Silver's Strength in 2011

Is the world economy gaining strength? Probably. Is the world hesitant on the US dollar? Probably. Is there something that benefits from both scenarios? Yes. Silver. Known as the poor man’s gold and often relegated to the ‘lesser’ title, silver is breaking out.

It is now 2011 and on the first trading day of the year silver hit US $31.275 an ounce on the Comex. It closed at $31.085. Slowly but steadily, this metal is moving upwards. Benefiting its own cause is its versatility. Aside from being a precious metal and a countermeasure to the declining fiat currencies of the world, silver is also an industrial metal. As gold is used almost exclusively as an investment (coin/bullion) or decorative (jewelry) medium, it cannot benefit from the industrial side. However, platinum and palladium can follow silver’s footsteps.

Silver is a natural biocide and used in medical tools. It is used in batteries and although waning in its use in photography, still has a place. It is in batteries, mirrors, ball bearings and catalysts. One would be surprised to learn of silvers place in the production of plastics.

Commodities are gaining strength with silver leading the way on to fronts. Most analysts are projecting silver to hover between the $30-$35 range then break out. Taking that range with caution, silver still has about a 15% upswing just to reach the max. As it has passed the threshold of the $30 an ounce level, we will see if it holds. If it does, the aforementioned range is very probable. $50 silver could very well be possible. Those that thought $1400 gold was possible were also called crazy!

For a final contemplation, silver is affordable. The vast majority of us are living either hand to mouth or one step from it. Gold is expensive. $1400 is not a wonton investment in an ounce of something, and few can afford it. However, $30/$35 is much more ‘doable’ and is in financial accessibility to the average person.