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Silver Stocks: "Silver acts like Gold on steroids"
Pinnacle Digest writes: Roy-Byrne believes that we are in a confirmed bull-market for both gold and silver and that in these secular bull markets, "silver acts like Gold on steroids". He explains that the market made an obvious cyclical top last spring and our suffering between then and now is over. A very bullish long-term outlook for silver and silver equities is this writer's stance.
The gains silver and silver equities experienced from late 2008 into 2011 have been corrected and digested. Most silver and precious metal indices lost better than 50% from their 2010 and 2011 highs. From May to July the market tested its lows successfully and formed support. The recent advance this September has confirmed the lows and also confirms that we are likely in a new cyclical bull market.
The long-term technical outlook for silver producers is potentially nothing short of extremely bullish. We say potentially because nothing is certain in this manipulated market.
It should be noted that Roy-Byrne's “super bullish outcome” is predicated on Silver breaking through $50/oz. With Bernanke on the rampage and gold flirting with $1800 an ounce, our team believes $50 silver is a very realistic and conservative prediction for the medium-term.
Roy-Byrne confirms what we know. He reminds us that, "We are moving closer to the beginning of the bubble phase in this bull market. Third, in a bull move, Silver acts like Gold on steroids." From a percentage standpoint, it is very easy for silver to outperform gold. Keep in mind silver will always be second best when it comes to preserving your wealth as there is no better option than gold in that respect.
Before getting too excited about silver’s expected rise, consider that similar to the gold stocks, Roy-Byrne and his team see an upcoming pause or pullback in silver stocks over the next month. October is typically a weak month as we all know. Many stocks have rebounded strongly from their lows and a pause or correction in October stands between gold and silver miners and a retest of old highs in the winter. Our team is confident those highs will be hit on the backs of record gold and silver prices.