Gold and Silver: The Future of Real Money

Looks like I called it wrong yesterday. Can't win them all I guess. Silver shot up very quickly yesterday, only to drop back to previous levels today. The market is incredibly volatile at the moment, and making predictions is difficult. Pinning a price on silver is like trying to predict the weather - trends indicate that one thing should happen, but occasionally it defies the trend.

Still, with the drop in price, we're currently sitting around the old resistance point of $12.50. With silver demand what it is, I'm still expecting a rise. Just not today, it seems.

With that said, however, the price appears to be high right now, at least when priced in US dollars. Your dollar won't buy as much silver this year as it would last year - but then again, it can't buy as much of anything as it could last year. Silver truly only seems volatile when compared to unbacked currencies. As a store of value, it and gold are unmatched in their stability in terms of actual purchasing power This is the primary reason I am a proponent of owning both silver and gold. Looking at gold and silver as actual money when compared against other commodities, such as gasoline, their purchasing power is very strong wheras the US dollar is not.

It looks like the pullback may be over as both metals have started back upwards today. Silver in particular is moving rapidly upwards (nearly three quarters of a dollar upswing this morning, which is huge) and has broken past $13 once again. If the trend continues and does not atall we could be seeing $15 once again in the near future. If you're still buying, I'd recommend grabbing all you can while you still have the chance so as to get the most for your dollar.

If you're late to the game, now might be a good time to pick up a few ounces and still come out ahead. Silver is down from a $15 high to about twelve-fifty and has been staying around that number for a few days. Fifteen was a big resistance point, and after hitting it briefly, silver dropped back to the previous point around twelve and a half. There has not been a sharp drop, however, which leads me to believe that it will pick up steam once again and push towards $15.