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  • Invest in Silver Before Prices Climb Higher

    Silver prices are up this week on hopes of a third round of quantitative easing, or QE3, reaching their highest level in four months.

    U.S. Federal Reserve Chairman Ben Bernanke on Friday hinted at further central bank action and silver prices jumped more than 3%. They've continued climbing this week to over $32 an ounce.

    Speaking at the annual Jackson Hole, WY economic symposium, Bernanke expressed concern about the U.S. labor market stagnation and said yes, he is open to more quantitative easing to assist the economic recovery.

    Details weren't included but it didn't matter: Bernanke said the magic words.

    Silver has jumped on the bull train thanks to inflation concerns and talks of quantitative easing by central banks. Buyers increased in volume after the Aug. 22 release of Federal Reserve minutes, extending a rally that had been kicked off by signs of European solidarity.

    It's not just U.S. news that's keeping the run going. German officials, including Chancellor Angela Merkel, are starting to sing a different tune for the European Central Bank's (ECB) stimulus activities. This may help reduce borrowing costs for debt-ridden Eurozone nations.

    All these signs are reasons to load up on metals before prices take off higher.

    "From now on, this is a dip-buying market," David Govett, head of precious metals at the brokerage Marex Spectron, told The Financial Times. "Yes, there will be setbacks along the way, but fundamentally the market is now in bull mode."

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  • The Dumb Money Hates Silver, it’s Time to Go Long

    Speculators hate silver...

    For the past year, the positive silver headlines have been few and far between.

    Ever since the poor man's gold peaked near $50 in April of last year, it's become a despised metal.

    Admittedly, it's been languishing near $27 since early May not far from where it was for the first time - in this bull market - back in late 2010.

    But as I'll show you, right now a number of technical, seasonal, and sentiment indicators are pointing upwards for this volatile metal.

    This could well be the critical turning point silver investors have been waiting for. One of these indicators is the resilient price of gold.

    Let me explain.

    The Silver/Gold Ratio

    Silver has always pretty much been gold's lapdog and on a relatively short leash at that.

    As a rule, silver prices usually follow the direction of gold. But as long time silver investors recognize, the moves are amplified both on the downside and the upside. Silver prices are simply more volatile than gold prices.

    As for gold, since it peaked about a year ago, it seems to be drifting aimlessly in zombie land. For the better part of the year it's been consolidating about 16% below its previous peak of $1,900.

    Today, at $1,600, gold is back to levels its first saw a whole year ago. What investors need to pay attention to is the gold to silver ratio.

  • Summer Slump in Silver Prices Closer to an End

    Silver prices have suffered this year as the white metal has lost its luster as a safe haven investment, but the pullback has slowed and may be bottoming out.

    Cash has gained some allure over metals, but according to FX Empire, as bullion prices near support levels buying interest has been on the rise.

    In July, silver prices broke out from a three-month price slump and closed up 1.1% to $0.302.This came after fourth months of consecutive losses: 0.5% (June), 10.5% (May), 4.5% (April) and 6.2% (March).

    Silver prices ended last week on a positive note, up $0.54 to $27.69. Futures and options players made bullish bets at the end of last week on the commodity based on speculation for additional stimulus from the Federal Reserve.

    This week, silver prices have continued their rise. The metal's up 0.3% to $27.84 an ounce.

    Can this uptrend continue? Here's what to expect from silver prices in the near term.

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  • How To Buy Silver: A Guide To Today's Top Silver Investments

    As precious metals go, silver may not have quite the same mystique as gold.

    But let's be honest: The "white metal" has its backers, too.

    In fact, when Money Morning published its "How to Buy Gold" special report just a few weeks ago, one of the biggest questions that we received in response was: "When can you do the same for silver?"

    That's just what we've done here. In this special report, we show you how to buy silver.

    Silver: The "Other" Precious Metal

    Although gold possesses the greatest allure of precious metals, silver has a longstanding tradition in many cultures - a tradition that in some cases reaches back thousands of years. Nearly 2,500 years ago, for instance, China was the first to use silver as money.

    Here in the United States, silver alloys were still present in some of our everyday coins as recently as 40 years ago. Today, however, silver is no longer viewed that much as a monetary metal. But that's because about 40% of silver is used for industrial applications.

    The physical silver market is small, with annual demand of slightly less than 900 million ounces.

    Since the financial crisis of 2008, silver prices have increased by 300%.
    And that's only the beginning. Silver is on the verge of a massive "short squeeze". The last time something like this happened, investors pocketed upwards of 195% in just a few months - but more on that later (Or you can get a sneak peek of our new silver special presentation right now. You can find it here.)

    An important metric to understand and watch is the silver-to-gold ratio. It tells you how many ounces of silver it takes to buy one of gold. Historically, that ratio is 16 to 1. On this basis alone, silver should be much higher right now.

    But perhaps a more realistic level, at least in the short term, is the ratio of silver-to-gold since the start of this bull market back in 2000. That ratio has been about 50-55 ounces of silver for one of gold. Even this more conservative estimate of silver prices vs. gold provides an excellent opportunity for investors to cash in as gold prices continue to rise.

    How to Buy Silver

    Like gold, silver investments can be made in a variety of forms. Let's take a look at some of the most popular.

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  • Special Report: How to Buy Silver

    Silver prices soared as high as $50 an ounce last year before experiencing a brief correction that took it back below $30.

    However, despite this blip, mounting inflationary pressures, a weakening dollar, and emerging market demand will see silver retest its record highs in 2012. In fact, this time around it could even climb as high as $150 an ounce.

    The white metal has already gotten off to a strong start this year, with silver for March delivery surging 5.9% on Tuesday to settle at $29.57 an ounce - the biggest one-day gain in months.

    And it's just getting started. So if you don't want to miss the next big bull-run, you might consider the following instructions on how to buy silver.

    How to Buy Silver

    Like gold, silver investments can be made in a variety of forms. Let's take a look at some of the most popular forms.

    Physical Silver: Physical silver can be purchased in a variety of sizes and weights, which determines its price. Most typical are 1.0 ounce silver coins, like the Austrian Silver Philharmonic, the American Silver Eagle, and the Canadian Silver Maple.

    Their prices vary slightly due to differences in silver purity, with the Silver Maple being the highest at 99.99% pure. You'll pay about a 16% premium over the silver price for coins due to the cost of fabricating them.

    Another popular option is the 100-ounce silver bar, which commands a 5% premium over the spot price of silver.

    These coins and bars are essentially bought for their silver content and not as collectibles. If you're looking to build a silver stash - either large or small - bullion dealers may be the easiest way for investors to do so. But do your homework first, and check them out before you buy. Also, avoid paying more than the premiums I noted above for either coins or bars.

    Some investors wonder if they should buy smaller denominations, like 1/20th, 1/10th, , or ounce (gold) coins. The thinking goes like this: If ever these coins need to be used to transact and make payments, one would want to have smaller "amounts" to carry around. That's a valid rationale. Even so, keep in mind that you'll pay a premium to the actual silver content, since each individual coin has to be fabricated. I believe that, should we ever get to that point, you could just convert a one-ounce coin or bar into a number of smaller coins, and pay the premium, or perhaps receive whatever else is being used for transactions (a new currency?) in return.

    A few dealers that have an established reputation are:

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  • Silver Options Strategies: How to Pay a Bargain Price for the White Metal

    In last Wednesday's Money Morning special report on silver, several of our financial gurus projected higher prices ahead for "the other precious metal." Since then, silver has climbed about 5% -- hitting $43 an ounce yesterday (Monday). Silver is now nearing its record high of $50.35 set in January 1980.

    For those with significant profits already in hand from silver's hot streak, Money Morning has offered some strategies for protecting those gains against a near-term pullback. But if you haven't yet jumped on the silver bandwagon, don't worry. You can still climb aboard without risking too much.

  • Silver Options: How to Protect Your White Metal Profits

    Turn on the television or flip through the pages of any major newspaper, and the top stories will be either the stock market's unrelenting rise in recent days or gold's climb to yet another record high.

    Without question, both are worthy of note - but the real star over the past eight months has been silver.

    Stocks, gold and silver all hit cyclical lows during the final week of August 2010. The Dow Jones Industrial Average bottomed on Aug. 26, closing at 9,985.81, while June Comex gold futures closed at $1,223.30 an ounce on Aug. 24, and July Comex silver contracts settled at $18.121 per ounce on Aug. 23.

  • Silver Investing Strategies: The Outlook for the "Other" Precious Metal

    Silver rose as high as $41.98 an ounce this week - a 31-year high - and has remained above the $40-an-ounce level. That means that the "other" precious metal is up about 32% so far this year - and has more than doubled since Money Morning recommended it to readers in early September.

    But where does it go from here? And how should investors position themselves? To answer those questions - and others - Money Morning brought its top "gurus" together for a roundtable discussion.

    For this discussion, Money Morning Executive Editor William Patalon III and Associate Editor Kerri Shannon sat down with Money Morning Chief Investment Strategist Keith Fitz-Gerald, contributing editors Shah Gilani, Martin Hutchinson and Peter Krauth, and Contributing Writer Jack Barnes, the author of our popular weekly "Buy, Sell or Hold" feature.

    The consensus: The long-term outlook for silver remains bullish, and a projected near-term pullback might even be healthy. But certain stocks and exchange-traded funds (ETFs) will likely be winners, and certain metals dealers are more reputable than others.

    What follows is a transcript of that silver investing strategies roundtable discussion:

    For our forecast for silver prices - and our top profit plays - please read on...

  • Special Report: How to Buy Silver

    Forecasting prices for anything can be tricky. And a precious-metal commodity such as silver is no exception.

    With gold holding the leash on its "lapdog" - silver - the performance of the so-called "yellow metal" holds the key to silver prices in the New Year.

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