Schizophrenic Silver - 3 September 2010

Industrial commodity or monetary asset? It doesn't matter according to this chart...

IF YOU OWN gold or Silver Bullion, today's chart is a reason to smile, says Brian Hunt in Steve Sjuggerud's Daily Wealth.

The price of gold has displayed major reluctance to decline over the past year. There is simply too much interest from Asia and huge institutional investors, so that budding declines are overpowered by waves of buyers. This brings us to a recent buying wave for gold's precious-metal cousin, silver.

Silver is a schizophrenic asset. It is viewed by some folks as a "real money" safe haven like gold. But it's also used in industrial production. So it tends to trade in line with economically sensitive commodities like copper and crude oil. Here's where it gets interesting...

The recent terrible job and manufacturing numbers have put new recessionary concerns on the table... which has clobbered stocks and crude oil. Silver however, has held like a rock. And just yesterday, it "broke out" to a new two-month high. This is incredible price strength. And if the US government attempts to "goose" the economy, we will see much, much more.

Buying Silver for your portfolio today...? Make it cheap, simple and ultra-secure at BullionVault...