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By Melissa Pistilli-Exclusive to Silver Investing News

After reaching a nine-month high on Friday, the spot price for July silver on the COMEX closed down 8 cents to $14.61 an ounce Tuesday on a rebounding dollar, a slight Wall Street rally and profit-taking. But many industry analysts view this dip as merely a pullback before silver continues its upward climb.

Friday’s high of $14.83 per ounce was silver’s best since last August. According to Anna Coulling of Fxstreet, Friday’s close above $14.45 “suggest[s] that we are now in a position to see a longer term bullish rally in silver prices with very little in the way of resistance on the silver chart until we reach the dizzy heights of $16.40 per ounce which is now clearly in our sights.”

Last week’s uptrend in precious metals prices was a result of increasing fears over a ‘’topping out” in the equities markets.  If this sentiment continues, silver may “breakout to the upside” into the $17 to $18 range, said Chris Vermeulen of GoldAndOilGuy.

Silver’s momentum indicators, as well as moving averages, are “supportive to the upside,” reports Standard Chartered Bank. A break above the $14.62 resistance level may put silver on the fast-track to $15.08 and then $16, said David Barclay, a commodity strategist at the bank. Momentum indicators like the 14-day relative strength index, stochastic oscillator and MACD lines show a “buy” signal, he added.

Over the Memorial long weekend, analysts were warning that overbought signals in the market were threatening a pullback in the silver price and we are witnessing that reversal today. Coulling calls this pullback “temporary” and says it “should provide excellent opportunities to buy into the market for longer term position trading to the upside.”

Many feel that we will continue to see a decline in the equities markets in the short-term, and possibly into the medium as well. Either way, silver offers investors protection as well as the potential to capitalize on a tightening market that some analysts predict is on the verge of a price explosion.

Silver Wheaton Eats Up the Competition

As the prices of silver bullion climb out from the bottom (up 73 per cent from last year’s lows) and surpass base metals gains, the primary silver mining sector is leading the rebound in global mining stocks.

Although not a primary silver miner, Silver Wheaton Corp. [NYSE: SLW] [TSX: SLW] is an excellent way for serious investors to take advantage of the upward trend in silver bullion and stock prices without having to store actual silver, or take on too much of the risks associated with traditional mining stocks.

President and CEO Peter Barnes points out that over the past four years the company has nearly tripled the ounces of silver backing every Silver Wheaton share.

A Canadian-based company, Silver Wheaton has recently emerged as the world’s only pure silver streaming company by acquiring its sole competition, Silverstone Resources Corp. Silver Wheaton has acquired all of the issued and outstanding shares of Silverstone Resources, which will now be a wholly-owned subsidiary of Silver Wheaton.  The agreement gives Silverstone shareholders 0.185 shares of Silver Wheaton for every Silverstone share, a deal valued at $190 million.

Acquiring Silverstone’s assets brings Silver Wheaton’s total reserves and resources to 1.4 billion ounces of silver and 405,000 ounces of gold, said Barnes. The company has also gained three new silver streams from copper mines that are expected to generate a combined 4.5 million ounces of silver equivalent this year and now has a total of 12 silver stream agreements with eight partners.

On Tuesday, shares of Silver Wheaton on the TSX were trading at $10.55, down from a 52-week high of $16.00 and up from a 52-week low of $3.07.

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