Silver - Time to buy?

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Our analysis suggests that under the worst case scenario, the price of silver could decline to US$30 per ounce but even that level is less than 15% below the current price. So, this is the time to re-allocate capital to the silver market but investors should bear in mind the possibility that silver will not climb to a record high anytime soon. Instead, the probability favours a lengthy base formation which will then act as a launch pad for silver’s next rally.

Finally, it is our contention that during the next rally in precious metals, silver will not be the leader. After all, the recent plunge has devastated investor sentiment and it is unlikely that the party goers will show up at the same ball again.

If our assessment is correct, the precious metals sector will experience a rotation, whereby investors and speculators will now turn to gold. Accordingly, we believe that during the next big advance, the yellow metal will provide leadership and appreciate more than silver.

http://www.kitco.com/ind/Saxena/may132011.html