Silver: The Best Commodity Investment in a Stimulus-Driven Slow Recovery

Irfan Chaudhry submits:

Precious metals outperformed most asset classes over a 3, 5 and 10 year period. Silver was a little late to the party. Silver is a business cycle sensitive investment against gold, which is a fear / value / wealth trade. Silver fell to its lowest level relative to gold in early 2009 as the silver price went as low as $8.92, which was 84th of an ounce of gold. However, as the business cycle turned, it became one of the best performing assets in 2010. This outperformance looks set to continue in 2011 due to the very bullish fundamentals. Many silver price predictions are quite aggressive as insiders forecast silver prices to range from US$30 to US$50 / ounce in 2011. The facts and fundamentals which drove silver prices from US$4 / ounce to the current price of US$27 / ounce remain in place. The question is, will silver rival or surpass that of the 1970s inflation adjusted price?

By admin posted about 1 year ago

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