Wow… Wow, is all we can say. The price of silver was extremely volatile this morning as investors couldn’t decide if they wanted to take profits or continue to push the price of silver per ounce up above the all-time high reached more than 30 years ago.

We called for the price of silver to reach $50 per ounce by the end of 2011. Well, it’s not even half way through the second quarter and we’re already pushing the limits of the $40s and flirting with $50 per ounce. Unsurprisingly this has brought out all the bears who are calling for a huge sell-off in silver contracts and look to get into ways to short silver.

But if you look across the board, there are just as many bulls still in the market as there are bears. Gold has already hit it’s all-time high, and gold doesn’t seem to be pulling back at all. So will silver continue to rise?

Give that in less than a month silver has risen $10 per ounce or more importantly more than 20%, this could have even us getting a little skeptical on the future movements in silver. Our investing in silver strategy may change, but we doubt it. We only own silver bars at the moment but are looking to purchase some other forms, possible even NYSE:SLV with a long on the underlying or a long call. We can’t decide because with this volatility, although in the upward trend, we are getting a little more bearish on a near-term profit taking bonanza.

But that doesn’t mean long-term we’re still not bullish on the stuff.

The price of silver continued to rise last week and hit $46.68 for an ounce of the precious metal. A lot of people are worried about the meteoric rise of silver related to the modest but still large increase in the price of gold. Are you worried about it?

Our take on the price of silver is that there really are too many factors going on right now that can affect it’s price and one of the most volatile and hardest to measure is the uneducated investors opinion. We’re not talking about stupid people, we’re talking about those investors, which are a great majority, that don’t do a lot of research and investor more on their emotions.

Well silver used to be rather difficult to trade and now, with the internet and with ETFs, trading silver can be done by anyone with an internet connection. NYSE:SLV the silver ETF trust by iShares is a prefect example. Buying and selling silver, at about the same price per ounce, can be done by anyone with a trading account. Silver ETF also helps out the price of silver by messing with supply and demand. Not only is there a demand by industrials and jewelery makers theres a demand by this ETF because it needs to hold a certain amount of silver, equal to it’s market value.

Although investors are constantly weighing in on this issue of ETFs affecting demand, it’s difficult to know really how this will tie into the future price, especially when bigger investors start to take profits and there’s a surplus of silver out there. If mining companies can manage that added component to world-wide supply, we may see no downward affect.

The other easy way investors can get into silver, and we’ve written about it before, is buying silver from places like ebay and other reputable sources out there like Northwest Mint or APMEX Gold and Silver. These places are fast becoming the retail stop for not only large companies looking for swaths of metal, but also for individuals looking to collect some bullion.

This will be an interesting week after the holiday weekend and a shortened trading week last week. We’ll wait to see which way the price of silver moves.

Well, now this is getting a little crazy. Even for a bull on silver like I am. The price of silver is pretty much going up a dollar a day this week. Today it pushed past $44 an ounce through $45 and is now toying with $46 an ounce in late trading on the world-wide markets.

This will really get all the bears out of the wood work saying that the price of silver is the next bubble and the precious metals market in general is out of control. But we ask again, is it really out of control? The price of silver is still below it’s historical high and although that high was obtained during some price fixing fiasco, it was over 30 years ago.

Realistically, the price of an ounce of silver hasn’t kept up with inflation which is a little silly since it’s the benchmark against inflation. You’d think that gold and silver would have kept pace but the rest of the investing world was dumping money into houses, bonds, internet stocks and… wait a second. They’re still doing that.

The price of silver continues to climb and it’s getting a lot of investors worried. Are you one of them?

Silver and gold are both reaches for the sky these days and both reached heights today that one hasn’t seen ever, and the other, silver, hasn’t seen legitimately. The price of an ounce of silver reach $44 while gold made it past the bear market ceiling of $1500.

That’s right both are setting new highs, and as the title of this article suggests, there are a lot of bears out there mixed in with this precious metals bull market. So what’s the deal? Why are there so many bears that don’t believe precious metals are reaching towards their true price?

That’s a tough one to figure out that this article probably isn’t going to answer for you who have come here looking for it. But I’ll try for it anyways. The bears are out because a lot of people have become averse to jumping into a market where everyone is buying.

Take the internet bubble, the housing market, and even bonds these days. These markets are tough to get into for those who were burned in previous bull markets. But that doesn’t necessarily mean you should join them.

I’m not suggesting jumping into the market if you can’t stand to loose some money, that’s just silly. Instead, I’m suggesting you look at the things that make the markets move. Things like the strength of the US Dollar. It’s weakening right?

Or maybe look to how inflation is going in the US. Rising isn’t it? That milk, those eggs, that candy bar? All are increasing in price while your paycheck is no doubt staying put.

And it isn’t just the US, it’s all around the world. There isn’t a strong currency out there, and there isn’t a country that isn’t having a little trouble in the inflation department.

So… What’s the true price of silver?

The price of silver was slowing down last week but put the foot back on the accelerator this week ending trading above any highs it has reached this year.  The price of an ounce of silver now sits, as we write this at least, over $43 per ounce.  That is getting dangerously close to the end of year high point that we called a while back of $50.

Now there is still a lot of year left so the price of silver could reach, exceed, and retreat back down below the fifty dollar price point but when we called it, it was only to reach the price point.

If you’ve been watching any sort of investing news lately you’ll know that precious metals have been in the news, a lot, and not just the darling of the precious metals world. I sat on a plane today and watched CNBC run a segment on people who’ve been purchasing silver the past few years and all have been making a pretty… silver dollar on the metal. While the price of silver is usually closely tied with the strength of the dollar and the pace of inflation, this new ride that we’ve been on, doesn’t seem to fit this age old pattern.

Of course, the dollar is weak and inflation world-wide is on the way up, but even on a good news day for the dollar, silver will be reaching new 31 year highs. Kinda weird, especially in this day and age when the media is reporting in real-time and a person can trade at all hours of the day.

Keep your eye on the precious metals sector over the next few weeks. We may be calling for $50 a lot sooner than we think.

The price of silver is on a tear. Just today the price per ounce of silver on the world markets reached and surpassed $40 for the first time in over 30 years. As we write this, it’s on it’s way over $41 per ounce but hasn’t quite gotten there.

Looks like our prediction of silver hitting $50 per ounce by the end of the year, 2011 that is, is ever closer to becoming a reality and making a lot of people money in the process.

The iShares silver trust ETF NYSE:SLV is also on the move upwards as it gained 2.9% today to close at $39.86. That ETF should be in almost lock step with the price of silver as the trust has to cover it’s price by holding enough physical silver to cover itself at all times.

What could possibly be driving silver now? Although it’s always hard to put your finger on exactly the reason markets move the way they do, sometimes it’s harder than hard, this one might be pretty easy to figure out.

The price of oil shot up even further today landing at $124 per barrel as world markets pulled back.

With oil, and therefore, gas, rising so much and the price of all goods going up with the price of oil, this doesn’t seem like an easy thing to hold down, silver that is. Silver will continue to rise as investors see that it’s below and all-time high and look for other places to put their money that are deemed “safe”.

And although the price of silver hitting over $48 in it’s history was due price fixing rather than legitimate buying, most investors aren’t going to dig that deep. They’ll see it’s below it’s all-time high, and think it’s cheap.

And who knows? The price of silver may still be cheap. But that doesn’t really matter these days does it?