China Puts Shine on Silver

In a recent televised broadcast, Chinese officials actively promoted public investment in silver bullion. Prior to this, the Chinese silver standard had remained somewhat unclear. But the report has been a definite step in the direction of full public exposure on the commodity.

Held in the Beijing Caibai shopping mall, the broadcast literally unveiled an impressive selection of bullion offerings in 500-gram, and one-, two- and five-kilogram bars. According to Chinese officials, exposure to the metal is a wise investment for individual investors, and could be a good way to cash in.

Reporters, meanwhile, were quick to note the undervalued nature of the silver commodity; buying in at a low point for the precious metal is a keen financial decision for newer investors. The gold/silver ratio has grown from 1:50 in 2007 to a present-day 1:70.

Keep an eye out on existing silver funds to see if the Chinese promotion contributes to price fluctuation. In particular, stay conscious of changes in the ProShares Ultra Silver (AGQ - commentary - Trade Now) exchange-traded fund, the ProShares UltraShort Silver (ZSL - commentary - Trade Now) ETF, and the iShares Silver Trust (SLV - commentary - Trade Now).

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Know What You Own: Other precious metals ETFs include PowerShares DB Precious Metals (DBP - commentary - Trade Now), iShares COMEX Gold Trust (IAU - commentary - Trade Now), PowerShares DB Gold (DGL - commentary - Trade Now) and Ultra Gold ProShares (UGL - commentary - Trade Now).

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At the time of publication, Dion had no positions in the securities mentioned.

Don Dion is president and founder of Dion Money Management, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.

Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.