Market Nuggets: Casey Research's Clark: Buying Opportunity May Be Shaping Up In Silver

12 August 2011, 11:28 a.m.
By Kitco News
http://www.kitco.com/

(Kitco News) -- A buying opportunity may be shaping up for silver after the metal dropped earlier this week, says Jeff Clark, senior precious-metals analyst with Casey Research. Silver fell Tuesday even though gold hit nominal records. “Unlike gold, silver is largely consumed as an industrial metal,” he says. “On Tuesday, fear of dropping industrial demand seems to have overtaken investment demand for silver as a monetary metal.” Silver tends to be more volatile than gold both on the upside and downside, he says. “And that can create buying opportunities...such as we believe may be shaping up right now,” he says. Eventually, he points out, silver has always followed gold since it is a monetary metal as well. “In fact, the word for money in Spanish, French and other languages is ‘silver,’” he says. “That means that if blood on the streets and panic in the broader markets push gold up while pushing silver down, silver should eventually rocket back with higher percentage gains. This is what happened after the 2008 crash, when silver corrected harder than gold.”

By Allen Sykora of Kitco News; asykora@kitco.com