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In this time of economic uncertainty, investing in silver and other precious metals instruments is a must.
By devoting even a small portion of a portfolio to precious metals, investors gain valuable protection against inflation, stock market drops, and any other repercussions from Washington's debt-ceiling drama.
So far this year, investing in silver has been rocky. Silver prices have dropped nearly 30%, likely under pressure in the short term due to sluggish key factors in global markets.
But despite the short-term performance, silver prices are still a whopping 250% higher than its 2008 lows.
And long-term prospects look particularly bullish.
Taking these factors into account, plus 2013's fresh lows, means right now is a great time to get on board with silver.
So, why not learn how to invest in silver from the very best? Money Morning's 20-year veteran of the resource market, Peter Krauth, tells readers how to play the white metal.
Investing in Silver: Where Prices Are Headed Next
Krauth highlighted several important factors that will push silver prices higher in the coming months:
- Silver has a tendency to follow gold's lead, so our first step is to look at how the yellow metal has been performing. Gold bottomed in late June and then set a new higher low mid-October at $1,275. At $1,350, gold is now trading slightly above its 50-day moving average - a bullish technical signal.
- Silver has followed much the same pattern, and at $22.70 recently traded just above its own 50-day moving average, which is another bullish technical signal.
- In the chart below, I've outlined in blue how the silver price has stayed above the blue support line and recently broke above the wedge formation. The next price targets are $23, then $24.50, then $29, as indicated in orange.