Tuesday, July 03, 2007

Silver's next big leg up

Was musing on thursday that it really feels like July 2005.

When the July 7th 2005 London Transport Bombings occurred.

My bet was the standard policy response was to flood the market with liquidity.

The crisis this time I mused, was going to be the continued mortgage carnage (yes, subprime and not subprime included) in America. And with the printing of money, precious metals, esp. Silver will off to the races.

Silver went from $7 an oz all the way to $15 per oz early 2006.

And then lo and behold. On Friday in London. Another attempted bombing. Together with attacks in Glasgow.

The repeat of these events are eerie to say the least.

But if Silver were to repeat those rises in the same percentage. We will see $28 an oz early next year.

US$28 an oz!

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