I am also very bullish for silver in 2011. In the short to medium term I can't see any reasons for it breaking from it's current upward trend.
Despite numerous government measures - quite predictable ones, the US economy has failed to ignite. The government has been printing more money in 'hope' of something happening which I think is very lazy policy on their part.
The flow on - the world has last confidence in the US economy and the governments management of it. 'Confidence' is the key ingredient or lack their of and currently the world has none in the US and in doing so has desserted the greenback.
If people don't want the US dollar, then naturally everything that you measure in 'US dollars' is going to rise.... other currencies, gold, silver, oil etc.
I think we're in the midst of a fundamental shift. The US government has been racking up a 'tab' for years and I'm not convinced they can afford the bill. In a year or so I wouldn't be surprised if the US dollar starts to get dropped as the benhcmark index in which to measure value.
But with the current state of the EU I'm not so convinced it's currency will replace it.
Any-yuan else got a theory on this matter?
CCU Price at posting:
65.6¢ Sentiment: Buy Disclosure: Held
