Silver moves past old high and heading much higher

By: Peter Cooper
-- Posted 21 February, 201



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.


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