by Jeb Handwerger, 321Gold.com:
An old melody advises us to look for the silver lining whenever dark clouds appear in the blue. There is economic and political upheaval all over the world, especially in the South China Seas. This may directly affect the world’s supply of industrial metals such as graphite, rare earths, molybdenum and tungsten.
Today we direct our attention to an area where silver is shining. Poor man’s gold may come into prominence shortly and provide our subscribers with possible profits.
The silver battlefield is filled with bulls and bears fighting for dominance. Recently, the poor man’s gold has dropped to the $26 area. The struggle continues between the opposing sides. The bulls and bears are keeping their eye on this critical support level at 2011 lows.
We sense that the bulls will prevail at this mark. The reasons to buy silver now is compelling. The U.S. dollar may have already reached an interim top as investors realize that the employment situation in the U.S. is still a concern and that the Federal Reserve will need to implement some form of QE3 to devalue the dollar to pay off soaring deficits and promote inflation possibly announced at the end of this month in Jackson Hole.