Where Could Silver Prices Go?

Mike Maroney: Good afternoon! It’s Thursday, August 30th. My name is Mike Maroney. Coming to you today from the Monex Precious Metals Studio. We’re going to do our Silver Centric video today and we’re going to talk a little bit about the 20-day moving average and how gold has closed above the 20-day moving average, but silver has failed to follow gold’s suit. Does this mean that silver is a buying opportunity or does this mean that silver potentially could go lower?

Let’s start out with what happened back on June 15th, both gold and silver broke below the 20-day moving average, and since that point, silver has remained below the 20-day moving average–which sits right now right at $14.91 for silver and $1,205.00 for gold. Now, gold last Friday broke back above the 20-day and for the last five days we’ve been able to maintain closing prices above that 20-day moving average. Now, if you watch that closely, you’ll find that typically, if gold breaks out, silver isn’t very far behind. So, many of the traders are waiting for tomorrow’s close, which will be both a weekly and monthly close and if gold can maintain a price above that 20-day moving average, they will potentially move money into silver as an undervalued asset within the sector. Now, if we look at silver, so far this decade, the lowest price we’ve traded at is $13.60. So, literally today, when we traded as low at $14.45, we’re within 5% of this decade’s low. Now, this decade’s high is $49.80. So, obviously at $14.45, we would have to more than triple in order to reach this decade’s high. Now, obviously, if you look at this decade’s low and this decade’s high, you would have to say that silver is somewhat undervalued. We have a lot of tumultuous events that potentially could cause… could cause volatility within the financial markets in September. So, now may be a great time to look at adding precious metals to your portfolio, especially silver, when you consider where it trades today, where it’s been, and where it could be headed.

Give us a call at Monex. So, we can talk to you about this opportunity and find out if precious metals make sense for your individual portfolio. Thank you.