FX Street: Will Silver Surprising Summer Surge Continue?

Article by Stefan Gleason in FX Street

Just a few weeks ago, silver naysayers told us we’d have to wait months, or even years, before the market made a big move. Now they are eating their words!

The white-hot metal surged past $18.50/oz this morning to reach its highest level in more than two years.

Silver is up more than 13% in the month of August alone, a time when many precious metals analysts had expected summer doldrums. Even some long-term silver bulls became short-term bears. 

I fully believe that what we're seeing in gold and silver, is the beginning of what may evolve into the greatest metals' bull market in which you and I have ever participated. 

In the early 2000's, I stated my belief that, before the public-mania phase had been completed a number of years hence, we would see silver prices over $150 an ounce. 

This may sound hard to believe. 

The reality is this: Trying to trade precious metals market day to day or week to week is almost always a mistake. The trends that really matter occur over periods of months to years.

If you missed the opportunity to buy silver while it was still on the ground floor because you worried prices might sink into the basement, there are a couple good reasons not to fret. 

First, silver under $20/oz. is still an amazing bargain. It could double in price and still sit well below its all-time high of over $49/oz. Silver remains cheap versus stocks, bonds, and even gold. 

To read this article in FX Street in its entirety and view the relevant charts, click here.