By Sean Goldsmith in the S&A Digest:
Our editor in chief, Brian Hunt, passed along this note about silver this morning...
The interesting thing about silver is the metal is starting to trade a lot like "real money" in the past month. Since much of silver is consumed in industry, it often trades like an industrial metal... like copper or zinc. Investors and traders usually buy and sell it based on their expectations of global economic growth. Most people don't know this, but silver traded almost in lockstep with both oil and the S&P 500 this year.
In the past few months however, silver has soared, while the stock market and oil have languished. The S&P is barely up in the past two months, while silver has climbed 9% to reach its highest level since March 2008. Gold is near an all-time (non-inflation adjusted) high. What's going on here?
Our guess is that silver has again become chiefly viewed as a "hard money" safe haven, like gold. Despite the lull of bad news regarding U.S. deficits and a euro meltdown, these problems are still gurgling under the surface of the markets... and seasoned investors are accumulating more gold and more silver in anticipation of a potential crisis.
This is also driving the extraordinary move in junior gold and silver stocks. In a primary bull market for gold and silver, these stocks absolutely skyrocket. It's not uncommon to see these companies rise 100% in a month... or 1,000% in a year. As our friend and master speculator Doug Casey says, "you only need one" of these little moonshots to make an investment fortune.
For example, had an investor placed $25,000 into Phase 1 recommendation ATAC Resources when Matt Badiali recommended it in October 2009, he would now be sitting on a position worth more than $190,000.
Crux Note: Matt Badiali recommended three more junior miners in the latest issue of
Phase 1. To learn more about
Phase 1 and access Matt's new picks, click
here.
More on silver:
Forget silver bullion... buy these instead
An incredible BULLISH development for silver
Five trends could make silver the best-performing metal in the world
