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Gold and Silver Prices Heading in Opposite Directions

March 24, 2010 – Gold and Silver prices appear to be polar opposites at present. With Gold struggling to maintain stable footing above the all important psychological support level of $1100, Silver is trading up at $17.01. After a big drop in February, silver turned north and analysts think its solid performance will continue.

David Morgan, founder of www.silver-investor.com, notes a wide trading range for silver. “The upper limit is $17.50 (per troy ounce) and the lower limit is $14.50. That’s worth trading [as] I don’t see us going much above the $17.50 level.”He adds, however, that if silver takes out $17.50, it could run up to $19”.

George Gero, vice president of global futures, RBC Wealth Management, notes that the SLV (silver ETF) has started to gain some traction. “Daily volume in silver futures has been moving up and silver seems to have done fairly well. It’s the poor man’s gold,” he says. His prediction is slightly more bullish, indicating that unless there is a major economic change that would adversely impact gold, we could see $20 silver by the end of the year. “I’ve seen more interest in people who have been hedging by buying silver and selling gold recently,” he says.

As been documented by several sources the real story involving silver is the limited supply and the extremely tight above ground float. “Silver should be the best performing asset in the commodity sector over the next decade. I expect silver to outperform gold over the next few months on a percentage basis,” Morgan says.

Shannon King

Senior Staff Writer – GoldSilver.org

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