Silver is out performing just about everything on this planet with 45% gains since January 1, 2011. If you take the price from it’s low of $26.87 at the end of January silver has gone up 67%. These numbers are remarkable yes silver is still only 33 to 1 ratio to gold. While it is down from the 63 to 1 ratio of Jan 1, 2010, silver is not near its traditional 16 to 1 it enjoyed during the days of the gold standard.
Ananthan Thangavel of Lakshmi Capital was quoted in Forbes, (I’m) looking for another 25% run to $50 an ounce in the next year as silver is being taken out of world supply by physical buyers and the tremendous growth of the silver ETFs. This would match last years performance of 87% for the year. There are even some experts saying silver could see $100 by the end of the year. That tremendous of a move forward could lead to a major sell off in the beginning of 2012.
For now silver is the hottest part of the metals market driven by the declining Dollar, inflationary fears & demand globally. None of these 3 drivers look as if they will be slowing in the near term making silver a long term winner. Most Tangible Asset Portfolios have a minimum 30% silver investment while the remaining 70% is divided between gold & rare coins. Buy silver while it is still cheap.
Read further: Forbes – Silver Could Rise Well Above $50