Buy Silver As Thailand Recovers From Floods

Don Vialoux uses seasonality, technical and fundimental analysis to making money in the markets. In his new column he recommends silver. Read it here.

Demand for silver is expected to exceed supply in early 2012 because of an unusual non-recurring event. Thailand is expected to recover from a major flood experienced in the fourth quarter. Thailand is the world’s largest assembler of electronic devices. Many of its electronic assembly plants were shut down by the flood. Demand for silver used in electronic components slipped briefly, but is expected to recover early this year.

The Thai floods have had an interesting impact on electronics prices. The floods stopped the manufacturing of many electronic parts and caused shortages. For example, hard drive prices had gone up 90% because of shortages. These prices spikes have caused some buyers to put off purchase until prices normalize. Now as Thailand recovers we can expect the pent up demand to create high demand. This should push up silver which is a key component in electronics.