Don't look now, but silver is quietly moving in on $19 per ounce…
Silver is an odd duck in the raw materials world. Even more than gold, silver benefits from the current E-Z-Credit boom we're seeing in economic growth, stock prices, and commodities. Silver behaves like gold in that it's a precious metal hoarded by investors. But it's also heavily used in industry… which makes it act like copper, an economically sensitive metal.
Starting in 2003, silver enjoyed a huge five-year run that took it from the low $4-per-ounce level to $21. The run turned to rout during the credit crisis, and silver was obliterated below $10. But in the past year, silver has steadily crept higher… including the 16% rally you see on the right side of today's chart… close to the high reached during last winter's flight to gold and silver.
What to make of this stealth rally? As long as the Fed and its fellow central banks keep the "goosing" effects of cheap money and credit going, we could easily see silver blow out its 2008 high of $21 an ounce.
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