What Moves Up Three Times Faster Than Gold?
Source: SilverSeek, Andrew Mickey (5/27/09)
"Silver has a much brighter future than gold."
Treasury bonds are quickly falling out of favor. The yield on 10-year Treasury bonds has climbed from 2.5% to almost 3.5% since March signaling inflation fears and an unwillingness to fund ballooning government borrowing.
Gold is hot. Gold prices are back on the rise and gold stocks have done even better.
Yes, the long-run trend for the dollar is down as the Fed keeps printing more and more of them and monetizing government debt. And yes, the prospects for gold get brighter with each passing week.
It's going to take a few years for all this to play out. And the window of opportunity is still wide open to buy precious metals, real assets, and assets not denominated in the dollar (like ADR's).
That's why, despite the strong interest in gold at the moment, I encourage you to continue to look for value in the sector. Right now, there seems to be some exceptional value in an asset which is so undervalued, it could outpace gold by 400% or more.
I'm talking about silver.
In the past few weeks gold has been getting a lot of attention. With all the big money finally taking a liking to gold, the attention is justified. Remember, a turn in the big money's attitude towards gold must happen before gold can break through the $1,000 mark and stay there.
The excitement surrounding gold's surge has only pushed silver further onto the back burner. Gold is hot and silver is—in a relative sense—not.
So if you want to find an investment that isn't so hot but still has a lot of potential in an inflationary environment, look at silver. When you do, it won't take long to realize silver—at current levels—could easily trounce gold in the months and years ahead.
That's right. Silver has a much brighter future than gold.
Now is the time to buy precious metals and precious metals miners for your portfolio. Right now, with the gold/silver ratio indicating silver as undervalued and gold a hot topic, silver is a bit more enticing.