The scene is set for silver to move a lot higher over the coming months so you need to be in position now.

The United States has kept its interest rates on hold for now with some commentators anticipating rate reductions further down the line. If the rate were to rise any further then the housing market would be in even more trouble than it is already. So given a choice between house repossessions caused by higher rates or allowing the dollar to devalue a little more, what’s it going to be? Since 1971 the dollar had lost 97% of its value so historically there hasn’t been that much interest in preserving its spending power. So our guess is that it will be allowed to drift lower but at a controlled rate that will suit the Feds. The upside, if there is one, is that American goods and services will be cheaper and therefore more competitive when compared with the current wave of cheap imports that land on America’s doorstep every day.

So once the dollar starts to sink (some say that the ‘82’ level is the technical support level that it most not break) then will see some serious money flowing in to the precious metals sector. Gold is the obvious choice however silver is a small market place so it won’t take much of a spill over in to silver for silver to really move.

The chart for silver encourages us, noting that each time it is sold off it does not fall as far as it did the time before. There is an upward channel forming giving us prior notice of the next move north. All we need now is an ignition. Someone or an event that will kick start this run and from there it will move quickly so we must hang on to a position in silver one way or another.

We are still expecting to see silver hit the $20.0 mark this year so we are on the lookout for under valued silver mining assets to supplement what we already have. Endeavour Silver Corporation being the latest additional investment to our stable.

23 March 2007