My first reference to silver was on December 3rd on my Facebook wall and then on December 14th I said “Go Long Silver” when it hit $30.68 based on JP Morgan finally saying they were going to cover their short position.  Since then you had many opportunities to make purchases in the high 20′s as well as at or near $30.00.  This is no longer the case as silver has now broken out over $40 and sits at $42+.  That is a $12.00 profit on a $30.00 investment in 4 months.

The fundamentals still point to higher prices as demand continues to far outstrip supply and major investment banks continue to sell their clients silver but never really have any silver to sell.  They can do this as long as their clients don’t ask for physical deliver of the metal.  The US Mint has run out of silver for all intents and purposes.  And each week more and more news points to low supply and high demand.

Here are a couple from this week:

Bolivia might nationalize their silver mines – if this happens private money disappears and actual production of silver drops off a cliff – decrease in supply

US Mint Silver Proof Sets Suspended as Silver Prices Break $40 – US Mint has trouble finding silver

164 Tomahawk Missiles fired in Libya have 500 oz of silver each inside – that is more than $20,000 in silver

And a couple stories about GOLD:

Did Gold hit a tipping point last week? – University of Texas told delivery of $1 Billion in gold. I read the story but delivery was to a vault in New York, not shipped to Texas so who really knows if it exists and was in fact delivered.

$1 Billion of Gold Bars Taken Delivery Of By Pension Fund Due to Risk of COMEX Default and Shortage

And as the US Dollar continues to be worth less and less compared to everything else, putting your money into precious metals gets an added boost as paper money (really linen and cotton) buys less and less thanks to the Fed.

If you want to buy some silver or gold to protect yourself, you can do so by following these links: