Off track but how`s silver doing?
Silver hit $21.50 last week, a 30 year high. It’s doing very well, thanks!
Silver is already approaching $21/oz. Its surge the past week is just as fast as gold.
It’s easy to see how gold’s performance could be overshadowing the impressive gains also being posted by silver. But ignoring silver today in favor of gold could wind up costing you dearly.
I’m not saying to ignore gold. That would be crazy in light of the probable debasement of the U.S. dollar, which should keep gold surging to new all-time highs.
But you need to consider investments in silver because of the leverage the white metal has on gold.
It’s important to remember that – in the long run – the performance of silver depends upon the performance of gold. Silver gains typically lag those of gold, but they can also strongly surpass them. And in a drawn-out bull market, a significant portion of gains will be made near the end of the run. So if you’re serious about adding silver to your portfolio, make patience your friend.
Silver has yet to set any new all-time highs, but at roughly $21 an ounce, it’s already just broken its 2008 bull-to-date high of $20.79. When it hit that level in 2008, gold was setting a price record, breaking the psychological barrier of $1,000/ounce for the first time ever.
And having just breached the $21-level recently, momentum traders are likely to drive new silver buying.
But silver’s a funny animal, especially since it has both industrial and monetary attributes. Plus, much of the silver produced today is a byproduct of the production of such base metals as zinc and lead. So its supply isn’t always a function of demand. A lot of the silver supply is used up by industry, so the price of silver can often track the broader markets.
That’s why its price action of late is so intriguing – and revealing.