August 13, 2010 – Why the Really Big Play is in Silver

Featured Trades: (SILVER), (SLV)


2) Why the Really Big Play is in Silver. Those transfixed by gold topping the $1,200 level again have been missing the real action in silver. The white metal has soared 24% to $18.46 since the February low, compared to a more modest 15% move for the barbaric relic, an outperformance of 1.6 to one.

I have been a raging bull on silver all year, grabbing you by the lapels and shaking you senseless if you didn't buy. It is nothing less than owning gold with a turbocharger. Silver gives you a nice double play. Its qualities as a precious metal are giving it a major boost from a weak dollar, always a risk that is out there. It is also an industrial commodity, which unlike gold, is consumed, and therefore gives you a call on the recovering economy.

If you don't think this move is real, check out the shares of the silver producers. Coeur D Alene Mines (CDE) has rocketed by 444% the 2009 low, while Silver Wheaton (SLW) is up a staggering 893% and Hecla Mining (HL) has soared by 512%. To accumulate .999 fine Silver Eagles or silver bullion, click here.

How long will it take to get to the old high of $50? William Herbert Hunt, who engineered the 1980 squeeze with his brother Nelson with a 100 million ounce long position that last took it that high, could tell you, but only from the grave.

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