Wow… Wow, is all we can say. The price of silver was extremely volatile this morning as investors couldn’t decide if they wanted to take profits or continue to push the price of silver per ounce up above the all-time high reached more than 30 years ago.
We called for the price of silver to reach $50 per ounce by the end of 2011. Well, it’s not even half way through the second quarter and we’re already pushing the limits of the $40s and flirting with $50 per ounce. Unsurprisingly this has brought out all the bears who are calling for a huge sell-off in silver contracts and look to get into ways to short silver.
But if you look across the board, there are just as many bulls still in the market as there are bears. Gold has already hit it’s all-time high, and gold doesn’t seem to be pulling back at all. So will silver continue to rise?
Give that in less than a month silver has risen $10 per ounce or more importantly more than 20%, this could have even us getting a little skeptical on the future movements in silver. Our investing in silver strategy may change, but we doubt it. We only own silver bars at the moment but are looking to purchase some other forms, possible even NYSE:SLV with a long on the underlying or a long call. We can’t decide because with this volatility, although in the upward trend, we are getting a little more bearish on a near-term profit taking bonanza.
But that doesn’t mean long-term we’re still not bullish on the stuff.
I think that by the end of the year we should be seeing $85 silver. I am seeing China, Russia, India, Major Players in the Middle East, and Brazil taking steps to stop using Dollars for trade. China is going to rid itself of 2/3 of its US debt holdings. Then you have the proposed and inevitable QE3…. IMHO the dollar is toast going forward.
How do you feel now Jerry? This week ended in quite a dip.