Silver

This article looks at the severity, duration, and recoveries of physical gold and silver in three periods that seem to most resemble what’s happening today: the Great Recession, the 1970s, and the Great Depression to see what we can learn.

Automatically receive the internet’s most informative articles bi-weekly via our free bi-weekly Market Intelligence Report newsletter (sample here). Register in the top right hand corner of this page. …Today’s infographic is Part Two of the Silver Series (see Part One here), and it comes to us from Endeavour Silver, outlining some of the key supply and demand indicators that precede a …

Someone said recently, “If you love gold then you absolutely have to love silver”. I disagree. The current weakness in price action in silver, relative to gold decisively rejects the unrealistic expectations of many silver investors and analysts.

Automatically receive the internet’s most informative articles bi-weekly via our free bi-weekly Market Intelligence Report newsletter (sample here). Register in the top right hand corner of this page. …Those who prefer silver always seem to think the ratio of gold to silver is going to reverse “soon” – and it might; maybe significantly so, too – but there are no fundamental …

The silver market is only 1/10th 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.

Silver is now rarer than gold and will be for all of eternity. From this point forth we work from current silver production alone and, from this point forth, demand will outstrip production without exception. Can you imagine what that means for the future price of this, indeed, precious metal? Forget about the popular expression: 'Got gold?' The much more important - and potentially more profitable - question to ask these days is, 'Got silver?

If, and indeed when, the U.S economy goes into recession commodity prices will fall to levels we would have previously found unimaginable. This could be $20 oil and $7 Silver.

Today’s infographic outlines some key indicators that precede a coming gold-silver cycle in which exposure to hard assets may help to protect wealth.

What should prices be for silver in 5 years? Check out my model. Its correlation since 1971 is 0.91 with an R-Squared value of 0.83.

Silver prices have risen exponentially for the past 90 years as the dollar has been consistently devalued. Expect continued silver price rises.