Silver Pullback Is 'Little Hiccup'—Will Hit ‘At Least $60’
Silver prices plunged Tuesdayafter hitting fresh 31-year highs in the previous session, but the pullback is merely a “little hiccup,” said Phillip Streible, senior market strategist at Lind-Waldock.
“[The silver rally’s] got fundamentals behind it—this is not an inflation play by any means,” Streible told CNBC.
“Supply-demand issues are here, there are new fundamentals and it’s got momentum shooting it higher.”
Despite the day’s pullback, Streible expects silver to climb to “at least $60” an ounce.
“If you look at it from an inflation standpoint, look at gold year-to-date: it’s up 6.3 percent,” he explained. “The S&P’s also up while the dollar is down 6.3 percent, so [silver’s] not working with that inflation—otherwise, silver would also only be up that much.”
“We’re up 50 something percent and the reason is new fundamentals—it’s a supply deficit that’s going on in the market.”
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Scorecard—What He Said:
- Streible's Previous Appearance on CNBC (Apr. 20, 2011)
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More Market Intelligence:
- Barrick's Equinox Bid a Warning to Gold Bugs?
- Silver, The New Safe-Haven Currency?
- Commodity Pro: Play Silver with These 3 Miners
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CNBC Slideshows:
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CNBC Data Pages:
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Tuesday's Top Dow Gainers (as of this writing):
Caterpillar
3M
Microsoft
General Electric*
Cisco
* General Electric maintains a minority ownership in NBCUniversal, the corporate parent of CNBC.
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Disclosures:
No immediate information was available for Streible or his firm.
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