Silver. Its chemical symbol is Ag. In Latin:argent um. It has an atomic number of 47. A soft white metal with great electrical conductivity. All interesting facts, but let us talk about silvers investment qualities. The metal does occur naturally, but most silver produced is a byproduct of gold,copper,lead, and zinc after they have been refined. Silver is considered a precious metal, and this makes it an ideal investment vehicle. That raises the question of "Is silver right for you as part of your retirement portfolio?" Let us examine the pros and cons of adding physical silver to your portfolio. We can start by looking at the disadvantages first. In fact, I like to call them myths because most can be disputed.

1]"Silver is too bulky to store and you run the risk of theft."
2]"Forget silver. Buy gold. That is where the money is."
3]"Keep your money in the stock market. History shows superior returns."
4]"Stay away from physical silver. Silver stocks, mining companies, and futures is the way to go."

First off, concerning item number 1. Think about this. Silver coins and bars are no more bulky than a set of china or an old stereo. I am sure you can find storage space for these items. Why not silver? Concerning the risk of theft. We have safes and safety deposit boxes as well as a good hiding place, like maybe the attic somewhere. I am sure the average person can come up with a remote area to hide their silver stash.

Next on the agenda. Buy gold not silver. This may have been true some time ago, but gold has already made a major run. Since silver holds a ratio to gold I believe it may be silvers turn to run. In fact, I foresee silver at about $30.00 an ounce in the not too distant future. That would be quite a nice return on your money at recent silver prices.

Moving on to item 3. Stocks outperform metals. True. In the long run yes. History has shown this, but we are talking about diversification. I am not suggesting that you put your entire amount of savings into silver. I am suggesting that 10 to 15 percent should suffice. The old saying about not putting all your eggs in one basket rings true here.

Last but not least, item 4. Many people suggest not paying the small premium placed on physical silver and going with paper silver instead. To this I give a resounding no, no, no. Let us look at it this way, our portfolio already contains 85 to 90 percent paper. Whether it be stocks, bonds, certificates of deposit, cash, etc. Why on earth would you finish it off with 10 to 15 percent more paper. Hard assets. Yes, hard assets. In a time of a financial meltdown physical silver will be treasured.

In closing, the only one who can make the decision is you. How much silver would you like to own? We all control our own financial decisions. Always remember... Every cloud has a SILVER lining.