The market took a rest for the month of December and most of January.  It looked like the markets of old, when prices just kept climbing with intermixing of small declines for profit takers to reap the rewards of the most recent jumps.  But, as news of inflation, jobless numbers remaining, and earnings not quite what everyone thought they were going to be, we’ve seen some large declines.

So, is it all money back into previous metals?  Ride the gold train all the way up?  We’re not sure about gold, but silver is definitely still looking good in our minds and remains a buy for many at the current price of $17 an oz.

Historically, silver is no where near it’s non-inflation adjusted price of $50 per ounce, while gold is setting a new high every other week.  So whats the deal?  Will silver finally correct itself or will we see the price of silver take a back seat as the rest of the words markets wait for the economy to recover.

Buying silver, as we said last month, for 2010 may be one of the smartest bets you can make with your money. And as we wrote that, silver was around $17 an ounce. Now, just days into 2010, it’s already creeping back towards it’s 52 week high.

$19 is near for the price of silver and if you want to buy silver, now may be the time to do so. With the jobs market still shaky and earnings reports for a flurry of companies on the S&P 500 due out in the next month, you may want to put a little bit in silver to keep your rear end covered.

Gold, although still rising amid recent selloffs, is high priced and difficult for some to get into. Well, silver tends to follow the trend of gold and you may want to ride the wave. Just look at the chart below at how closely silver follow gold. This is a 1 year comparison chart of the price of ETFs, GLD and SLV.

If you think gold is going to rise, you may just want to buy into silver and watch that price follow all the way up.

Where will the price of silver go in 2010? It’s a new decade, there’s a new set of investing rules out there, and both gold and silver are looking find new highs in the new year.

While gold is ever stretching towards new highs, silver is still lagging behind. Silver ranged in price from $10 to $19 in 2009, still well, well below it’s highest price ever. $49.50. That’s right, in 1980 the price of silver was 2.5 to 5 times higher than it’s all time high of nearly $50!

Gold on the other hand continues to break through it’s all time highs as world banks stock pile the precious metal to back their currencies and individual investors buy gold to combat inflation, looming around every corner.

So where oh where will the price of silver go? We think up, and up and up. But what do we know, we just write this blog….