Top 7 Trades for December

Top Stock #6: iShares Silver Trust (SLV)

30 Dead Dividend Stocks to Avoid At All Costs

The iShares Silver Trust (SLV) is intended to be a simple and cost-effective means of investing in silver. The fund reflects the price of silver owned by the trust, less the trust’s expenses and liabilities.

Prior to the financial panic early this year, the silver-to-gold price ratio held for many years at about 55-to-1. But the panic “decoupled” the ratio. With gold now at about $1,175 an ounce and silver at $13.30, silver appears undervalued. So if gold were to maintain its current price or advance, and silver reestablishes its traditional ratio with gold, silver should be priced at more than $20 an ounce.

This trust could be an excellent vehicle for those who wish to invest in silver and believe that its traditional ratio with gold will be reestablished.

Learn how to trade commodity futures.

Next: Top Stock #7