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You Heard it Here First: Silver's 30-Year High is Just the Beginning

[Editors Note: For detailed investment strategies on how to play the surge in silver prices, take a look at Money Morning's 2011 Outlook report on the subject by clicking here.]

The price of silver today (Monday) surged above $30 an ounce for the first time since 1980, after U.S. Federal Reserve Chairman Ben Bernanke indicated that further quantitative easing (QE) could be on the way.

Silver futures have gained almost 70% since August, when expectations of more QE were first discussed. Since then, the Federal Reserve has set about purchasing $600 billion of U.S. Treasuries and the Fed Chairman said on Sunday that more debt purchases are "certainly possible."

The result was a rally in precious metals, which played host to investors looking to preserve their wealth against further depreciation. The price of silver topped $30 for the first time since 1980, soaring as high as $30.09 an ounce in afternoon trading.

But that's just the beginning.

Money Morning Contributing Editor Peter Krauth recommended buying silver on Sept. 1 when "white metal" was trading at about $19 an ounce. More recently, however, Krauth on Dec. 2 said silver had the potential not just to break the $30 an ounce barrier, but climb significantly higher.

"I believe we're looking at a target price for silver of $38 an ounce," said Krauth, citing the Fed's quantitative easing policy and the oft-overlooked sliver-to-gold ratio.

Gold also rose today with a surge into record territory. The "yellow metal" gained $9.50, or 0.7%, to $1,415.80 an ounce on the Comex division of the New York Mercantile Exchange (NYMEX). It earlier traded as high as $1,422.40 an ounce.
The metal last closed at a record on Nov. 9, when it settled at $1,410.10 an ounce.

Action to Take: If you would like some additional insights on strategies for investing in silver, take some time to peruse some of Money Morning's recent research reports on this very topic. For instance:

[Editor's Note: Peter Krauth, a frequent contributor to Money Morning, is the editor of the Global Resource Alert, a private advisory service that focuses on precious metals, energy commodities and other natural-resource-related topics. Krauth spent two decades as a market analyst and portfolio advisor, and has covered all the commodities sectors, including gold, silver, coal, alternative energy and agriculture. He even makes his home in Canada – to be closer to the action. And several of his recent predictions have generated a genuine Internet buzz.

To find out more about commodities, or the Global Resource Alert, please click here.]

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  1. Scoremore | December 8, 2010

    If you look at those 1 million jobs created he speaks about, you will find the vast majority of them were in the retail, healthcare and fast food industry. In other words, service sector which is NOT a skilled job, nor does it require a college degree.

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