Silver / Precious Metals: Silver to Trade in the $15 – $18 Range Within the Next 90 Days

JAMES BURBAGE, III, PRESIDENT, LLOYDS ASSET MANAGEMENT PROVIDES MARKET COMMENTARY & FORECASTS SILVER POSITION

West Palm Beach, Florida…According to James Burbage, III, the President of Lloyds Asset Management, a Precious Metals Broker/Dealer with two offices in South Florida, forecasts that silver will trade within the $15 – $18 price range within the next 90 days.

On October 16th, 2008, Mr. Burbage, who is the direct descendant of James Burbage, recognized as the creator/inventor of modern day stage theatre, who worked directly with William Shakespeare, made the following forecast about the-then silver market and price prognostication as distributed through Business Wire on October 16th, 2008:

Burbage sees silver poised to make a run to $16 and possibly as high as $24 by the end of the first quarter ‘09.

With just ten days remaining until the end of the first Q 09″ silver has hit the $14.63 mark, representing a call within an approximate five-percent range of accuracy from his nearly 5-months earlier predication. Here’s what Burbage had to say about his forecast at that time:

“At this point silver is a sleeping giant,” says Burbage, “the market has created one of the biggest buying opportunities ever witnessed by most savvy precious metals investors.” As evidence, Burbage points to July 16th, 2008 when silver was tickling 21-year highs of $19.48 oz. “Now more than ever before in history the time is right to prosper from silver which provides excellent portfolio protection from failing “paper assets. A close look at the past few months explains the retracement of silver to its present approximate $11 position. As the stock market began to tumble due to the collapse of Fannie Mae and Freddie Mac, triggering the frightening and immediate unfathomable bailout of AIG and the closing of the goliath financial services institution, Lehman Brothers as well as a handful of enormous commercial banks around the country, investors were forced to sell off assets to cover margin calls. The sell-off included silver positions, where great stores of cash could be tapped to cover margin calls; with the dumping of silver on the market, the price of silver dropped. Burbage sees silver poised to make a run to $16 and possibly as high as $24 by the end of the first quarter ‘09.

Silver Still a Stellar Investment
Today, Burbage sees the following circumstances playing a role for the strong support of precious metals, gold and silver, as a solid investment and safe haven for investors, both private as well as institutional.

The increase in the price of silver has exceeded our original timeline with a hard push of silver rubbing against a recent historical high of nearly $15 an ounce as well as gold breaking an unprecedented benchmark high. Driving the overall precious metals push are the classic market symptoms that traditionally cause investors to flock to precious metals; they are the failing US economy, a crumbling banking system, increases in unemployment, a falling stock market, general malaise with the U.S. as well as global economy and geopolitical tensions in Korea. These factors are also behind gold’s breach of the $1,000 benchmark, pulling its silver cousin along for the ride.

Other Economic Variables Driving Gold and Silver Prices
The week of March 16th – 20th,the feds action sent the dollar into a free fall on the global currency exchanges. The euro underwent its biggest intra day move against greenback since its inception by almost 5 cents. Metals traders panicked on the sudden renewed implications pushing silver as high as $13.07.

Silver Rebounds
The silver market looks as if it has shaken out all the weak long positions at this point. As of 3/18/09 the am fix in London silver was $12.69 an oz. The market had a volatile day and Intraday silver retraced to $11.88. Then Wall Street got a surprise. The Fed pumped an additional $1.15 trillion into our economic system by agreeing to buy treasuries and mortgage backed securities from our financial institutions totaling more than 1 trillion dollars. On this news, the stock market made a u turn ending the day with a 90-point gain on the Dow Jones. The stock market reacted favorably, believing that the government may finally be getting tough about cleaning up the sloppy U.S. banking system.

A Four Month Look At Silver’s Action in Market
The price of silver has rebounded in less than 4 months From October 28th 2008 when silver was at $8.53, it then rallied to $14.63 on February 20th, 2009. Says Mr. Burbage, “what we’re seeing in the market is the molting of silver taking its last gasp of air before it attempts to make a new high.” Burbage points out that ,”Once the historical amount of terrified investment dollars move from sidelined cash into low yield conservative vehicles, precious metals is the best option for conserving wealth while offering historically proven growth.”

A Quick History Lesson in (Silver) Economics
Since 1964 the U.S. dollar has lost over 75% of its purchasing power. Gold and Silver have not lost any. At it’s low and modest entry point, the precious metal, Silver, has more potential than any other investment product on the planet. Despite the President’s stimulus package, most economists, across the board, are looking for things to get worse before they get better. As the market, and its numerous high-profile metrics continue to deteriorate, we anticipate silver to be trading in the range $15-18 in the next 90 days. Other indicators to support the presumptive rise in silver can be seen in the industrial market and the need for the use of silver by large corporations. As an example, Burbage points to multinational conglomerates such as Kodak and LG electronics that have long positions in silver as a necessity for its use in the production of their commercial consumer products.

About James Burbage III & Lloyds Asset Management
For private investors large and small, as well as institutions, precious metals are, and continue to be the safe haven for investors in turbulent financial and uncertain national and geo-political times. “Nationally and globally speaking, the markets have never been more ripe or primed for investors seeking a safe place for their money that supports a historical track record of steady and significant returns in both the near and long term,” says Mr. Burbage.

James Burbage III, is the direct descendant of the Elizabethan James Burbage who is regarded as the father and inventor of stage theatre. Now, more than 400 years later, James Burbage III continues his family’s legacy as an entrepreneur and visionary. Applying the blessing of his extraordinary lineage with his passion and drive for the financial services, investment and precious metals industry, Mr. Burbage, III has created a firm whose name is synonymous with the highest degree of ethics and professionalism in the precious metals industry. With clients across the country, as well as internationally, Lloyds Asset Management has the experience, financial experts and state-of-the-art technology to provide seasoned counsel for the broad spectrum of investors — from the first-time gold or silver buyer, to the savvy precious metal investor or even institutions.

Editors Note: James Burbage is available for media commentary on the financial markets, offering general market overview, with particular expertise in the Precious Metals arena.