Friday, March 4, 2011

Silver breakout cont'd

The price of silver in US dollars has now made a 25% gain since the first of February. As mentioned in my last post on the same subject, this has an even bigger impact on junior silver miners: in the same time period, Canadian Zinc is up 67%, and U. S. Silver is up 36%. The conservative silver bulls' predictions have already come to pass: silver is already trading well over $35 per ounce. A lot of other bulls are still targetting $45-$75 by the end of the year.

Always remember that precious metals should not be considered an investment. They only "grow" relative to the collapsing purchasing power of the dollar. In other words, precious metals retain their true value, and thus, they can inflation-proof your savings. As I've been saying for a long time: convert your dollars to something else now, before they lose even more purchasing power. Heck, go buy a half-dozen gas cans and fill them up with gasoline at the current low prices. Inflation is hitting us in a big way, despite what the talking heads on the idiot-box say, so every day they convince you to hold onto your worthless paper dollars, is another day you are losing money.

In the interest of full disclosure, I own silver bullion, CZICF, and USSIF and have no intention of selling any of them any time soon. I don't have gas cans full of gasoline, but I may soon.

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