Investing in Silver: Three Ways to Profit From the Projected Breakout

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The financial media may be focusing on gold, but it is the breakout of silver that will be the big precious metal story of the months to come, according to a new article in Money Morning.

Silver is trading at just under $20 an ounce right now. I think it could hit $50 an ounce by the 2012 presidential election, which would represent a 150% move from here

The financial media may be focusing on gold, but it is the breakout in silver prices that will be the big precious metal story of the months to come, according to a new article in Money Morning.

“Silver is trading at just under $20 an ounce right now. I think it could hit $50 an ounce by the 2012 presidential election, which would represent a 150% move from here,” says former hedge-fund manager Jack Barnes.

Investors who aren’t convinced only need to look a little closer at the numbers:

·    While gold, a leading indicator for silver prices, has established a new record nominal high price, silver has yet to do so in U.S. dollars.
·    However, silver has set a new nominal price record in other currencies – such as the Indian rupee.
·    The ratio between gold and silver is high, meaning that silver is cheap compared to gold.
·    Silver has traded as low as 17-to-1 during the last bull market.

The indicators are all pointing to a breakout in silver prices.

Plus, silver has something that gold does not: Massive and growing industrial demand. Silver has the highest electrical conductivity of any element and the highest thermal conductivity of any metal – making it a critical component in solar-cell production, as well as a flurry of other industries. This is what will really catapult silver prices in the coming months.

But, the window to get in on silver’s historic rise is rapidly closing.

“While silver is currently cheap in comparison to gold, the white metal is also currently moving more quickly than gold. A week ago, for instance, silver was up 6.6% in a 30-hour window. During the same time frame, gold moves about 1%,” says Barnes.

To find out the three best ways to add silver to your portfolio, check out Jack Barnes’ latest article on Money Morning: Investing in Silver: Three Ways to Profit From the Projected Breakout.

**Please feel free to repost this story on your website. Please include a link to the original article on Money Morning.

Money Morning is an online financial news site dedicated to showing investors how following global trends can help them profit ahead of the crowd.

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Jennifer Johnson
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