The Premier Silver Resource Website

Live Spot Silver
Silver Market Articles
Silver Discussions at the Forum
Silver Company Links
Silver Market Updates
Silver & Gold Headlines
Silver Stock News
Silver Equity Quotes
Silver & Precious Metals Quotes

Rampant silver spike may hit $50 an ounce in the New Year

By: Peter J. Cooper

-- Posted 6 December, 2010 | | Discuss This Article - Comments:

Gold and silver prices have moved to new highs for the current bull market with gold hitting a fresh all-time high at the moment of writing above $1,415. Silver is within a whisker of $30.

The yellow metal is the choice of investors concerned about the euro zone financial crisis and those in China worried by inflation where central bank buying is up by a factor of five this year. Perth Mint has reported speculators selling their gold and buying silver which is now rising in a spike pattern and thus offering higher rates of return.

Moment of truth

The ArabianMoney newsletter for December offers its subscribers a comprehensive round-up of investment opportunities and also reviews precious metal investment strategies (click here to sign-up).

However, the core argument is that this silver price spike is a warning to investors in precious metals. We know that price spikes always come at the end of a trend and are unsustainable.

The message for silver, and by implication gold, is that a price blow-off is at hand. Precious metal prices can surge much higher from here into the New Year, and gold could easily take out gold guru Jim Sinclair’s $1,650 target for mid-January, set an astonishing eight years ago.

But this kind of price rocket always runs out of fuel. More and more pile into the market until there is nobody left, or not for this round of buying. Then prices return to earth, very swiftly.

Silver in 1980 again?

Silver did this in 1980. And actually the $50 an ounce all-time high of that magnificent spike has not yet been seen. Perhaps it will be in early 2011. Silver has always been highly speculative as an investment class and history has a habit of repeating itself, if only because investors read history and act on it.

How will 2011 pan out for investors in gold and silver? Well this is what the ArabianMoney investment newsletter discusses in depth this month and we do not want to reveal our full thoughts for free on the Internet.

We will, however, be referring back to our full view of the year in future posts on this website, and subscribers can check whether we get this right. But gold and silver investors need to be more careful about 2011 than any other year since this bull market started.

-- Posted 6 December, 2010 | | Discuss This Article - Comments:

Article Archives is presented to you by:

© 2003 - 2011, Silver Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.


The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.