with the news out of Ireland that some sort of deal has been agreed to postpone a debt reckoning there, the markets reversed their bias for a stronger dollar last night. So what is the result of that?
--Stocks were higher. Silver is up 7% after making a two-week low on Tuesday. Silver is up 60% in the last twelve months, by the way—a sure sign that in the trenches of the real economy savers are hedging cash positions with precious metals.
Wednesday, November 24, 2010
Sunday, November 7, 2010
All that glitters is not just gold...
The fundamental reason for buying silver is that modern technology has countless significant uses for silver and a limited supply of it.
There is not the same demand for gold in technology. So silver wins on the demand side of the equation. Central banks own a huge amount of gold and frequently sell it yet they don't own silver.
Much greater gains can be gotten with silver.
The way the silver market has been going the silver breakout gains would be at least double and possibly triple the gold gains. We have seen exactly that in recent weeks.
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