Thursday, July 28, 2011

3 Reasons Silver Should Head Higher Than $50 Now

This winter when we we first made our call for silver to reach $70 before the end of 2011, the next highest silver prediction for 2011 by any analyst that we had seen was Eric Sprott's $50 by June.
Have you noticed that in the past 2-3 weeks, almost daily a new analyst comes out with a  $60-$100 silver prediction for this year?

From Galileo Russell
Silver is up 20% in the last month alone and looks to be headed for an explosive breakout similar to the one we saw in late April. But this time silver could see prices way higher than the previous $50 an ounce high because of three new factors that weren't in place several months ago.
1. European Debt Struggles Have Gotten Worse
New Support In The Low 30's
U.S. Debt Ceiling Problems
Silver began its first push with an established support level around $16-18 an ounce, then it surged to almost $50. After silver's quick pullback, a new support level has been established in the $32-34 an ounce zone. Silver used that support to trend off of lows and now has climbed to just over $40. With a higher launching pad, the probability of breaking April highs seems very likely. The move from $18 to $50 was 177%, if we can see that again, but this time starting from the low $30's, then silver has the potential to climb near $85 based on technicals alone.

Read more: