Silver

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Silver is a tradable commodity that is usually considered side-by-side with gold as one of the two tradable and investible precious metals asset class that previously underpinned the value of the U.S. currency. Silver futures and spot contracts are traded OTC and on commodity exchanges like the New York Mercantile Exchange while some investor buy shares in mining companies for exposure.

Silver lining

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Several investment analysts and commentators have recently become particularly bullish on precious metals in general and silver in particular as the fears of more currency devaluations and higher inflation rates worldwide takes hold among traders and investors. Michael Kilback of Investmentscore.com says silver is undervalued compared to "paper" assets like stocks, adding that the metal is currently in both high demand and short supply.[1] Melissa Pistilli of Silver Investing News says paper money has been devalued following the recent credit crisis, leading some analysts to argue that silver, along with gold, could become akin to, though never fully replacing, government-issued currency in future.[2] Similarly, Robert Kiyosaki of "Rich Dad, Poor Dad" fame advocates emulating famed investor Warren Buffett and buying and holding silver as an alternative to holding a devalued U.S. dollar.[3]

Dig, baby, dig

Stock-watching website Seeking Alpha's silver-market analyst advocates investing in silver-mining shares to best capture the metal's likely appreciation in future.[4] Seeking Alpha recently rejigged its portfolio of recommended stocks to place more weight on larger specialist silver miners and producers. The site predicts an average price of $18 per ounce for silver in 2009 compared to the Q3 2008 average of $12.37.

References

  1. Silver Investing When Everyone Else is Panicking. Investmentscore.com.
  2. Inflation to set silver back on track. Silver Investing News.
  3. Investing: Go for Gold and Silver, Not Green. Yahoo Finance.
  4. Investing Strategy for Silver Mining. Seeking Alpha.