Wednesday, July 11, 2007

The Silver ETF

I recommend entering the silver market. As with gold, when paper currency floods the market, the price of precious metals goes up. Consider this argument from silverstockreport.com:

"Silver has been consumed by industry. The world is running out of silver; industry consumes more than the mines produce."

"There's no room for any investment demand to enter the silver market without driving the price sky high. We've just begun to see a little bit of investment demand."

"The current ratio of silver to gold is 50:1, 50 ounces of silver will buy 1 ounce of gold. The historic ratio is 15:1, that means you can make 3 times your money owning silver, but if we do better than the historic ratio, due to the scarcity factor, we could make 6-10 times as much money in silver than in gold."

Gold will make you money; silver could make you rich. The newly introduced silver ETF, iShares Silver Trust (SLV), is the easiest way to get in on the action. It closed trading today at $128.45.

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