Why silver could double in price within the next three months

Posted on July 2012  

 We have been looking at the latest price chart analysis for precious metals from technical guru Clive Maund and his conclusions are very clear. Gold and silver prices have their lows for the year behind them and are set up for a powerful advance.

As usual there is a solid fundamental reason for this change of direction. Up until the end of last week the euro crisis threatened an imminent blow-up of the global banking system that would have resulted in a panic sell-off of all asset classes including precious metals.

 Money printing again

 That crisis was not only averted, and kicked down the road again but the solution in progress is going to involve considerable action by central banks to loosen monetary conditions. This is exactly the sort of environment in which precious metal prices go up and up.  

 Silver as ever is the classic leveraged play on gold and will go up further when gold prices go up (and down faster when they go down). Mr Maund’s charts show negative sentiment hitting a rock bottom last week in the market, a clear indicator of a market bottom now that the fundamentals have changed:  

3-Year Silver chart


International Metals Group

Anticipating market cycles is a complex and time consuming process and many investors simply do not have the time or expertise to shift their assets as conditions change. The precious metals market certainly offers many short-term opportunities that are very attractive and should always be taken advantage of when possible. However, we prefer to focus on a long term disciplined approach that provides you with the best possible profit potential.

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