventually occurs, the price of silver can only go much higher to better reflect its genuine value and supply limitations relative to intrinsically worthless fiat currency, which is currently being printed and electronically generated in vast quantities by central banks around the world.

Many people are curious about how to protect their money, but often overlook the many benefits of silver coins. Take a look at our Free Guide to get started today.

Advantages of Online Commodities Trading

The advent of technology has also changed the way trading has been conducted. Aside from the traditional trading floor that that is used in authorized exchanges of goods or commodities, traders may also work through online commodities trading. Traders may think of the latter type of trading for various reasons and considerations.

Traders may find it more convenient to do their transactions online even while they sit at home. They may be guided by brokers who have some in depth knowledge and considerable experiences when it comes to trading through the internet. Traders may also experience ease in performing their trading activities because they can make use of software programs that provide the essential information that they need in analyzing the commodities market and in making trade decisions.

Online traders have access to their accounts and to important tools such as charts that they need, quotes that they can study as well as details and news about the commodities that they are trading. They also have the advantage of having more chances at gaining profit even with a limited capital to start with. Online commodities trading will be good for those who are new to the trading business. The commissions are lower and traders are able to execute their transactions very quickly. They are also able to get results in a very short time.

Online traders have the advantage of working independently. Although there are suggested strategies to use, they can modify or combine it with other techniques that will help them in predicting future trends in the commodities market. This type of one-stop shop trading business allows newcomers to learn the ropes without having to take too much risk in the process.

Online traders can also benefit from the various types of accounts that are available. They may choose accounts depending on their level. Beginners as well as expert traders may find the best types of accounts that they are mostly comfortable dealing with depending on the capital that they have put up to start their trading experiences. There are also brokers that allow newcomers to start with mini accounts in order for them to get a feel of the trading process or to familiarize them with the trading system that is being implemented.

Traders especially those who are new to commodities trading may do some research about the products that they would like to deal with as there are software programs that are designed for specific commodities in the market. For those who are new to the trading industry and those who would like to try their hands on it, they may opt for online commodities trading first.

Future Market - "Think Big and Make Big Profit"

Future market is a central financial exchange where people can trade standardized future contracts that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. Futures contracts on commodities and financial futures are negotiated.

DESCRIPTION:

A futures contract is an agreement to buy or sell in the future a specific quantity of a commodity at a specific price. Most futures contracts contemplate actual delivery of the commodity can take place to fulfill the contract. However, some futures contracts require cash settlement in lieu of delivery, and most contracts are liquidated before the delivery date.

An option on a commodity futures contract gives the buyer an option the right to convert the option into a future, which uses future and option market commodities they trade. These users, most of whom are called "hedgers," want the value of their assets to increase and want to limit, if possible, any loss in value. Hedgers may use the commodity markets to take a position that will reduce the risk of financial loss in their assets due to a change in price.

Other participants are "speculators" who hope to profit from changes in the price of the futures or option contract. Some commodities include agricultural products, such as corn, soybean, barley, orange juice, cattle, pork bellies, coffee, cotton and lumber, and metals such as gold, platinum, silver and copper. There are a fixed number of financial futures that are included in negotiations in contracts with US Treasury notes and bonds. Negotiating in the futures market can be as exciting for an adult as riding on a roller coaster could be to a kid. There are overnight profits and losses that are of greater magnitude than those given in other financial investments such as stocks and bonds.

Consequently, investing in futures markets is within the riskiest investments.

BENEFIT OF FUTURE MARKET:

• Gain your investment.

• Go short in the market.

• Make an investment that tracks the entire market through one single transaction

• Speculate in movements in market prices or hedge against price exposure in a simple and expedient way

• As far as the futures market in farm produce is concerned, the farmer has a guarantee for payment and quality risk is avoided. It promotes storage and warehousing facilities and logistics facilities. It also increases the bargaining power of the farmers and enables decision on crop sowing and time of sale.

• Commission charges are small compared to other investments.

• All in all, futures are the perfect traders market.

HOW YOU INVEST IN FUTURE MARKET?

• First of all if you want to invest in future market, in my right opinion you should take advice from a good financial adviser company. Which is really can give you more profit in your invest. Financial adviser act as advisories for your investment, pension and financial plans. There are so many different advisers out there in the market place and each will come with their own personalities, views, opinions and experience levels. Do not be afraid to look around and do not settle until you feel comfortable with your choice of adviser.

• Here is a brief overview of what a financial adviser actually does:

• Make Planning and strategy.

• Give you right Investing options.

• Research on the financial statements.

• Clear all Question and doubt.

• Annual review

• They can recommend strategies that you can use to improve your financial situation achieve your financial goal out investment routes

• Many brokerage services, both traditional and online, offer futures and options trading services. For people just starting to trade, working with an experienced broker may help minimize some of the risk that often is associated with these two trading strategies. As you gain experience, moving to primarily online trading can help you minimize costs and speed trades.

• Before planning specific trading objectives, decide on either a bullish or bearish outlook.

• After making a general forecast, consult the price chart of the futures market you plan to trade. Look for patterns in the chart to plan entry points and price targets. This kind of research is called technical analysis.

The Precious Metal Achilles Heel

In the grand scheme of things, people have traditionally had more faith in silver as a currency than in paper fiat currencies.

Furthermore, since modern paper currencies are only backed by the creditworthiness of the authority issuing them, if that authority goes into default on its debt, the currency it issued could become virtually worthless.

Basically, in order for the fiat money system to keep going, more paper currency must be printed. Also, 'old money' like silver and gold must be kept at arm's length, both literally and figuratively, by the use of propaganda.

Ultimately, a lack of confidence will force this grand paper experiment into default as the essentially flimsy physical reality underlying fiat currencies is gradually exposed to the public currently being duped by it.

Silver Shines When Defaults Seem More Likely

A major series of defaults seems increasingly likely, especially given the LIE-bor gate scandal and the sovereign debt crisis in Europe. Countries around the world are having their debt ratings downgraded as government spending remains unrestrained by fiscal responsibility.

Another factor is the increasingly public exposure of the silver market's manipulation over the last few years. The price of silver has been kept artificially low by futures exchanges allowing short sellers to control whether or not physical delivery into a futures contract actually occurs.

Rather than actually having to deliver silver into a short futures contract, a government can simply print more money to pay for its losses should the price of silver futures rise.

Possible Default Scenarios

In the event of a substantial COMEX default, silver's price would soar mostly because of the scarcity of the metal relative to the underlying demand for it and the greater confidence that investors have in it relative to paper assets.

Furthermore, the exchange would probably set limits on position sizes and price fluctuations. Trading might also be halted or a sellers-only market established.

This sort of default scenario would seriously erode confidence in such one-sided paper futures markets as a way of setting prices for intrinsically valuable physical commodities like silver.

Price discovery for precious metals might gradually move to a more physical-based valuation system. Nevertheless, the retail sector would surge, and the demand for physical silver would likely determine its market value, at least for a while.

One could expect to see long lines with people buying and selling silver at the retail level. Governments might also place restrictions on precious metal holdings to avoid seeing their paper currencies devalue as a loss of confidence in paper assets grows.

Even if a metals futures exchange default is not the event that triggers the final stages of a loss of confidence in fiat money, the reactionary blow off as metal prices are allowed to move closer to a fair value equilibrium price will unmask the great fragility that has lurked beneath the surface of the manipulated paper silver market all these years.

Silver Will Remain a Store of Value

Insufficient supplies of physical silver could mean that the metal may not "flow" enough to become a de-facto currency in a default scenario.

Basically, using physical silver as a currency has some drawbacks, which include:

• An insufficient supply of above ground physical metal to cover massive currency circulation requirements
• As demand grows, the price of silver as a commodity goes higher
• It is consumed as an industrial and jewelers' metal
• Its market suffers from a lack of physical sellers
• Low mobility relative to paper and electronic currency
• Safe storage challenges

Nevertheless, silver does not need to circulate as currency within a country to be considered a form of money or to act as a store of value.

The fact remains that silver will continue to be a valuable, mobile, liquid, tradable and recognizable asset that is in short supply relative to its true underlying demand.

Agriculture's Profit Potential Is Growing Like a Weed

If you're on the hunt for massive gains, consider the fact that agricultural commodity prices have been falling. Falling prices offer buying opportunities! That's the reason why profit potential is growing.

As the global economic slowdown has churned along, economic progress has ceased. The commodity prices reflect the fact that we are bouncing along the bottom of a recessionary cycle.

Demand for most commodities has diminished. Commodity demand will, however, recover when the global economy begins to recover.

Whenever it does recover, agricultural commodity prices will skyrocket.

Many commodity traders are recognizing the opportunity and are now re-entering the market.

Few commodity traders enjoy the fame and respect that has been bestowed upon Jim Rogers. He co-founded the Quantum Fund with George Soros and retired in 1980 at the age of 37 having seen 4,200% growth in only 10 years.

In 1999, Rogers recognized and announced the now-famous "Super-cycle commodity bull market." He speculated on the precious metals when gold was trading near $260 per ounce and silver was trading near $4 per ounce.

With gold now trading over $1,500 per ounce and silver over $25 per ounce, most folks agree that he was right!

Significantly, Rogers believes that this Super-cycle will continue until 2020 to 2025 and that agriculture has lagged behind the other commodities.

He is now focused upon the agricultural commodities and predicts that he will make more from agriculture than he has from anything else in the past.

Coming from this particular billionaire, that's a big endorsement.

Investment and speculation capital tends to flow into sectors that offer the greatest potential rewards. Among commodities, the greatest potential rewards seem to be growing in the agricultural commodities sector.

Again, at some point, the global economy will recover and agricultural commodity prices will skyrocket from their present levels.

By speculating on agricultural commodities while prices are low, you will realize massive gains when the recovery materializes.

Most folks missed out on the major moves made by the precious metals and energy commodities over the last decade. That's because most folks ran away from the falling metals and energy prices of those days.

Falling prices, however, typically indicate buying opportunities for successful traders.

Of course, we should not be stopped by rising prices if proper research and analysis indicate that prices will go even higher. For example, I distinctly recall being told that I was crazy to buy gold when it reached $800 per ounce because it was at "all-time highs."

In this case, however, it is unlikely that you will find anyone claiming that commodity prices are near their highs. Most traders will admit that prices could indeed drift lower. If we are not at the bottom, however, most would agree that it is near.

So, how can you participate? There are a number of Exchange Traded Funds (ETFs) that enable the average stock trader to participate in agricultural commodities without purchasing options or futures contracts.

The present state of the global economy indicates that we are seeing extraordinary buying opportunities RIGHT NOW in the agricultural commodities sector.

Consider the global demand for food. It may increase and decrease slightly as people adjust their budgets to economic downturns from time to time, as we are seeing presently. Overall food demand, however, does continue to grow as the population grows.

The world's population has more than doubled from 3 billion in 1960 to now. It is near, if not over, 7 billion people today. The United Nations estimates that the global population will exceed 9 billion mouths to feed, less than 40 years from now.

While the population has been growing, the arable land available for farming has been declining as more former farmland has been developed to meet the residential and commercial real estate needs of a growing population.

Rising food demand and declining availability of farmland equals higher food prices.

Granted, all commodities will see substantial price increases when the global economy begins to recover. Agricultural commodities, however, should see the greatest gains due to the fact that they are so far behind the metals and energy commodities.