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Precious Metal Recommendations=================== Recommendation #1 =================== Historically, gold is priced about 16 times higher than silver, per ounce, on an average basis. In 1980, Gold topped out at $850 per ounce and silver reached over $50. A bear market then set in bringing gold down below $300 and silver below $5. It wasn't until 2002 that gold started to make its move. Silver also rose in price, but not in correlation to its historic relationship with gold. Will Silver begin to increase in price, and bring the current price ratio discrepancy closer to historical levels? There are several factors to consider. Many analysts believe that gold is primed to go even higher. If this is the case, silver will have to climb to very high levels to maintain historical correlation ratios. If gold tumbles, it will have to fall down below the $300 level to bring the ratios back in line. The likely scenario is, gold will fall slightly in price, and silver will rise. How much will silver rise? Silver has the potential to rise rapidly. It has done so many times in the past. It only needs to rise to $17 to give its investors a 20% return. This is a very realistic possibilty. Although I don't believe gold is going to rise to the levels that analysts project, I do believe that silver will rise a modest 20% or much more. I have isolated a silver investment that I personally believe will deliver conservative double-digit gains. =============================== ETF: iShares Silver Trust Symbol: SLV =============================== UpdateWhen I first made this recommendation, Silver ETF (SLV), the share price was sitting at about $125. As of today, February 27, 2008, the share price is sitting at $191.03, a very nice 50% gain.Silver was sitting at about $14 per ounce when I first made this recommendation. It is now sitting at $19.03. It still appears to me that silver has some room to run, however, since the share price has already risen 50% since my original suggestion, I would now exercise more caution in purchasing shares. Analysts insist silver will reach $30 per ounce, and it may, but I am not convinced. I would look for a retracement to about $17 soon. This of course, is only my opinion, please do your own research.
Disclaimer: I am not a registered investment advisor. Everything on this website is my opinion and put her for the enjoyment of my readers. I do not recommend making financial decisions based upon my opinions. I advocate doing your own research and making an informed decision. All information put forth on this website was obtained freely via the internet, radio and television. I do not have any contracts or deals with any financial newsletter of any kind. Income generated from this site is done through advertisements. I will always let my reader know if I hold any position on a recommendation I make. ================================================================= Precious Metals List |