Sprott Plans to Buy Another $32 Million Worth of Silver

Sprott is planning to buy another $32 million worth of silver. So what does this mean for future silver prices? Lets take a look at how silver has been performing in relation to gold. Usually Silver prices spike one way or another when gold prices do. However, this has not been the case lately, as gold is setting new price records while silver has remained steady between the $39-$42 range.

Does this change in behavior mean a rerating is taking place? Probably not yet. Silver investors are naturally nervous, particularly following the sharp fall in their favored precious metal at the beginning of May. A fall that was so severe that it may have seen some new investors in the metal withdraw from silver forever. This was an unwise move, as too many investors are jumping at a moments notice if silver spikes too fast up or down or. It is taking time to get over this setback, but in recent days seems to be recovering.

There is one move apparently under way that could drive silver very rapidly to big new highs. Pre-eminent silver bull, Eric Sprott, has told King World News that he will be selling a further 2 million shares in the Sprott Physical Silver Trust, which will make available another $32 million that will be used to buy physical silver to that value. Sourcing the 800,000 ounces or so of physical metal may put a squeeze on the market if some silver analysts are correct, and this could cause the silver price to accelerate- and along with gold’s spectacular surge could drive silver back to the $50 level and higher very quickly.

If this is the case (which it seems to be), the true silver bulls would just see this as a great buying opportunity in what they view as a long term upwards bull market in precious metals within which category they see silver as the potential star performer. What does this mean for you? Well all along we have been telling you to get invested in silver. There are a number of ways you can do that, with the most popular being Silver Bars and Coins.

Silver looks like it may be on the verge of another price spike. The news from Sprott only magnifies the fact that silver is the very best precious metal to be invested in for the long run.

View the original article here