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While many investors have their eyes full of gold, some investors are turning toward silver. It’s hard to ignore the fact that gold is still sitting above $1,100 an ounce. But some argue that gold is already near its high for now, and that, even if it goes higher, it might not provide the kind of returns that have been seen the last couple of months. Instead, say some investors, it is time for silver.

Indeed, silver often out performs gold as bulls in the stock market gain the upper hand. MarketWatch reports on silver as an investment:

Silver is a precious metal, after all, one that has historically outperformed gold in a bull market and doubles as an industrial metal — and supplies of it are depleting at a much more rapid pace.

“Silver is unique in terms of being both a monetary and an industrial metal,” the Bullion Services Team at GoldCore said in a recent report, pointing out that it’s severely undervalued. “Silver remains the investment opportunity of a lifetime.” …

“Silver is highly correlated to the safe haven of gold and is, in effect, a leveraged sister of the precious yellow metal,” according to GoldCore, an international bullion dealer. “Thus, informed investors use gold more for wealth preservation purposes and silver in order to make a return.”

It’s an interesting thought. With many investors turning toward precious metals as U.S. economic fundamentals erode (recent reports showed another increase in the trade deficit, investors look for more tangible investments, eschewing the dollar.

Even if you decide that investing directly in silver is not for you, there are ETFs and other instruments that make it relatively easy take advantage of rising silver prices — if they really do materialize.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.

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The Dow is holding tenaciously to yesterday’s gains as bulls try to fend off the bears. So far, though, Wall Street is generally heartened by the renewed pledges from G20 leaders to continue to provide economic support in their respective countries. The Nasdaq is not doing as well, as it has slipped into the red, but the S&P is managing to hang on to its gains as well, remaining just in the black. There are hopes that governments, including the U.S. government will continue to support the financial sector until things improve. Investors are a little wary, though, of the upcoming overhauls to financial regulations.

Gold continues to gain

Gold prices remain above $1,100 an ounce, gaining along with the Dow. MarketWatch reports on the possibilities moving forward for gold:

But Fed officials are not expected to say much that would curb expectations that monetary policy will remain loose for the foreseeable future. Gold rallied along with stocks on Monday after global leaders signaled continued support for the global economy.

Gold for December delivery recently gained 40 cents to $1,101.80 an ounce. On Monday, the contract finished above $1,100 for the first time, after hitting an intraday record high of $1,111.70 in electronic trading.

Oddly enough, the U.S. dollar is managing to also hold its gains. Normally, the greenback moves inversely to gold prices, as well as dropping when stocks are gaining. However, the gains are not terribly promising, and the risk trade in forex trading has slowed as news out of the euro zone and Britain continues to disappoint. There are very real possibilities that overall dollar weakness is likely to continue.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

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It’s an interesting day today on the financial markets. U.S. unemployment has breached the 10% mark, and that is driving things. However, it isn’t resulting in the rout that some might have expected on the stock market. Indeed, the Dow, Nasdaq and S&P 500 are all barely in the black, holding tenaciously to gains made yesterday.

Another interesting result has been the sky-rocketing of gold prices. Just after the unemployment announcement, gold prices surged to $1,100, a new record high. Gold is back below $1,100, at around $1,093, but gold bugs are anticipating that the news means that pressure will be on the dollar going forward, as the Fed adheres to quantitative easing measures. MarketWatch reports on interest rate expectations:

Bets that the Federal Reserve will eventually lift interest rates from near zero fell slightly after the report. Fed fund futures indicated traders pared bets the Fed would raise its target rate by mid-2010 to 0.31%, compared to a 0.33% rate before the data.

On Wednesday, the Fed left its target rate in a range of between 0% and 0.25%, and repeated its commitment to keep rates low for the foreseeable future, citing slack in the economy and little reason to worry about inflation.

Helping the stock market is the commitment by Congress to prop up the housing market by extending the first time home buyer tax credit, and expanding it so that even some current home owners can take advantage of a tax credit. The news reinforces the idea that the government plans to continue propping up the economy as much as possible.

So, while the unemployment rate remains high, there are still indications that economic recovery will roll forward, albeit slowly. As a result, it doesn’t hurt to begin thinking about how you plan to invest in an economic recovery.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.