We would keep an eye on Silver today, which has underperformed substantially compared to Gold in the past few weeks. With prices still below the $20.00 level, we might find attractive entry opportunities here. In the past when the balance sheet from the FED increased, positive developments in prices would follow and we would expect the same kind of reaction over the next couple of months.
A long term trade could, therefore, be of most value when it comes to XAG/USD, which has not been able to pick up momentum despite the sharp price appreciation of other metals. Valuations on the lower end make the investment potentially interesting for us over the long run. Apart from Silver mining companies, we would expect the price of the metal to increase towards the mid $25.00 area. Another reason is the demand in the economy which when reopened could also boost prices further.
