After a big drop in February, silver is headed up again 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. He adds that as long as we don’t see a major economic change that would 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.
Morgan says the real story on silver is the fundamentals, with the silver supply extremely tight and the above ground float very small. “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,” he says.