Is Silver Setting Up For Significant Upside Price Action This Month?
CHICAGO (Aug 9) This year's dramatic gold and silver price declines are big news. However, since July price lows, some gold and silver analyst are suggesting a price bounce may now be underway, particularly in silver, which at a fundamental level may possess even more positive qualities beyond gold's at present to contribute to a rally.
Silver is used more broadly than gold for industrial purposes. Silver demand overseas, particularly in Southwest Asia, has recently been reported to be reaching record levels. Silver coin demand in North America is stronger than ever on certain measures. HSBC, a significant bullion bank, sees silver prices remaining in a new and lower trading range this year, but still sees a potential upside target for the precious metal 3 points higher than its current price occurring sometime before year's end. Recent options activity in silver also appears more bullish. Some indications of possible supply growth reductions in silver in the near-term currently exist. And forces inducing the central bank's generally loose monetary policy in the United States, a high unemployment level in particular, appear unresolved.