Once in a blue moon gold and silver prices move to present spectacular opportunity.

May 09, 2011 – Once in a blue moon gold and silver prices move to present spectacular opportunity. The sudden drop in silver to under $40 is just such an instance.

A lot of reasons have been given for the drop, but this one smacks of manipulation. “The Chicago Mercantile Exchange raised margin requirements on silver futures four times in two weeks. While margin requirements must go up when prices go up, four times in two weeks sure is grist for those who say the big banks are short silver and will do anything to derail silver’s bull run,” says Sean Brodrick in MarketWatch.

There has also been a selloff by some major players seeking to lock in their profits, an action that always sends ripples through individual investors, who make up a sizeable portion of the silver market. But long-term investors aren’t phased by these quirks of the market because they know that the drivers have not changed.

Silver today enjoys an ideal combination of strong driving fundamentals – increasing industrial demand, inadequate production, and a strong presence of individual investors seeking safe haven – everything needed to keep this bull running far into the future. “Both gold and silver are in big bull markets. Until that changes, pullbacks and corrections are buying opportunities,” Brodrick says.

Silver was on a well establish track before the drop and there is every reason to believe it will quickly rebound. No matter how you slice it, silver is vastly underpriced right now and it cannot last. If it should drop even lower before turning around, it would just be a signal to buy more.

The plain truth is that gold and silver will grow as long as the dollar falls, and any short-term gains the dollar makes will be transitory. At a time that cries out for gold and silver investments for wealth preservation, today’s silver price offers a rare bonus opportunity for wealth creation.

Shannon King

Senior Staff Writer –

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