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Silver Makes 30-year High

I wrote about Silver being overlooked as a trade equally good, if not better, than Gold back in the summer. The price was $18.5 then and today Silver again set new 30-year highs with December contracts moving up to $24.84. A 34% increase in 5/6 months.

Some of this increase in price is due to dollar weakness, but it is also due to the realisation that the world could actually run out of easily retrievable Silver before any other precious metal. Add in a couple of lawsuits against JP Morgan and HSBC for allegedly manipulating the Silver price and you have quite an explosive mix.

There are several commodity experts (which I am not) who speculate that any aggressive buying of Silver by hedge funds and similar may cause a dramatic scramble to cover short positions, triggering the price to sky-rocket to … well, $50 has been mentioned!

I have taken a small position in Silver for a bit of fun and may accumulate over the coming months.

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