It seems like these days everyone is talking about gold; gold commercials on TV, “we buy gold” signs at every corner, and of course stories in the news about what else, gold. Just today it was reported that gold demand is up 36% in just the second quarter. Why? Because gold is and always will be a currency and with all of the current economic problems, people want to hold real money. Which is exactly why we here at are buying silver, not gold. In our opinion, there is no comparison when you put gold and silver side by side as investments. Everything good about gold: real money, hard asset, precious metal, and safe haven, can also be said about silver. Silver of course is also real money. It’s been the common man’s money for thousands of years. The difference today is that silver is more than just money, it’s a key component for almost everything electronic, a catalyst for medicine, and vital to the production of plastic. In fact, silver as noted in our last trend update, is the rarest metal on earth when you look at current and future supply vs. future demand. So, while everyone is going for the gold, we believe the smart money will accumulate silver. Everyone is already talking about gold, which is good for silver investors, it gives us more time to buy the metal that’s not in the news. If you believe gold is going to go up, it is hard to imagine silver not following, in fact, as gold goes up, investors will be looking for an alternative. believes that alternative will be silver, causing a percentage increase in silver that will finally put this precious/industrial metal at a price that meets its fundamentals.

Looking at the technical indicators, silver has almost completed a major accumulation pattern. Meaning silver could be ready to have a huge move up breaking its 2008 high.  Silver fundamentals, technical indicators, and of course gold related reasons to buy it mean that we could really see a major move in 2010.

 For more information about silver, please see our Silver Trend article posted on August 19th.