My experience and the charts tell me that silver prices are likely to head to $75 to $125/oz. in the next one to two years. That’s about a 150% to 230% gain for those who buy silver under $30/oz.
The reason why is that we are in a bull market for silver, where silver prices will likely continue to increase until and unless something major changes. There are many fundamental things driving this bull market in silver, such as:
1. Runaway government spending that is devaluing the dollar due to socialism.
2. Instability in paper currencies around the world due to socialism.
3. Central banks buying gold to protect their national currencies and to protect the value of their foreign exchange reserves which are all going down, due to failed socialism.
4. The tiny size of the silver market, under $3 billion/year worth of investment demand.
5. The unknown and unpublicized supply and demand figures in the silver market (point 4) and unpublicized ten year bull market in silver.
6. The huge short positions in the silver market, up to $200 billion worth of paper silver sold to silver investors who are too lazy to take delivery, and continue to trust the untrustworthy banks who don’t have the silver that they sold to clients.
Until and unless all of those things change, silver prices will continue to go up, as they have for the past ten years. Silver prices will thus continue to increase for probably the next ten years also, at about the same rates, or even faster than they already have.
The prior peaks for silver have been reached every 2 years or so. Each peak price, from $8 to $13 to $20, has been about 50% greater than the last peak, except for the most recent peak of $50/oz., which was 150% higher than $20, and took 3 years after the prior peak. The last peak was nearly $50/oz. around April, 2011. The next peak is thus due in about 1-2 years, and could be from $75 to $125/oz., or higher, as bull markets tend to move up in a parabolic way, moving up in ever faster rates, as silver is already doing.
Prices move up in a parabolic way, probably because people, I mean investors, like to jump on the trend. In fact, American investors are mostly trend investors, not value investors. (If most were value investors, silver would not remain the undiscovered low value that it is!) The issue with silver is that the silver market is so tiny, that by the time even 1% of the public jumps on the trend to buy silver, the silver price will be $500/oz. How so? Because the world is nearly out of silver, and consumes nearly all that is mined each year, leaving so little left over for investors. Also, there is so much money in the banks that if even 1% of the money in American banks tried to buy silver, which is $180 billion of buying power, that if that money tried to buy about 350 million oz. of silver available (about half of annual mine supply), that would drive the price to $500, as follows: $180,000 million / 350 million = $514/oz.
Now that silver has put in a ten year positive price trend, the silver market will be increasingly difficult for the financial world to ignore. Silver will inexorably, inevitably pull paper money into itself like a magnet, destroying the false and fraudulent value of paper money.
See, the problem with all frauds, is that they tend to end rather suddenly.
We are at the point where if 1% of paper money buys silver, it will destroy 94% of the value of the remaining money that was too foolish to buy silver at prices under $30/oz. The math is as follows: $30 to $514 is a gain of 17 times greater. When money loses that much purchasing power, the other way to say it is that the remaining money that now must buy silver at over $500/oz. to protect itself from total destruction, rather than $30 which is the price it could have bought it, represents a loss of 94% of the value of the dollar.
There is no way to stop this process. It has repeated itself again and again throughout all of history.
See, the problem with socialism is that you eventually run out of other people’s money to steal to prop up the welfare state that tries to give handouts to the insatiably greedy and lazy people. We have long passed that point, as the government now collects $2 trillion to fund a $3.5 trillion budget, spending (and printing/borrowing) an additional $1.5 trillion per year. That’s $1500 billion.
And I was just talking about the dangers to the dollar, and the rise in silver to $514/oz. if only $180 billion tried to buy silver. See the problem? The solution is simple. Buy silver before the next guy does!
See, the math shows that there is no possible way that the brokerage houses have bought and are holding people’s silver for them. If they did, the silver price would be $500/oz. already. And it’s not. Being defrauded is simply one penalty for being bad at math. That’s life. Sorry. I didn’t make up the rules. Don’t shoot this messenger.