Summary
Gold and silver have been recognized as stores of value for thousands of years. However, in 2004, silver outperformed gold. While the price of gold increased approximately 6% from the last day of 2003 until the last day of 2004, the price of silver increased more than 15% during the same period. Going forward, there are several reasons silver likely will continue its position of strength. One of the most bullish factors is simply that demand outstripped supply for 16 straight years. The largest use of silver comes from industrial demand, jewelry/silverware and photography, in that order. The industrial portion of the market is growing at about 2% per year. Silver, more than most commodities, exhibits a behavior of going parabolic for approximately three trading days before the intermediate top is reached. If the parabolic move coincides with a Commitments of Traders Report that shows large short open interest for commercials, a favorable entry point may follow.
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Extract
Silver Shining Brightly
Without a doubt, most investors, if they could, would only employ investment strategies that maximize their profit opportunities, minimize their risk and take little time or effort. Call it human nature. Call it wishful thinking. Call it pure fantasy. We've all at least hoped for such a dream investment.
The truth of the matter, however, is that such dream investments do exist - with hindsight. If you had, for example, bought into the Japanese markets in the early 1980s, rode through the ups and downs an...See the full content of this document
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