silver will be up in next few weeks as QE gets back on the table.. I expect a rally in silver today/tonight as the currency correction takes place bringing the price back in line with the $US recent depreciation. This is a little unusual to see PM prices fall as the $US depreciates. This makes the PMs more expensive in real $US terms but cheaper for others around the world as their currency appreciation is coupled with a falling PM orice. I think this illustrates a more global move away from the $US and i expect that QE 3,4,5 and so on will see a move away from using the $US as a standard to price these things. More recently china/australia, japan and china, and others are moving away from using the $US as their trading currency pair. So maybe 3 months $30 bucks might be right, but the time is coming at a faster rate now where precious metals will test their previous highs. 2000 buck for gold and 50 bucks for silver. It wont be a 2 year thing so I say go long buy physical plus mining shares that have substance in the PM stakes. Remember CCU has an agreement with the CBA to pay back their loan in SILVER not cash!! An endorsement that the banks mining professional (they hire to give expert advice on mining potential) believes there is more than enough silver in the ground to pay off loans. Also directors have bought placement shares in this company at much higher prices than the ones quoted today. If they fall a little, I will be buying more.
CCU Price at posting:
66.5¢ Sentiment: LT Buy Disclosure: Held
