The general stock market managed to close the previous week well above 2008 highs (S&P 500 Index above 1313.15). Along with pre-market action on Monday this is what we see as final confirmation of the important breakout in stocks that could push the whole precious metals markets higher.

In the latest Premium Update, we wrote the following:

"Summing up, the situation remains tense in the general stock market. S&P Index levels are verifying an important breakout and this will be confirmed or invalidated, most likely by the end of the week.

The implications here are great with particular respect silver. Should the recent rally in stocks pause or end, the implications would be negative upon the precious metals sector on the whole. A continuation of the current general stock market rally would be very positive news for the white metal and all who are investing in it."

The recent rally in the general stock market has greatly contributed to silver's strong performance relative to gold and - based on the fact that stocks have decisively moved above their August 2008 highs - the continuation of the outperformance appears probable also in the days ahead.

Summing up, it seems well justified to move part of your long-term capital back to silver, as high-risk period is over, at least for now. As always, we will keep you updated, should anything change.

Thank you for using the Premium Service.

Sincerely,
Przemyslaw Radomski