Friday, 6 May 2011

Prospect of silver hitting $80 shakes up stock, ETF markets

http://www.ibtimes.com/articles/139947/20110501/silver-80-ounce-stocks-market-etf-boom-gold-ratio-100.htm

As of  May 1- But still.....

The Bank of America Merrill Lynch said in a report that there was strong possibility of silver hitting $80 an ounce, causing ripples in the silver stock and ETF markets.

There is an increasing belief in markets that the silver boom is far from over; it does have legs and is not just a momentary upward spurt caused by more investors hedging against inflation and paper money.


The Bank of America Merrill Lynch report postulates that "silver is a key 2011 trade idea within our continuation of the secular bull market for commodities theme.” The bank says it expects to see silver re-testing the 1980 high of above $50 and that the longer-term pattern is bullish.


A silver super cycle boom will be boon for Silver Wheaton Corp. (NYSE: SLW), the report says.


"If the price of silver would catch up to the historic gold-to-silver ratio today, the price of silver would be $95.87/oz. And as gold prices continue to rise, the price of silver would easily exceed $100/oz," he said.




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