Investing In Silver: Double Down On The White Metal's Gains

Gold remains the favorite of precious metals investors, but silver is now a strong number two...with a bullet.

That means you should consider investing in silver now before it goes even higher.

In case you haven't noticed, after wallowing around in the mid-20s for months, silver prices have shot back over $30 an ounce.

And thanks to wildly bullish technical and fundamental indicators, silver could soon retest its 2011 high, or even blow through it.

If that happens, silver's run-up will hand investors a fortune, so here's how you can cash in.

Strong Signals for Silver Price Rally

From a technical viewpoint, the rally in silver may be just beginning.

You see, the silver futures markets are in what's known as "backwardization."

In other words, it costs more to buy silver today than it would to buy silver a month from now, or six months from now.

For instance, the September 2012 silver contract closed on Aug. 27 at $30.90. The December 2012 contract closed the same day at $29.64. And the March 2013 contract closed at $27.28.
It's a rare condition that occurs when the current cash price is higher than distant contract prices.
It's a rare condition that occurs when the current cash price is higher than distant contract prices.
There are also signs that industrial demand is improving. Unlike gold, silver has a bevy of critical industrial uses. There's silver in just about every electronic device out there - from televisions to computers to cellphones to tablets.
On top of all that, the latest Fed minutes suggest the central bank is ready to begin another round of quantitative easing, which has been favorable for silver and gold. Europe and China are also in stimulus mode.