Silver is the "poor man's gold" and Cramer says you can open a new position in SLV or PAAS if you don't have any, but if you do, you shouldn't. Not sure I see that logic, but I'd like to make a contrarian pick and short silver.
That worthless video here http://yhoo.it/eEKWoB
I understand the bullish sentiment for precious metals. Read this story about predictions for gold and silver for 2011 and took away some good (bullish) points:
- India and China have increased their money supplies so dramatically in the last 5 years that the inflationary repercussions will be profound. India’s money supply has increased 160% in 5 years, China’s 180%.
- Silver and gold buying has been exceptionally strong in these countries in the last 5 years and as inflation rates in these countries increase over the near and medium term precious metal buying should accelerate.
I found this point interesting as well:
Because silver is the poor man’s gold. It will outperform gold in 2011 and for years to come since 90% of the world’s populations are poor.
So people will want gold but because they're poor, they'll buy silver as a second choice. Okay I guess. But with such a run-up lately, it's got to be decent short. Right?
Confidence 4 as I really know zippy about commodities.