Are we going to see Silver Move Into Record Highs?

This is the start of the next big leg higher in the precious metals.  We’re at a new record closing high in gold today, that is extraordinary considering it is happening against the headwind of a stronger dollar.  There is an important message here, money fleeing the Euro is not just going to the dollar, it’s flowing into the metal of kings.

People are recognizing that the only true safe haven is the precious metals.  There are still so few people talking about gold and silver having an explosive summer.  The fact that there is still so little bullish sentiment just reconfirms my view that gold and silver are ready to rocket higher. 

Policy-makers on both sides of the Atlantic still don’t get it.  They don’t understand that the problem is too much debt.  You can’t solve a debt problem by piling on more debt.  Greece is bankrupt, as is Ireland and half of the European countries.

Most of the big banks over there aren’t much better off given that their portfolios are chalked full of bad sovereign debts.  But the same thing is true on the other side of the Atlantic Eric.  Policy-makers in the US can’t even agree to make spending cuts in the future, let alone where they should be made which is right here and now in order to reduce government spending and the burden it places on the wealth-creating private sector.

We’ve seen yet again that support for silver at $35 was tested successfully.  This is a huge and powerful base and with gold already probing record highs, silver won’t be far behind.....  

One never knows exactly how the markets will unfold, but my sense is that we only have several more days of silver in the 30’s.  Once silver clears $38 on a closing basis, you are going to get back into the mid 40’s in a heartbeat.

I am beginning to see the strength in the gold mining shares over the last few trading sessions.  Both the XAU and HUI are within their multi-month trading ranges, but look for both of them to begin probing overhead resistance which would be the 225 area for the XAU and 560 for the HUI.  It’s important to note that the HUI is only 3% away from that level, which could happen tomorrow if we have another big up-day like today.

The action in gold and silver so far this summer indicates that this is in fact poised to be explosive on the upside.  Nobody is talking about this, but it could be a reality in short order.  Here it is nearly 30 years after the breathtaking summer of 1982, and I think history is about to repeat all over again.