Spot silver is headed for another test of $42/ounce after recovering above $40. Breakout above $42 would offer a medium-term target of $46* (long-term $50).
* Target calculation: 42 + ( 42 – 38 ) = 46
2 Replies to “Silver edges higher”
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There’s a school of thought that says silver is currently underpriced compared to gold and we can expect it to rise faster in future for two reasons. Firstly, the silver/gold ratio in the earth’s crust is roughly 15:1 compared to a price ratio of close to 50:1 and secondly silver is getting scarcer because a lot of the silver mined each year is used in industrial processes whereas most of the gold ever mined is still in bank vaults, statues or around people’s necks.
Peter (Midas)
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