SPDBRNR – Eyes Wide Open
Sports, Politics, Financial Markets, Silver & More

Silver – Onward to New Highs

Silver is $38.50 as I type this…new yearly highs up over 20% now in 2011, after closing at an all-time quarterly high of $37.87 March 31st…besting the Q4 1979 close of $32.50. 

Today on CNBC Bertha Coombs talked of silver’s huge popularity right now due to its dual nature as a safety valve in crisis and inflation, while also being a major play on industrial growth in emerging economies with its myriad uses. She even mentioned its medicine uses. It took CNBC a while, but they finally get the silver story and are getting the word out. The Jan 1980 highs of $50 are mentioned a lot more too in mainstream media, silver playing catch-up to gold, currently 68% above (at $1,432)  its 1980 highs of $850.

Silver is essentially the perfect stock. When you own it, you are long multiple industries in multiple nations, a crucial metal for technology, while well-hedged against currency debasement, with no counterparty risk.  All your bases are covered, while silver’s large undervaluation ($90b gets you 1 yr mine supply, + 1.6b oz, all above-ground bullion stocks) remains.

I would expect that $90 billion number to get well above $200b to more accurately reflect silver’s supply/demand fundamentals as well as it’s monetary role.

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