SOURCE: Lloyds Asset Management

Lloyds Asset Management

February 11, 2010 16:55 ET

Lowest Buying Price for Silver in Months

120 Day Silver Predictions May Go Well Above $17.40, According to Lloyds Asset Management

WEST PALM BEACH, FL--(Marketwire - February 11, 2010) - There's been a great deal of pressure on silver lately, sinking it down to near $14, the lowest it has been in months. Interestingly however, silver predictions on the wire for the next 120 days remain remarkably optimistic and Lloyds Asset Management, known for its on-the-mark predictions in silver and other precious metals, has joined in the optimism and predicts silver will trade above $17.40 by the first of May.

SILVER OPTIMISM REMAINS STRONG

CEO James Burbage III sees a new support for silver forming as an opportunity for short-term chipping and putting during the market consolidation. "It looks to me that this information on the dollar rally shows a new support line that has been placed for silver," Burbage said. "We see an opportunity not only for some short term chipping and putting as the market consolidates between $21 and $16 but also the possibility for the shorts to shake out the weaker positions; the small retail clients."

Large short traders have capitalized on the market downturn as many stop loss-orders were automatically executed, and smaller investors sold entire positions. "With the consolidation behind us now, the market can be witnessed making a healthy correction that may test the recent high from March 2008," claimed Burbage.

SILVER PUSHES NEW HIGHS

This would be approximately 4 to 5 dollars of market movement for bull investors to try and capitalize on in 2010. With nothing historic happening in the market; no new banks going out of business, and the dollar holding strong on the index, it would appear the recent decline is simply the result of a market testing its own resistance levels -- which all markets do. Lloyds Asset Management believes a several dollar increase to be a fairly conservative prediction of where silver could be trading in the next 120 days.

Burbage believes that silver will be back above $17.40 by May this year. "If our May expectations are met, watch for silver to take another run at historical levels of almost $22 per ounce," Burbage stated. "If $22 is breached in 2010, watch out! I could see silver trading as high as $28 to $30 within just days of a historical high price breach."