By Dave Kansas
February 8, 2011
Old Yeller’s less precious cousin is continuing its recent tear, with Silver for February delivery surging more than 3% on the Comex to close at $30.27/oz. Silver has gained about 13% since Jan. 25 and its close above $30 is considered technically promising. Silver has been up four straight sessions and seven of the last eight.
Meanwhile, the barbarous relic has had a tougher time of late. Gold for February delivery did manage to gain 1.2% on the Comex to close at $1363.40, snapping a two-session win streak.
As noted yesterday, silver continues to outperform gold. Over the past 52 weeks, gold is up an impressive 26.6%. Silver is up an eye-watering 96.2% over that same period.
Precious metals are benefiting from rising inflation fears and increased concerns about weakening currencies. Gold has gotten too dear for some, leading to greater interest in so-called “poor man’s gold.” Silver does have more industrial uses than gold, but it still has a strong hold on those who are deeply concerned about the future and want to have a dependable store of value.
The U.S. Mint’s silver coin selling program reflects the rising interest in silver. In January, the Mint said it sold 6.4 million American Eagle one-ounce silver bullion coins – about 50% higher than any prior month of sales, according to Mineweb.
Link:
http://www.midasletter.com/index.php/silver-streak-poor-man%E2%80%99s-gold-keeps-surging/
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