…The silver market is tiny – roughly one-tenth the size of the gold market – so it’s prone to crisis-driven upside explosions as money floods into it during periods of high inflation and today, the stage is set for an explosion in inflation. I expect it to kick off a crisis-driven mania into silver like what happened in 1980 [and] adjusted for today’s prices, that means silver soaring above $160 a [troy] ounce… almost 10 times the current price…[This article] looks at why silver could be on the verge of a big rally…
…Analysts expect the deficit to hit $1.5 trillion in 2019 and that figure assumes there’s no economic recession. If there’s even a mild recession, a $2 trillion deficit is a real possibility. (A recession would reduce tax revenue and drive the deficit higher.)
…Trillion-dollar deficits are the new normal and that means an avalanche of new government debt to finance them…[which will] make the federal debt grow faster and faster. (Even the government predicts that within 10 years, it will hit nearly $35 trillion, up from $22 trillion today.)
- Who will buy all this paper? The only entity with the appetite will be the Federal Reserve.
- How will the Federal Reserve pay for the U.S. government debt securities it buys? The only way it can: by creating new currency out of thin air and this will debase the dollar and lead to runaway inflation.
Once the dollar starts to lose its value in earnest – which I expect could be sometime before the 2020 election – people will panic into precious metals just like they did in the ’70s and ’80s, but likely on a much bigger scale today, and much of that money will make its way into the tiny silver market. This will cause the price to spike. It’s a predictable pattern. Bottom line, the stars are aligned for a silver price spike for the record books and now is the perfect time to get in…
The current bear market in silver has been running for more than eight years. It’s the longest bear market in living memory and one of the deepest ones…down by about 65% from its peak in 2011.
Silver is overdue for a bull market and as silver prices head higher, select silver mining stocks could offer some of the best crisis investing returns in the months and years ahead.