Commodity Online
Everyone has been bullish on gold. Experts are these days saying that the US dollar has died and Gold is the new global currency king. But following Silver in this global bullish rally is its white brother silver.

Here is a posting from Taipan Daily Executive Editor Sandy Franks on silver:

Silver has been on a tear lately, rising 30% since the start of the year. And according to a World Silver Institute survey, there's still room for the price to move upward.

The survey says, "Given strengthening concerns of mounting inflation it is likely that investment demand and therefore silver prices will be robust." As industrial demand for the metal picks up - which is 50% of its total demand - prices could shoot skyward of $20 an ounce.

But here's something you probably don't know - that 1959 would be the last year the U.S. government would be a buyer of silver, as it had been for decades, until 2001, when it began buying silver for the American Eagle and commemorative coin programs.

In 1959, when the U.S. government held 3.4 billion ounces of silver, the U.S. population was approximately 180 million. That means the U.S. government held almost 19 ounces of Silver for every man, woman and child in the nation. Today it holds none.

Here’s another statistic that is just as troublesome. In 1959, there were about 5 billion ounces of silver physically held on U.S. soil. Today there are just 300 million ounces, including all 118 million ounces in COMEX-approved warehouses and privately held silver. Before you disagree, please remember that the more than 400 million ounces in ETF-type vehicles are held outside the U.S. That means the amount of physical silver held on U.S. soil is down about 94% in 50 years.

It was for these reasons back on July 23, 1965, President Lyndon Johnson made a historic speech in which he announced the Treasury would stop production of silver coins. The president and his team of economists and analysts were spot-on in their fear that the demand for silver and the inability of production to meet that demand would soon deplete U.S. inventories.

It isn't a good situation, which is why I'm urging you to still keep a portion of your portfolio in precious metals. But that doesn't mean you have to buy silver coins, hoard the metal, or invest in mining companies.

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