The Silver Standard
In the recent times of insecurity, investors have been flocking to gold in spades. The SPDR Gold Shares (NYSE:GLD) has quickly become one of the largest exchange traded funds on the market, with assets under management approaching $50 billion. While gold can be seen as the ultimate hedge against uncertainty and king at fighting inflation, the metal doesn't do much else. It has industrial uses, but unlike Palladium, they are few and far between. Investors should keep a portion of their portfolios in the metal as hedge, especially with the debt problems facing Europe. However, the poor man's version maybe a better play on industrial demand.
In the Forefront
As an investment, silver has done pretty well over the past 20 years. The metal has risen in price from a low of $3.51 in 1991 to the current high of around $18, giving investors an annual return of about 9%. Investors may find that, due to its industrial uses, going forward it should continue to outperform.
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