November 5, 2010 – Silver Blasts Through to a New 30-Year High

Featured Trades: (SILVER), (SLV), (CDE), (SLW), (HL)
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4) Silver Blasts Through to a New 30-Year High.  Those transfixed by gold (GLD) topping the $1,368 level again have been missing the real action in silver (SLV). The white metal has soared 45% to $18.46 since the July low, compared to a more modest 18% move for the barbaric relic, an outperformance of three to one.

I have been a raging bull on silver for two years now, grabbing you by the lapels and shaking you until your dentures fell out if you didn't buy it. 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 my picks in the sector. Coeur D Alene Mines (CDE) has rocketed by 58% July, while Silver Wheaton (SLW) is up a staggering 75% and Hecla Mining (HL) has soared by 61%. To accumulate .999 fine Silver Eagles or silver bullion, click here.

All of a sudden, my $50 an ounce target is not looking so insane when I first made it two years ago. That is a mere double from here. How long will it take to get there? 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.