Kitco: Silver Looks to Join Gold’s Bullish Trend

After months of sideways trading, gold prices have been pushing higher. The metal has now moved past $2,000 per ounce in recent sessions. And that trend looks likely to continue for several reasons.

First, investors looking for a safe haven in declining markets can turn to gold. Second, with inflation holding higher than expected, the metal looks like it could benefit. And central banks continue to be net buyers of the metal.

When gold goes higher in a sustained trend, investors can get a better percentage return by investing in silver. The metal is more volatile, but, trading just over $23 per ounce, is easier to trade.

Silver prices are still down 50 percent from their 2011 peak. That’s even as gold prices are near their prior all-time highs. And silver is still off its 52-week high of about $25.70 per ounce.

However, it has fund strength and strong buyer interest when the price has gotten down to the $21 range.

A breakthrough for gold could lead to a “catch up” rally for silver. And it could mean that gold stocks with a heavy mix of silver could fare best.

Wheaton Precious Metals (WMP) is a major gold royalty operation with a sizeable exposure to silver. It’s fared well this year, with shares up over 30 percent.

It still has more room to run with gold prices trending higher. Currently, it’s also paying a 1.4 percent dividend.

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