Silver Update: Silver nears $50

In December I pointed out Silver was the Best Investment of 2011. At the time Silver was around $28. In January it dropped a bit... into the $26s and then began to launch. So, if you bought in the $26-28 range is it time to run? Is Silver a bubble about to pop?

Check out these charts... the Dow vs. Silver



If you look at the chart to the right. Silver hit a 27 year support in 2007... and yet the biggest gains have been since.

And if you look at this chart you'll see after 2007 the ratio continued to drop.










These charts would suggest it might be time to start diversifying. And if you do believe in these charts I'd say you may want to take some off the table and stick it into something else that has tangible value (non-dollar denominated). But I'm not convinced because I believe in another chart much more.

The chart on the right shows the value of gold vs. the Dow since 1900.