Silver & Gold Are Soaring!

As the Reuters story says...

Gold Storms to new 25-yr high, silver surges

Gold surged to a new 25-year high on Monday, buoyed by concerns over Iran's nuclear ambitions and surges in oil prices, while silver powered to its highest since May 1983 on hopes for the first silver exchange-traded fund.

Hedge funds and operators investing in the short term were anxious about shifting their funds into gold and silver for the purpose to diversify and to raise higher returns.

But as the story goes on to say...

many traders were nervous about chasing gold and silver from current levels as they were unsure whether the current upward trend would be maintained even after participants fully return from the Easter holidays.

Meanwhile, Resource Investor is telling people to grab profits off the table in precious metals and the widely respected Bob Hoye has been calling for a sharp correction in silver since the beginning of April.

And speaking from my view, we're still not seeing silver mining stocks confirm the move in silver. Since we can't buy silver itself in my services, we have to go by what the silver stocks do. Right now, I'm waiting for A) an upside breakout in the mining stocks or B) more bottoming/base-building action. I'm itching to buy -- but it has to be the right stock at the right time.

Last week, I recommended that people take half gains on some positions -- they still have plenty on the table if silver stocks suddenly go parabolic. I was thinking we'd get a pullback and a better buying opportunity. We may not get that, or rather, not get it soon.

It's both exhilarating and nerve-wracking for investors. I'm certainly glad I'm not SHORT silver. Man, those silver shorts must be getting squeezed but good. Hopefully they had stops in -- I can't imagine holding a short position in this market otherwise.

So will the music stop and precious metals suddenly correct? Or will things keep running as rising oil prices and the brewing crapstorm over Iran feeds inflation and geo-political fears? Tune in tomorrow, friends.

And remember, if precious metals are too frothy for you, there are other markets and other metals.

Check out my new gold and energy blog at MoneyAndMarkets.com