The QE Case for Gold and Silver
Ashraf Laidi submits:The case for metals remains not that of outright inflation but that of central banks’ prolonged liquidity drives. Currencies will gain/fall versus one another, but fresh asset purchases will maintain gold and silver ahead. Rising metals remained the consistent play over the past 2 months, supporting my near-term gold outlook for $1270/oz and $1,330 by Q4. Meanwhile, Silver finally breaks the $19.80 ceiling to attain its highest level since March 2008. Unlike gold, silver has yet break its 2008 record high of $21.35/oz. Players are gauging this level with high interest. Each time gold’s rise hits the headlines, it steals the limelight from its cheaper cousin, silver. But as the charts show below, silver has not only followed closely on the rallies, but usually outperformed gold during the general advances in metals, as shown via the falling Gold/Silver ratio. »
This entry was posted on Sunday, September 5th, 2010 at 10:03 pm and is filed under Silver Dealers . You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.