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Silver and Gold Prices Headed Up or Down?

 

After this week’s mini bull run in gold and silver investors are scratching their heads wondering the next direction for precious metals.  While some financial analysts warn that gold may see a correction of 10 to 20 % over the summer, and that silver may test this month’s lows of around the 32$ level and make new lows around the 27 t0 30$ level, most share a bullish outlook for the metals in both the short term and long term. According to a weekly Kitco survey of bullion dealers, investment banks, futures traders, and technical chart analysts, 73% share a bullish outlook for gold in the upcoming week (http://www.kitco.com/kgs/goldsurvey_may27.2011.html). The same survey reported that only 15% of respondents share a bearish outlook for gold in the upcoming week,  and roughly 10% share a neutral outlook for the metal. Most believe that Euro-zone sovereign debt  issues are enough to continue a short term rally in gold.

Silver prices are a little less simple to peg down. Experienced investors are aware that the metal is extremely speculative; as was proven just a month ago when silver plummeted roughly 30% on five consecutive margin hikes in the future markets.  Many proclaim that silver has regained its bullish momentum, which will soon push the metal back over the 50$ level. On the other hand, some believe that the metal will remain neutral in the upcoming months and likely trade between a range of 32 to 38$. Despite looming uncertainty facing the precious metals markets, current prices are more than enough to attract people in the New Orleans area to cash in on selling their gold and silver at all time historical highs. Just the other day a lady sold an old  and tarnished miss matched set of sterling silverware for 1895$. That’s a house note, a couple of car payments, or a four day vacation. If you have been holding on to some scrap or inherited gold or silver, now is the time to cash in.

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