Michael Purves, chief market strategist at BGC Financial: Silver Poised to Hit New Highs This Year

According to Michael Purves, chief market strategist at BGC Financial, silver is apt to warrant more attention. “Silver is a poor man’s gold and it’s also very volatile,” he says. “I think a lot of that volatility will be skewed to the upside”. And by “upside,” he means a move to all time nominal highs. The semi-precious is “setting up for something more powerful; we could see $50 later this year,” he states.   To support his case Purves notes the encouraging price action since last May when silver pushed that same $50 level before collapsing hideously. The bright side of that sell-off is that silver never returned to whence it came before going parabolic at about $19. A true bubble would have taken back all the gains; silver may still do so but at least for now it remains almost 70% higher than it was in September of 2010.

The drivers for a move higher are silver’s status as a hard money and industrial demand. In a world of systemic currency abuse and slow yet positive growth, silver wins, at least as Purves sees it.

See the full “Breakout” interview below:

Related ETFs: (NYSEArca:SLV), (NYSEArca:SIL), (NYSEArca:GLD), (NYSEArca:GDX), (NYSEArca:GDXJ)

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