Why Most Folks Aren’t Suited to Own Silver

If you’re a silver owner, stay prepared for volatility. That’s the message of today’s chart.
 
Regular readers know we believe silver will go much higher in the coming years. The enormous and growing populations of China and India (“Chindia”) have a deep cultural affinity for precious metals like gold and silver. Plus, the Western economies of the U.S. and Europe have taken on incredible debts and liabilities… which cannot be repaid with sound, honest money. They will be repaid with debased, devalued money. These two factors act as a big bullish tailwind for precious metals (aka “real money”).
 
#-ad_banner-#But silver is a smaller, more volatile market than gold… It’s prone to bigger moves… both up and down. So if you’re going to own silver, stay prepared for huge swings.
 
You can see these swings in the chart below. It plots the performance of silver (blue line) versus the performance of gold (black line) over the past 12 months. As you can see, both metals have gained around 20% in the past year. But silver has spiked up and down like Rick Perry’s presidential chances. In other words, if you’re going to be bullish on silver, get used to extreme volatility.