November 10, 2010 – For anyone looking to generate cash through short term investments, this is a perfect time to look at gold and silver bullion. Silver prices in particular have enjoyed a period of spectacular growth since the 2008 report from the Commodity Futures Trading Commission (CFTC) precipitated a plunge to nearly $9.
So far this year silver prices have risen 72%, far outdistancing other commodities and setting a 30 year record high. Nations around the globe have initiated measures to ward off inflation and rekindle economic growth, measures that in the short term have created a great deal of instability in world markets. That in turn has driven heavy speculation in gold and silver derivatives and created a very appealing climate for short term investors.
Because silver prices are far lower than those of gold, vast numbers of people with limited resources are attracted to silver investment when the conditions are right. And conditions are rarely better than they are right now.
While it is uncertain how long silver prices can sustain the current trend, there is no reason to expect the market to cool down any time soon. The current round of stimulus measures continues driving the dollar lower while fueling protectionism in foreign markets that might well result in a global currency war.
The goal of short term gold and silver investment is to generate cash and the inherently higher risk is balanced with the potential for greater rewards. But on occasion a situation arises where there is an exaggerated reward potential relative to the risk, making it an ideal time to buy gold or silver. I believe that in light of today’s global economic conditions the current trend creates an exceptional opportunity for silver investment.
Senior Staff Writer – GoldSilver.org