A Wake-Up Call For Silver Investors…

Analysis On Silver’s Break Out Move!

Dear Resource Hunter,

The next bout of silver fever is coming.

Remember back in April of 2011? That’s the last time silver fever ignited the market. By the time the frenzy was over silver reached a new all-time high just below $50 an ounce.

Today the stage is being set for the next round of silver gains. In fact, in the past few days the breakout move has already begun…

Today’s silver market is heating up. After trading in a channel around $28 per ounce the metal has started a breakout move above.

Earlier this week, according to Kitco’s gold expert Jim Wyckoff, “Prices closed near the session high, hit a fresh two-month high and scored a bullish ‘outside day’ up on the daily bar chart.”

“[This] price action” Wyckoff tells us, “could be the beginning of a bullish upside breakout from a sideways and choppy trading range on the daily bar chart. Silver bulls and bears are now back on a level near-term technical playing field, but bulls do have fresh upside momentum.”

I’m looking for this recent momentum to spark another round of silver fever, sending the metal higher. Indeed, it’s a lot of the same momentum that we’ve talked about in the past few weeks in regards to gold. With more inflationary pressure building up in the world’s monetary system, something’s about to break.

The breaking point is going to come in the form of more global stimulus from the Fed, ECB and other central banks. When (not if) this happens, precious metals are going to shoot higher. As we’ve said before this could rocket gold out of its recent trading range and on to loftier goals — $1750 and eventually to new all-time highs.

But in a good uptrend for gold, silver can do even better.

You see, with silver’s massive pullback in our rearview, there are several price targets loaming.

Fact is, today the market is acting like 2011 never happened! The price per ounce has been meandering around $28 bucks for the past few months forming a base, similar to prices we saw prior to silver’s epic uptrend.

The next stop for the metal could be a strong jump towards $40 an ounce – heck prices for silver were at $43 this time last year. At minimum, a jump above $40 would represent a 33% rise in silver from today’s prices.

Compare that to a move in the gold market and you’ll see that silver has a lot more upside, without even hitting its recent highs.

Referring back to what Kitco’s Wyckoff says about fresh momentum for the metal, this week could be the start of silver’s next move. In the past three trading days silver is up over 5%.

More importantly the metal looks to have broken out of its recent trading channel around $28, slingshotting above the 50, 100 and 200-day moving averages (an indication to traders that this move holds some weight.)

The key question at this point is what to buy, the metal or the miners?

Unfortunately I’m going to leave you on a cliffhanger today. Fact is, I’m neck-deep in silver research finding the best way to play this move. For the full “metal or miner” debate and some specific ways to play silver’s next run, tune in for tomorrow’s issue.

With silver fever in the air, you won’t want to miss it!

Keep your boots muddy,

Matt Insley

P.S. The silver story is connected at the hip to what’s happening in the global economy. In particular the global currency system looks set to make another drastic gasp for air. It’s a dire situation to be sure, but could mean great things for precious metals like silver. If you’re worried about protecting your wealth in times of turmoil, you won’t want to miss this new presentation.

Today’s Nugget: In the past few days, silver broke out of its month-long trading channel around $28. This could be a good indication that the next uptrend for silver is about to start. Plus, silver’s recent move catapulted the metal well above its 200-day moving average, an indication that the bulls have the momentum. Now’s the time to look at silver, it could prove more explosive than gold. For full coverage on our favorite gold and silver plays, click here.

Prices:

G: $1641.22
S: $29.40
O: $96.66
D: 81.91 UP 0.01%
C: 307.46 DOWN 0.05%
S: 1410.84

News:

Shell to Spend $1 Billion per Year on China Shale

Shell’s top China Executive recently re-affirmed the company’s plan to spend $1 billion per year developing China’s shale gas saying, “”If there has been an adjustment to that pledge, it could only be an upward revision”, Reuters reports. China is estimated to hold the world’s largest reserves of the unconventional gas.

China / North Korea to Strike Rare Earth Deal

Last week, the Chinese Vice Minister of Commerce issued a statement calling for more North Korean investment. It is believed China is aiming to bolster its rare earth monopoly by helping North Korea develop its mining industry, Business Insider reports. North Korea is thought to sit on $6 trillion worth of minerals, including a large amount of rare earth metals.

A Wake-Up Call For Silver Investors… was originally featured in The Daily Resource Hunter. Check out the newest Daily Resource Hunter research video “The Price of Gas Explained”.

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