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

Silver moves past old high and heading much higher

By: Peter Cooper

-- Posted 21 February, 2011 | | Discuss This Article - Comments:

A week ago and you could have made a good argument for the silver price being at a double top. And typically after confirming a previous high, a downturn would be in prospect.

But not after prices jumped to $32.60 by the end of the week, comfortably placing silver in a fresh stage of upward momentum.

It is not hard to reason why. There is the weakening dollar. Geopolitical upsets like the Arab World’s revolution in Egypt and its knock-on impact on Bahrain. Or the US budget deficit.

Hard assets

The rush to hard assets continues. Some observers will not be convinced of the silver price break out until it is confirmed by gold which has been a laggard in this rally and still not above its recent high of $1,430.

That confirmation should not be long in coming. UAE gold sellers report shortages of gold in January as canny local investors bought at lower prices. Mints around the world are having to ration coins.

Metal analysts see silver now heading to $36 before any further correction. But silver has always been volatile. It does, however, almost always outperform gold on the upside as well as on the downside.

Gold prices do not seem very vulnerable to anything except a major correction in global stock markets. That could jump out of the woodwork at any moment. Stocks have not risen this far, this fast since the mid-30s and that was followed by a massive plunge.

Goldman selling or buying?

Goldman Sachs was on Bloomberg Europe last week telling viewers to buy, while the previous week it emerged that its own house position is that there is nothing worth buying anymore (click here).

But any stock market downturn (if they actually happen these days) would test precious metals and rally the dollar. For those daring enough to short equities at this time this would be a great buying opportunity for gold and silver.

These are the kind of strategies that we follow up with actionable investment ideas in the ArabianMoney newsletter, and no prizes for guessing that the next issue will be about what revolution means for investors (click here to sign-up ready for a landmark edition).

In the meantime, if you are a gold bug, should you not now also be thinking about silver (click here)?

-- Posted 21 February, 2011 | | 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.