Silver Is Still Cheap- Buy It While You Still Can

Both gold and silver provided some excellent returns last year. In the month of December the silver performance was tremendous. A strong December finish gave silver an outstanding 84 percent return for 2010. Gold recorded its 10th straight year with solid positive returns. The question is, where do we go from here?

In the last week or so, the Comex was forced to admit that there were only 170,000,000 ounces of silver, but there were 720,000,000 ounces of silver that were under contractual obligations. Four individuals demanded delivery of 1,000,000 ounces of silver in late December. Perhaps this is one good reason for December's strong finish in silver. The U.S. Mint had the largest in history monthly sale in December of 2,220,000 ounces of silver. In the first 12 days of January, 2011, the U.S. Mint sold 3,407,000 ounces of silver. The demand for silver is still very strong!

So with the strong surge the silver experienced towards the end of next year, why is silver dropping off today? Of course no commodity or investment goes straight up. The correction that is now under way in silver for the long term is very healthy. While both gold and silver been in corrective mode this month, they've only declined marginally while shedding the speculative "hot" money that in fact, continues to reside in other markets. Moreover, as the economic recovery stagnates and more monetization is forced on the US and other governments, the bull market in silver and gold will resume.

Silver is often viewed as "poor man's gold", true currency that goes back 5000 years. With the government debt as high as it is in the U.S. and the rest of the world, silver will indeed hold much value as money.

Besides the fact that silver is a true hard currency, silver also has numerous industrial uses. Most of the industrial use is cutting edge for our future. There are 1000's of ounces of silver used for anti bacterial purposes for clean drinking water, food and medical use. Silver is also used extensively in cell phones and most electronics. Solar energy uses a great deal of silver as well. In all cases, unlike gold, silver is used and depleted and is not recoverable. The demand side of silver is very significant. There are some statistics from the U.S. geological studies indicating that just with the current demand for silver, all known mineable silver will be consumed in just 29 years. This is very bullish for silver in the long term!

So while the speculators and traders are today trying to buy and sell on the dips of the market, the real question might be can you get your hands on some? If only a small percentage of the public wakes up to the upside of silver, money will come out of stocks and bonds in favor of the premier hard assets, gold and especially silver. At today's price silver is cheap. Get your hands on some today while you still can!


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Silver today represents the greatest investment opportunity of a lifetime. Our advisors are constantly analyzing and monitoring global trends and conditions. Using that information, we keep our clients well positioned in the safest and most financially rewarding segments of the gold and silver market.