As the dollar continues to shrink, silver and gold are moving up nicely. I believe they will rise for years to come.

Gold has nearly doubled since early 2008 when it hit $850. As this is written, gold is over 1600, with silver just over $40! If you haven’t bought silver yet; you should. It is a buy anywhere below $100.

Gold at $1600 may be too high for the average American to buy. Silver is around $40, so buy it before it goes much higher.  If you have been already bought silver, you should feel quite happy. Down the road, you will feel terrific!

Though I tell you to buy silver (and gold if you can afford it), it’s not simply because I think it’s a great investment.  Silver and gold are a store of value. They are a hedge against inflation. Silver and gold give some security in a volatile world.

The value of the dollar has always been backed by the full faith and credit of the United States. The problem is that there’s way too much credit and not nearly enough faith.

Junk silver (dimes, quarters and halves minted before 1965) should be part of your core holdings ($500 face value for each member of your household). It is an insurance policy. Like homeowners’ or automobile insurance, it will protect you against unpredictable economic times (like now) that you always hope will never happen.

I don’t think we’ve seen the worst yet, so with any extra money you have buy silver.

*The market views expressed in this commentary are the opinion of Howard J. Ruff and do not reflect the market outlooks Kitco Metals Inc.

By Howard Ruff
The Ruff Times July 20,2011