News Bites
Stay patient; how silver price's next breakout could happen
(Kitco News) - Although unable to hold a 3% rally late last week, the silver price is still in good shape and investors just have to be patient, according to one market analyst.
David Smith, senior analyst at the Morgan Report, said that although silver fell sharply from its highs Friday, the price is still holding support at $18 an ounce.
“It’s very common for attempts to push up through to resistance to fail the first time,” he said. “The silver price still managed to close above $18, which is a breakout on the descending triangle chart.”
Looking at the silver miners, Smith said that prices still need to push higher for producers to see the same effects of gold companies. With third-quarter earnings starting to trickle out of the mining sector, gold producers are seeing healthy margins and increased cash flows with gold prices up about 16% so far this year. To see the same conditions for silver producers, Smith said that prices need to trade close to $20 an ounce.
