…If you hold silver today, or if you intend to buy, you are now looking at one of those times in history when an investment is likely to make spectacular gains for an extended period of several years.
This excerpt from the original article by Egon von Greyerz has been edited ([ ]) and abridged (…) for the sake of clarity and brevity.
At some point, probably this year, silver will move up several dollars in a day or two and later tens of dollars but let me warn you…silver is not for widows and orphans. There will be a massive volatility so the gains will also involve regular pains so it is definitively better to buy now before the real move starts. We have already seen a $4 move from the lows at the end of June, but that is nothing compared to what is coming.
It is normally not worthwhile to wait for pullbacks because they might not come or they will come from much higher levels so, although we will see massive volatility in silver, most of the surprises will be on the upside. There will be periods when all technical indicators are screaming overbought but the price will continue to run…
Why I am so certain that silver will move up now? Because with silver now going up faster than gold, the gold:silver ratio is coming down fast and…I expect that ratio to first come down to the 2011 low at 30. This means silver will go up 3x faster than gold (ratio goes from 94 to 30).
If we take an example that gold will reach an intermediate top at say $2,000, and the gold/silver ratio then reaches 30. That would mean a silver price of $66.
If we take our long term forecast for gold which is at least $10,000 in today’s money, and apply the gold/silver historical ratio of 15, we get a silver price of $666 which is quite possible.
GoldChartsRUS has produced a silver chart adjusted for real inflation (Shadow Statistics inflation index) which produces an adjusted silver price of $840 in 1980 instead of the actual peak price of $50. Thus, a price of $666 is certainly possible in the next 5 years.
…In August we have seen strong moves in gold. Gold took off when the Maginot Line was broken at $1,350 back in June…
I have given some potential price projections in this article but they are by no means meant to be sensational since I believe they are very realistic but remember that you are not buying gold or silver for short term price gains and therefore price targets are unimportant.
Physical precious metals are bought for wealth preservation purposes. You buy and own physical gold and silver as insurance against a totally rotten and manipulated financial system which is unlikely to survive in its present form.
If you don’t already own gold and silver, buy now. Don’t be greedy and wait for pullbacks [because], that way, you might miss the boat totally which doesn’t just mean losing a potential investment gain. No, it means that you will be totally unprotected and unprepared for what is going to hit the world in coming years…
In a few years gold and silver will be multiples of where it is now and if you store it in the safest vaults and jurisdictions, you will be able to sleep well at night.