Well, well, well. For all the naysayers that predicted doom and gloom for silver, they may have to wait a wee bit longer, as silver gaines $.726 to close at $32.296/ounce, near a 31 year high. Gold did not perform as well, but it, too, finished on the upside, gaining $3.50/ounce to close at $1388.60/ounce. Now that silver has broken out of the charts on the technical sides, the economists, and analysts are predicting $60/ounce silver by years end.
Many well known analysts, such as Strategic Investor Doug Klass, who also is a regular on CNBC, believes, as do many technical traders and economists, that the equities markets are due for a crash sometimes in the very near future that will affect not only stocks, but muni bonds also, as the financial condition of many cities and states are much more fragile than the actual figures would indicate. Much of this weakness is showing up in the underfunded or unfunded public service pension plans. When the analysts put all three together, it has the ingredients for a “perfect storm.” which leads to triple threat to the marlet, but is positive news for the hard asset currency metals—Gold and Silver.
Silver is still considered by some to be the “Investment of the Decade”, and the National Inflation Association actually called it just that. Many other analysts, traders and economists have made it their number one trade recommendation for the short term, possible leading to the long term.
Gold and Silver coin dealers are doing an incredibly brisk business, as coins are increasing in price more than the underlying metals. They do sell at a premium to the metals price, but the rare coins are definitely rewarding their owners with record prices and profits. Silver coins are more affordable and quite simple to take delivery of and keep safe, without havin to use Bank Safe Deposit Boxes. Many fine Gold and Silver Firms abound, just make sure to check the credibility of the ones you choose. The investment in silver coins, even at this level, would be a fantastic hedge against the hyperinflation that seems to be inevitable, no matter how many Quantitative Easing Programs the Fed Injects into the market and upsets the Global financial markets balances.
With all the global unrest, it would seem likely that the hard assets would be likely to rise today, as well as German Bonds and the dollar will most likely, continue it’s downward slide. Advice: Buy Silver