Beware of a Rule Change for Silver
By: Dr. Richard S. Appel, Financial Insights | 25 March, 2004
Silver recently broke above the important $6.00 level that should have at a minimum presented some important resistance. The impressive sustained buying frenzy that fired its advance quickly not only catapulted it quickly through that point, but has now placed it in a position to attack far higher price levels. When I began working on this essay several days ago I thought that it would at least require a month or longer to attain the $7.50 price objective. This was the height to which silver earlier soared when Warren Buffet announced that he had purchased a substantial amount of the white metal in early 1998. Now that $7.50 has been surmounted, and barring a correction which should normally attend such an event, the next area of important resistance should be $8.00 followed by my intermediate price target of $10.00. Given the abruptness of silver’s current breathtaking advance, it is likely that we will not have long to wait before these targets are approached. Full Story