Monday, February 25, 2008

Silver UP!

The silver spot price busted through $18 this morning , setting mulitdecade highs and continuing an impressive recent run. Year to date, the metal is up 22%.
“Silver has moved up to its new highs on several factors.” says our resource man Kevin Kerr. “Fear of inflation, the drop in output in South Africa and prospects of U.S. rate cuts are all helping to lift gold too.
“The market is supposedly now anticipating another 50 point cut by the Fed. Meanwhile, inflation is surging at every turn. While gold positions itself for a run at $1,000, silver is just catching up and is probably fairly valued at around $19 per ounce.
“Strong global demand for both retail and industrial uses is supporting a strong silver price and will continue to for some time to come; however, at these levels, for those of us who have been long since 12 and 13 bucks ... well, $17 and over offer very nice profits, and in my opinion, it's a good time to cash out and then observe.”

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