Silver Monthly Recap for March and Q1-2012

Q1 was a bullish quarter for silver.

Gold fell from $1,770 per ounce to $1,662 in the month of March – a 6.1% drop. Silver fell from $37.23 to $32.97 – a decline of 11.4%. Nevertheless, both precious metals had good first quarters of 2012, with gold gaining 5.6% and silver gaining 17%. Silver continues to look like the best investment fiat money can buy.

Stocks fared better than precious metals in March. The S&P 500 gained 3.1% for the month; the Dow gained 1.3%; and the Nasdaq gained 4.2%. All three major indices hit multi-year highs in March, and all three closed the month above important thresholds: 1,400 for the S&P; 13,000 for the Dow; and 3,000 for the Nasdaq.

For the quarter, the S&P gained 12%; the Dow gained 2%; and the Nasdaq 4.2%. This put the S&P above gold’s 5.6% gain, but below silver’s +17% quarter. The dollar began the quarter at 0.7727 euros, and closed March at 0.7471 euros, losing 3.3% for the three-month period. Thus, all of the Dow’s and most of the Nasdaq’s gains were eaten up by this loss of purchasing power.

The top financial stories of the month were:

The other news of significance to gold and silver buyers was the ascension of Mitt Romney to “presumptive GOP nominee.” As the only Republican candidate in opposition to auditing the Federal Reserve, the most liberal and fiat-money friendly of the candidates, and the least distinguishable from President Obama, this is probably bad for the economy – but it could be good for precious metals buyers. There’s also the rumor/allegation that Romney may be, or may have been, working with Ron Paul. Would this be good news? It’s hard to say.

What is clear is that gold and especially silver continue to be strong investments – and they will be no matter who is in the White House.

Q1 was a bullish quarter for silver.