Wednesday, May 12, 2010

Silver Getting Some Respect

Silver has been performing somewhat like gold mining stocks over the last year or so, as expectations of breaking out were always sitting there, but it wasn't able to break through.

Now that gold has surged beyond resistance points, there are no short-term barriers in its way to stop it from rising at a steady pace.

Silver, along with gold mining companies, has now broken out with gold in its latest move, and could break the $20 an ounce mark sometime soon, and from there will probably find support and start to rise much higher as a result, with some thinking in the months ahead it could break the $25 an ounce barrier.

Once gold shattered all-time records yesterday and today, gold mining companies started responding in similar ways, especially junior and mid-size companies, which had been sitting still for quite some time waiting for the right moment, and that moment is now, as investors pour money into the sector.

For silver, if it starts to act in unison with gold, and investor continue to look for a safe place to put their money, silver could start a huge bull run where it's anybody's guess where it'll end up. We're in for some interesting times ahead, and gold, silver, and gold mining stocks should do very well over the next year, and while ultimately correcting, there is nothing in the near or mid-term future which indicates it will interfere in this process, even if interest rates are raised by the Federal Reserve, which may be for the most part ignored in the light of these extraordinary economic times we live in.

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