The case for silver

Gold is back in the news...again. It seems when ever the stock market turns bearish or pessimism hits other asset classes (like bonds), the gold bugs come out of the woodwork to toot their horns. And who would blame anyone for wanting to invest in gold these days? After all, it has been a wild and crazy year to be a stock picker. With all the trouble in Europe, to the oil spill in the gulf, and the now infamous "Flash Crash" in May, people young and old alike are shunning stocks for other, more predictable investments. Suddenly bonds, commodities and gold are all the rage. But let's look at an often overlooked investment that might be a better bet than all of the above...SILVER. Yes, while gold gets all the attention, silver has quietly put together a better year than gold. While gold has returned over 15% year to date, silver has netted over 21%. And for value investors, silver comes in at a much lower price. While gold has topped $1200 per ounce and seems to be headed for $1300, silver can be had for roughly $20 per oz. So even smaller investors can participate in the silver rally without having to fork over thousands of bucks. And here is another thing you may not have considered about silver. While gold has limited use outside of coins and jewelry, silver has many, many uses in technology and industry, which makes it an even more sought after item, something that is a good thing for investors. To be sure, neither gold nor silver pays dividends like stocks and bonds, so this may not be the best investment for those looking to replace their low interest CD's. But silver is certainly something to take a look at more closely if you are wanting diversification in your stock and bond portfolio, and something with a good track record with good prospects for the future. The easiest way to buy silver is by purchasing the exchange traded fund, iShares Silver Trust (ticker symbol SLV). This is very liquid and can be held in almost any brokerage account. Hi Ho Silver, away!