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Silver Continues To Lead The Precious Metals Race

Apr. 15, 2011 11:02 AM ET
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 Gold and silver have both been very strong as of late moving higher almost on a daily basis. This morning silver is making a fresh new 31 year high trading above $42.00 an ounce this morning. Gold is making another fresh new all time high trading around $1480.00 an ounce. As we all know by know, as long as central banks around the world continue to print money at an alarming rate these precious metals can continue to climb higher.

Many of the talking heads in the financial media continue to call gold and silver a bubble. Bubbles occur when everyone in the public own something and they cannot get enough of it. Personally, I bearly know any traders that own gold, and silver, let along the public. Sure the public owns some jewelry, and maybe some silverware, however, they do not own actual bullion. Therefore, it is very difficult to call gold, and silver, a bubble. These precious metals could have a sharp correction sometime this year if the U.S. Dollar and other currencies rise in price. After all gold has been rising for 10 years now. Corrections are a natural process in any bull run. The key to gold and silver is the action by the central banks. Gold and silver are the Federal Reserve's and most other central banks worst nightmare. These precious metals tell you that the currency is being devalued in order to inflate asset prices.

The popular and highly traded iShare Silver Trust(NYSE:SLV) is trading higher by 0.53 cents to $41.61 a share. The SLV will have intra-day resistance around the $42.00 area. The daily chart remains in a strong uptrend, however, it is starting to get a bit extended. The SPDR Gold Shares(NYSE:GLD) are trading higher by 0.52 cents to $144.33 a share. The intra-day resistance area for teh GLD will be around the $144.50 level and more around $145.00.

Nicholas Santiago

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