The global economy is in a lull right now. Some expect a recovery sooner, rather than later. Others, like us, think that we could see a second downturn. Either way, there’s one investment you need to own right now: silver.

Silver is the most flexible metal on earth. We’re not talking about its malleability. We’re talking about how it is used.

Let’s take the point of view of those expecting a quick, painless recovery. In that case, silver is a great investment. It has many industrial uses other precious metals don’t. As the global economy kicks back into gear, we’ll see more demand from electronics manufacturers, battery makers and solar cell producers — all of which use silver in their products.

There are thousands of uses for silver in industry. It is used in water purification, medical machinery and, of course, jewelry. All of these industries will begin to pump out products again,

...

Rising gold and silver prices push our silver picks Coeur d’Alene Mines Corp. (NYSE:CDE), Silver Wheaton (NYSE:SLW), Hecla Mining Co. (NYSE:HL) well into the black.

Gold’s been going up, knocking at the $1,000-an-ounce gate. Why exactly I can’t tell you… its principal bullish factor, inflation, being vortually non-existent in today’s deflationary market.

That leaves the fear of reckless U.S. Congress wrecking the dollar with huge new debt loads… and of an Administration that seems dead-set on crippling U.S. economic competitiveness for decades to come.

Valid fears, indeed, fueled by every redistributionist soundbyte slopping out of Washington.

Silver, too, has been gaining steadily. Our Hot Stock Confidential silver mining play Coeur d’Alene Mines Corp. (NYSE: CDE) is up 23%, Silver Wheaton (NYSE:SLW) is up 18%, and — after a horrendous 40%-drop ofer our May recommendation — Hecla Mining Company (NYSE:HL) has clawed back to a gain over 2%.

(HSC Members who used

...

Joe Kunkle, Investment U Research Team

With gold and oil hogging the “commodities spotlight,” silver is too often forgotten. However, a new trend is emerging that indicates a major rally may be starting in silver prices and silver related stocks.

Over the past few weeks we’ve seen more and more data that supports a rally in silver: from large institutional money making large bullish bets, to technical indicators of a breakout, fundamental valuations well below where they should be, and a possibility of a massive short squeeze.

The iShares Silver Trust ETF (NYSE: SLV) has gained 18% since the broader markets began to rally in early March, but we could easily see another 25% – or more – in the remainder of 2009.

All in all, they make silver a must-own in any diversified portfolio.

Here’s what the smart money is doing in silver right

...

By Guest Author:  Harold Clifford
www.PreciousMetalsWarrants.com and www.InsidersInsights.com

Extraordinary Times Present Rare Opportunities

The 2008 once-in-a-lifetime general stock market meltdown brought panic and forced liquidation to all market sectors, and in particular pummeled junior mining share prices by 80 – 90% or more, creating once-in-a-lifetime values for discerning investors. During this monumental sell-off, shares of junior miners that had already succeeded in “building” a valuable, commercially viable asset (mineral deposit or even a new mine) were generally decimated to the same extent as shares of juniors that did not have a commercial deposit or even a significant discovery. Companies that had a solid foundation for development, production and growth were unceremoniously “lumped in” with those more numerous mining juniors that had little more than hopes centered on grass roots exploration “prospects”. As a result of this indiscriminate selling, extraordinary opportunities emerged and, slowly but surely, the market …

After a late week rally profit taking once again ruled the roost during Monday trading on the Canadian Markets. For the tale of the tape, the TSX Exchange gave back 1.26%, while the TSX Gold Index lost 0.3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 0.62% with the decliners swamping the advancers by a 477 to 369 margin on 157 million shares traded.

Silver Wheaton (NYSE:SLW) saw its first quarter profits fall to $15.1 million or $0.06 per share down from the $27.9 million or $0.11 per share tallied in the same period a year earlier. The company sold 3.2 million ounces of silver during the three-month period; up from the 2.8 million ounces sold in the same period of 2008 but silver sale revenues fell to $37.6 million from $48.9 million thanks to lower silver prices. Silver Wheaton ended the day down C$0.12 at C$10.14.

...

This move has nothing to do with the fundamentals of gold or silver. Simply put I want to run a concentrated portfolio and my # of holdings is getting too large. With the Federal Reserve backstopping the entire US financial system, the risk of "calamity" is lessened (in return for inflationary pressure and dollar destruction)... but this is more along the lines of, I see no reason to hold gold/silver when I have coal/fertilizer. I already know where the prices of those are a year out - whereas gold is speculative, subject to the whims of the market, and a lot of people believing in a fantasy called "2nd half recovery". So I just don't see the need anymore to hold something that is sort of replicated in other ways in the fund; yet carries more risk. I'd rather simply be more ...