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Silver is on track to make a comeback after being stuck in a range for so long, said Jim McDonald, CEO of Kootenay Silver, who said that the long-term bull cycle is not yet over.
“We’re expecting another breakout to come here in the silver price pretty soon. It’s a very interesting action on the gold market there a few weeks ago, when overnight in the Asian markets it spiked down to $1,690 [an ounce] very briefly, that was a real technical hold. The whole market scenario is very strong for the precious metals going forward,” McDonald told David Lin, anchor for Kitco News.
McDonald cited higher investment demand for silver as a potential catalyst for higher prices.
“I’m referring to investment demand here that has been set up due to the massive amount of currency injections that have been done around the world over the last year and a half, approximately. It’s never happened on this scale before and that creates debasement of purchasing power of those currencies all around the world,” he said. “That creates a very strong demand for bullion silver and bullion gold.”
While gold has breached new all-time highs, silver has struggled to touch its 2011 highs. This is because the long-term bull cycle has not finished yet, McDonald said.
“We think that silver is going to break out over that $30 [an ounce] mark pretty strongly and make a run on that $50 number, and probably surpass it this time, due to the backdrop that it’s against,” he said.
For updates on Kootenay Silver’s latest drill results and long-term plans, watch the video above. Follow David Lin on Twitter: @davidlin_TV.
By David Lin
For Kitco News
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