Prediction: Silver at $35/oz. within 2 years

Dr. Michael Berry, former Wheat First Professor of Investments at James Madison University and an Assistant Professor of Business Administration at The University of Virginia, wrote an article on gold prices published on Forbes.com November 21, 2009. The article was primarily about the price of gold; however, he had some interesting things to say about the price of silver. Silver interests me more because I can afford to buy silver and I think it is undervalued compared to gold.

Dr. Berry has been a strong advocate of holding both gold and silver during times of economic turmoil, and that is why you must still hold core positions in gold and silver now. He stated n the piece, "The steep decline in the dollar after March 2009 appears likely to continue under the lavish spending plans of this Administration and Congress. As long as Washington attempts to print its way out of its debt-induced predicament and the Obama Administration and Speaker Pelosi’s House are determined to run multi-trillion-dollar deficits for universal health care, these scenarios are likely":

"Gold will appreciate over the next two years toward the $1500 mark.

Silver, which in his view, is particularly undervalued will appreciate toward $35.

The current eight-month bear market equity rally will stall, and

Asia, and particularly Chinese citizens, will seek safety in a dollar-for-gold and silver trade."

To read the entire article go to: http://www.forbes.com/2009/10/21/gold-bull-run-markets-commodities-michael-berry.html?

Gold Is Not Just An Inflation Hedge

In an article on Forbes.com written by Heather Struck, she postulates that that the market for the gold has changed of late. Although, much of the recent rise in the price of gold is a response to the weak dollar and to investor as well as public concerns about long-term inflation; central banks around the world are adding gold to their reserves. .

In her opinion, the bull market in gold could endure even if inflation never emerges and even if the dollar strengthens, because central banks around the world are using gold as a back-up reserve currency. She cites Daniel Brebner, a research analyst at Deutsche Bank, who concurs. He believes that the more gold the central banks accumulate, the more they will support its price. According to Brebner, Central banks are looking at gold differently. Primarily due to fears over the repayment of U.S. debt to foreign bondholders with an increasingly devalued dollar.

Read the entire article at http://www.forbes.com/2009/11/18/gold-dollar-euro-markets-commodities-inflation.

Silver

I became interested in silver because I thought it was a good investment and a hedge when if the stock market crashes or we have a W shaped recession. I started buying silver coins like US silver eagles because they are easily recognizable as one Troy ounce of .999 silver. As I was shopping and buying, really not knowing anything about the spot price or a premium, I discovered that there are all kinds of pure silver coins and bars. Well, if buying just for silver content I thought why not buy whatever is cheaper. For instance If i came across a generic silver round that was 1 Troy ounce of .999 silver and it was a good price I bought it. But, then I discovered a whole world of coins some I buy just for silver content, some I collect as commemorative, and some are from other countries. So to sum it up, I started hording silver but know I am a hoarder and collector.