Saturday, September 11, 2010

Investors are Slowly Realizing the Potential In Silver

By David Levenstein: The price of silver has been extremely robust as it flirts with the $20/oz level. The price is now up more than 14% since its previous low of $17.50/oz and one important thing to note is that it has managed to hold above the former key resistance level of $18.50/oz.

As there has not been any major changes regarding the fundamentals on silver that would account for this move, I believe that investors are slowly realizing the potential in silver and that the grey metal is much undervalued and supplies are getting tighter. What was of particular interest last week was the price of silver moved higher despite the fact that the large bullion banks increased their net short position obviously in an attempt to suppress the price once again. And, on more than one occasion, when the price of gold slipped marginally, silver prices continued their upward move.

While industrial demand for silver is increasing, so is monetary demand. More and more investors are turning to silver as a way to protect the purchasing power of their savings. Like gold, silver has been proven to be an effective way of protecting your wealth. However, unlike gold, silver is hardly ever quoted in the main stream media. But, as the prices begin to move upwards, no doubt it will be noticed and more and more investors will take advantage of the current low on

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