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| Above, Kennedy silver half dollars and Morgan silver dollars. Photo by Armand Vaquer. |
Silver traders and investors are excited over the rise in the metal's spot price this week.
This is great news and it is possible that silver could reach $50/toz. The last time it did so was in January 1980.
According to Kitco News:
(Kitco News) - After years of disappointment, renewed excitement is building in the silver market as prices rise solidly above $35 an ounce, reaching their highest level in 13 years.
Spot silver last traded at $35.76 an ounce and is up 8.7% so far this week—its best performance since early May—after prices bounced off initial support above $28.50 an ounce.
Jim Wyckoff, Senior Market Strategist at Kitco.com, said this breakout rally has been brewing for a while and may have more upside.
“Since gold scored a new record high of $3,485.60 an ounce, based on nearby Comex futures in April, I have maintained that silver appears to be a value-buying opportunity,” he said. “Right now, for silver, it’s very likely 'Katie, bar the door' to the upside.”
As for silver’s upside potential, many analysts continue to monitor the gold/silver ratio. While silver has significantly outperformed gold this week—with the ratio falling 5.5% to 94—the historical average is around 60.
Wyckoff added that there is solid potential for silver prices to test resistance at $40, with many analysts now eyeing the all-time record high of $50.36 an ounce set back in January 1980.
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