On April 24th, the price of silver reached nearly $50 an ounce before a hasty retreat to $32.32. Ask some, and silver’s impressive move from under $20 an ounce just eight months earlier was a predictable bubble ready to pop. Others, however, say the move was inevitable considering market forces and the devaluation of global currencies.
On April 25th, the day silver began its sharp correction, Hakan Kaya, a commodities portfolio manager at Neuberger Berman an international asset management company with almost $200 billion on the books said, “At current prices, we find it (silver) highly overvalued with no fundamental reasons backing it up.” This sentiment, shared by many, set the stage for a staggering 35% correction in less than three weeks.
But since the dramatic pullback in early May silver has recovered over $5.50 an ounce trading at $38.00. Eric Sprott, the founder of Sprott Asset Management is not surprised. Sprott calls silver “the best recommendation anyone could make this decade”, and sees silver going to $100 an ounce within the next 3 to 5 years. Recently, MiningFeeds.com featured Eric Sprott in, “Sprott still bullish on Silver” – CLICK HERE – to read the article.