Learn Why Silver Crossed The $18 Line And Is Staying There Directly At Precious-Metal.org

April 12, 2010 - Two weeks ago, it was the $17 line and last week the $18 line that silver crossed. It stayed there comfortable at $18.22.

Do we see $19 an ounce just around the corner?

“If silver takes out $17.50, it could run up to $19,” said David Morgan recently. Morgan, founder of www.silver-investor.com, made the remark when silver was yet trying to move away from the decade ending $16.99 an ounce.

In an interview held recently and published in Morgan’s official website, Morgan, referring to silver, was quoted: “We have a 10-year bull market behind us and in my view is we have several more years to go.”

In the same interview, Morgan expressed his trust in precious metals, especially gold and silver, as hedge in the evolving global currency crisis. He said: “There’s none better than gold – and silver is just as good – if you’re worried about a crisis hedge.”

He remarked that in the event of panic buying, more of the money that would move in to metals would go for the cheaper metal which is silver, resulting in the adjustment of silver-gold ratio from 60:1 down to even a possible 10:1.”because there’ll be more money, relatively speaking, moving into silver than in the past” because of silver’s lower price. The classic ratio, however, is 16:1 according to Morgan

Unlike gold, silver is consumed, it being also an industrial metal. According to Morgan, industrial demand on silver was roughly 35% of the total market in 2001 and currently in 2010 54% of the total market. 

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Danny Burns

Senior Staff Writer - Precious-Metal.org