The 12-Step Silver Program Sean Hyman (May 13, 2010)

(Why Silver Is a Screaming Buy Right Now)

Investment guys in the industry like to say “silver is the poor man’s gold.”

Just one problem with that: I hail from rural Arkansas, and I grew up with a lot of poor folks. So far, I’ve never met a “poor man” who can afford to invest in anything, much less silver.

But the sentiment is clear. If you can’t afford to shell out $1,250 248 for an ounce of gold (a new record as of yesterday by the way), then throw down a $20 bill for a hunk of silver instead and you’ll get change back for your trouble.

Now frankly, I love both. I’m a big fan of gold because most of the big institutional investors are buying gold right now.

But I’m still a big believer in owning some actual silver. Today, I want to give you my top 12 reasons why you should be an owner of some silver in general.

Let’s start by checking out the chart of silver below.

Silver Just Awakened from its 4-Month Slumber!


The Chart Says it’s Time to Own Silver Now! Silver has been consolidating the gains from its last run up for about four months now. It was an impressive run from below $13 an ounce to over $19 an ounce (a 46% rise in value).

Many thought the run was over…except me.

Oh sure, I figured it was due for a pullback (which happened). But the metal has held above its 50 and 200 day inclining moving averages for a couple of months now.

In fact, silver has been in its uptrend since October of 2008. This means that silver prospered in the credit crisis and silver is still beating out the competition even though the so-called experts “claim” that the credit crisis is over. (However, you and I know better don’t we?)

So as you can see from the chart above, silver is breaking out and headed higher just like gold is doing. We’ll see $20+ in silver prices in the weeks to months ahead. I have no doubt.

However, I do want you to also realize that silver is not gold’s strange redheaded stepchild. It’s a great investment in and of itself.

Let me give you some of the reasons why I believe this to be true.

12 Reasons Why You Should Buy Silver NOW! 1. Silver is an investment in something real…unlike a paper currency or stock certificate.

2. Silver is easy to store (especially silver coins).

3. Silver is cheap enough to be used as real currency. If the dollar completely failed, gold would not be a practical replacement for paper money. But silver would. Its smaller denomination could be more easily used for necessities like food.

4. Silver (as well as gold) is recognized as wealth worldwide.

5. Silver can be exchanged for cash in almost any county in the U.S. at a local coin shop.

6. Silver can be exchanged for the local equivalent of cash in many European banks.

7. Silver is disappearing. The majority of it is used for industrial purposes such as photography, electronics and in health care. Keep in mind that most of this is unrecoverable too.

8. Silver mines can’t seem to keep up with the demand of industry, not to mention the investment demand.

9. A stock can become worthless (and we saw examples of that in the credit crisis). However, silver is not likely to ever be worthless and thrives in calamity and uncertain times.

10. Silver can be obtained in small amounts very easily. It’s easier to get silver at $19 an ounce rather than gold at $1,248 an ounce. This should cause everyone to consider owning at least some silver if for nothing else for emergency’s sake.

11. Silver can be passed on from generation to generation without any paperwork.

12. Silver is simple to invest in. You don’t have to pour over balance sheets of thousands of stocks and trust CEOs or CFOs. It’s what I call a “scandal-free” asset, unlike some stocks.

How many assets out there have this much going for it…and that’s just the ones I thought of off of the top of my head.

I hope I’ve encouraged you to pick up some silver, even if it’s a small portion of your portfolio (percentage wise). It can be easily obtained and easily converted. That’s the type of investment you need if the “you-know-what” really hits the fan.

Happy Trading!
Sean Hyman

EDITOR’S NOTE: Today is your LAST chance to invest in gold, silver and platinum 100% risk free. Click here for details.

 
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