The Precious Metal That Doubles the Power of Gold
The Precious Metal That Doubles the Power of Gold
Wednesday, 27 October 2010
If you bring up the subject of gold investments to a “respectable” Ivy League portfolio manager, he will likely scoff at the idea and quickly dismiss the idea of gold as a true investment asset class.
He’ll tell you that gold is a residual shadow of man’s barbaric side — a fascination with a shiny metal — a completely useless trinket…
I say, baloney! Call it barbaric if you want to… but gold still trumped almost any “traditional investment portfolio” over the last two-year, five-year and 10-year periods.
But here’s another precious metal I’m hot on right now that could trump gold…
There’s no smarter way to buy gold or silver
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Look at Silver’s Run!
I’m talking about silver… the only metal that is both precious and “industrial.” Since the 2008 low, silver has advanced from a price of $8.25 to well over $24 and looks very likely to continue its astounding gains.
The chart below shows a graphical representation of the performance of silver compared directly to the performance of gold…
One of the primary reasons for silver’s strong performance is the need for the precious metal in many different industries including:
- Electronics (silver is an excellent conductor of electricity)
- Solar power (silver’s reflective properties are unmatched)
- Photography (believe it or not, a significant amount of silver is still used in traditional film)
- Medical (silver has significant antibiotic properties)
With half of the world’s demand for silver driven by actual usage (in an economically challenged time period no less), it’s no wonder that the price of silver has outperformed gold to an astonishing degree.
And when the precious metal side of the equation kicks in, the spike in silver prices can be even MORE pronounced.
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Silver Miners Offer Exceptional Opportunity
There are a number of different ways to profit from the long-term bull market in silver. Depending on how aggressive you want to be, you might consider futures contracts, physical coins, options, exchange-traded funds (ETFs) or individual stocks.
The velocity of movement in the price of silver can really work to a nimble trader’s advantage, an we are intensely focused on finding the best trading opportunities with the least amount of risk.
I like playing silver miners as the best way to play silver’s rise. (By the way, investing doesn’t have to be complicated. Sign up for Smart Investing Daily and let editors Sara Nunnally and Jared Levy simplify the market for you with their easy-to-understand articles.)
Companies engaged in the process of mining silver are particularly attractive because of their twofold gains…
- These producers are seeing profits increase as the costs of producing each ounce of silver remain relatively stable, but the sales price for those ounces is skyrocketing.
- Most silver producers are sitting on large reserves of unmined silver resources, which become more valuable with every tick higher in the price of silver.
Silver miners are attracting attention in the investment world and are already experiencing sharp price increases.
But with the U.S. dollar still in jeopardy and investors seeking safe investments to protect the purchasing power of their capital, silver is likely to continue to advance — and I intend to capture significant profits along the way. There’s still plenty of room to run.
P.S. If you like the idea of playing silver but are looking for super-charged returns, I’ve just released a new strategy you’ll want to hear about. At this moment, a supply/demand gap of epic proportions is poised to send silver prices soaring. And while most investors scramble for silver coins and bullion, some smart folks have discovered a new silver investment that could return a 130-fold gain by Spring 2011. Follow this link to get in on the ground floor…
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