Market Has Completely Discounted Silver as an Industrial Metal

http://www.goldsqueeze.com/technical-analysis/market-has-completely-discounted-silver-as-an-industrial-metal

Silver is an oddball metal.  It's technically considered "precious" due to its rarity but at the same time it has tremendous industrial value due to its unique physical characteristics.  In particular, as I cited in this post from July, "Silver is the most useful industrial metal ever found.  Obviously, far greater quantities of iron and copper are used, but silver enjoys more varied applications due to its properties.  More important, these applications use only trace amounts of silver, so there is no question of recuperation by tapping large concentrations.  The amount used by industry - electronics, solar power, mirrors, health care (antibacterial), lasers, even clothing - exceeds annual mine production."


So if you believe that the world economy is indeed booming, then silver appears to be relatively undervalued based solely on its industrial usage. If, however, you believe that the gargantuan sovereign debt loads will threaten to collapse the financial system just like in 2008 (because nothing has been truly fixed), then silver should appear undervalued given its "precious" characteristics as a store of value. Either way you look at it, silver is attractive at these levels.

Keep buying bottom line... the fakery will be exposed and soon.