What Experts Predict For The New Silver Bull Market

The Outlook
Like gold, the price of silver has surged following Britain's vote to leave the European Union, with investors purchasing the "safe haven" metals to protect wealth in the event other markets falter. According to an article published on July 19 on INN Daily, the silver price has gone up more than 43% year-to-date, "leap-frogging ahead of gold post-Brexit."

Frank Holmes of U.S. Global Investors, in a July 11 post, notes that silver tops his "Periodic Table of Commodity Returns" for the first half of 2016. "Silver demand had a phenomenal 2015, with retail investment and jewelry fabrication both reaching all-time highs," Holmes wrote. Add to that an increase in demand for silver for photovoltaics, and now Brexit, and the first half of the year has "has been highly constructive. . ." Holmes notes that some experts believe the silver price will reach between $25 and $32 per ounce by year-end. The metal currently trades for ~$19.90/ounce.

Though optimism is prevalent, investors can expect some volatility. Because silver is both "currency and commodity," used in a variety of industrial and other uses, its value is "more highly correlated with stocks" than the value of gold, INN Daily reports.

The potential for volatility is also reflected in the comments of technical analyst Clive Maund, who declared the silver bull market underway in a Gold Report article on July 11. While his optimism was clear, Maund did note that a correction could come into play. "If you are a long-term investor, you may simply decide to ride out any correction," the analyst wrote. But short-term investors might want to "take some money off the table here if [they] are long the sector, taking advantage of the comparatively high prices now prevailing."

The Companies
A number of companies are positioned to benefit as the silver bull continues. As expert David Kranzler explains in the Mining Stock Journal, ". . .mining stocks are a 'derivative' of gold/silver, meaning their intrinsic value as companies is derived from the price of gold/silver. They are leveraged plays on the price of the metals."

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