Silver Gets A Pick-Me-Up From Sinking US Dollar
After falling below $19 last week on the back of continued concern about US Federal Reserve Chairman Ben Bernanke's talk of "tapering" quantitative easing, silver has since made a slight recovery, rising as high as $19.87 per ounce this week.
Silver hit $19.87 early Monday morning, and after sinking to $19.48 not long after, evened out at around $19.60, continuing at that level until Tuesday morning. From there, it sank to $19.34, its low for the week, before climbing up to $19.81 late Wednesday.
Responsibility for the white metal's upward movement this week has been placed on the US dollar, which has sent silver prices up as it moves lower, according to Reuters.Silver bulls will be happy to hear that Rick Mills of Aheadoftheherd.com expects these gains to continue. In a note released this week, he said he believes that along with cobalt and uranium, silver holds opportunities for investors. Pointing out that sales of silver bullion are "constantly breaking records," he posed the question, "when was the last time you heard of a bull market ending, in any commodity, let alone a money metal like silver, with a period of sustained, record physical demand two years after peak prices?" He thinks that the precious metals bull market is not yet over and, as a result, the white metal will soar "much sooner than later." Silver took a slight downward turn today, sinking as low as $19.41 before closing at $19.52 in London. Dundee survey A Dundee Capital Markets silver sector survey released Wednesday states that Silver Wheaton (TSX:SLW,NYSE:SLW) and Tahoe Resources (TSX:THO,NYSE:TAHO) are "best positioned going into the lower silver price environment" in that Silver Wheaton will not need to change its business model — even if prices fall to $15 per ounce — and that Tahoe's Escobal project is the lowest-cost mine that the firm covers.
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