What Can We Expect from Silver?

Silver’s had a tremendous run this year and I recently appeared on CNBC’s “Power Lunch” to discuss whether it can continue into 2011.

During the interview, I shared with viewers the idea of giving silver coins as gifts. Over the years, I’ve given them to employees as gifts several times, with the idea that a silver coin will hold its value better than paper currency.

Asked if I believe the rally can continue, I explained that silver, like gold, has yet to break through its inflation-adjusted highs:

“Let’s take a look at all the commodities. Most of the commodities have gone through their 1980s inflation-adjusted price but gold and silver have not. Platinum has. Palladium has. Oil has been up to $147 and corrected and is now coming back. So if you take a look at some of these metals like copper has [gone through its inflation-adjusted high], but gold and silver haven’t. So I think that you can see these price levels trade at higher prices.”

Link to video

The Global Resources Fund (PSPFX) was ranked #1 of 128, #16 of 53 and #3 of 32 among global natural resources funds for total return by Lipper for the 1-, 5- and 10-year periods ended November 30, 2010.

Past performance does not guarantee future results.


Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees of 0.50%) which, if applicable, would lower your total returns. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.

Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.