Silver vs. Gold - Silver's March to $40 and Ounce

Silver has shown strength over the first two months of 2011, as the price of Gold struggles to break through it's historical top of around $1420.00. Silver's momentum should continue because of its value, not only as a safe-haven investment, but also as an industrial metal. Commodity prices are going higher due to the unrest in the Middle East. The overthrow of the Egyptian government along with violent clashes in OPEC member Libya have been causing investor concern worldwide. Looking forward, the situation should remain unstable for awhile. Elsewhere internationally, North Korea's recent comments on its ongoing struggle with South Korea is adding more unstability to the world markets. Is it just more chest thumping like we've seen in the past, or are they serious threats?

Looking forward to what's going on domestically, we see the inevitable clash between those who want increased government spending and those that want to slash the national and state budgets. Yes, the economy is growing, but the growth is slow and the job market isn't getting any better. Many new state governments want to reign in the spending and keep taxes low in order to create a better business climate for job growth. They are being met, however, with loud protests by the government employee unions and their supporters, especially in Wisconsin. Will the Governors and State Legislatures be able to put up with the pressure being put on them, or will it be business as usual with more spending and higher taxes.

All this uncertainty, both foreign and domestic, has been great for silver investors. The question is should people still be buying? Many experts say the anwer is, yes. Silver is still in short supply and the demand has been greater than ever. Some industry insiders have a 2011 silver price target of $42 and ounce. They key is to not be impatient and panic buy. Watch the silver market and buy on the dips, especially during slow news cycles. When looking to add to your silver position don't forget to check out APMEX, your online source for the best deals on Silver American Eaglesand Brand New Silver Bars and Rounds.