Wednesday, May 9, 2007

Silver Getting Ready to Move Higher

Silver is getting ready to move higher very soon. At least that is what I believe. Silver and Gold have been consolidating their large gains for a long time now and appear to be on the threshold of major moves upward.

It is interesting to note that according to the Resourse Investor, the Silver ETF has already taken 15% of the world silver supply off of the market. This is pretty huge. I don't know if their numbers are correct or not, but the point is that Silver is scarce and getting more scarce.

A second Silver ETF was started in Germany recently. This will take more silver off of the market as well. The last time silver started a major run up from a breakout of a triangle pattern, it moved up 100% over approximately 6 months.

This time may be no different. Physical silver and gold are the safest way to own the metals. Buying an ETF theoretically gives you the same result, but some question wether or not the silver actually exists in the ETF or if they are playing a paper shell game.

Either way, for the next several years I would think either would be a safe bet to own. If you don't have any exposure to Silver or Gold, now is an excellent time to add a position to help combat the loss of purchasing power of the U.S. Dollar as it's value is continually inflated away with large sums of electronically created "Money".

Hang on..... this could be fun!