Are such low silver prices ever possible again? Technically, yes.
Unless one was fortunate to have acquired the bulk of their physical silver allocation circa 2005 at an FRN price of under $6.00 per ounce, silver’s fall from grace since its 2011 peak has been nothing short of a hellish nightmare for most.
The current bear market in precious metals has had no mercy for those too anxious in backing up their trucks to load up on these highly valued and much sought after monetary components.
NEWSFLASH: Gold & Silver (REAL-MONEY) remains ON-SALE! [Read more...]
Are such low silver prices ever possible again? Technically, yes.
In this interview with Peter Spina, Eric Sprott discusses the unprecedented silver consumption by India for investment purposes as the Indian gov’t cracks down on gold imports, and how India’s 4,000 ton increase in silver demand this year alone is likely to affect the silver market going forward.
Eric views the current price action in silver as extremely counter-intuitive considering the physical supply and demand fundamentals, and states that to see the price of silver go down in this environment (as India consumes an ADDITIONAL 30% of global investment silver supply) just blows me away!
Sprott concludes: These trends simply can’t continue. You can’t have India suddenly consuming 15% of the global market, people in the US buying an all-time record amount of silver, and put the same amount of money into silver as gold, those things cannot continue to happen and the price of silver stay down.
Eric Sprott’s full MUST LISTEN interview on silver is below: [Read more...]
The big “V” correction in the precious metals back in 2008-2009 did not persuade investors from buying gold and silver at severe lows. Matter-a-fact, it actually motivated huge retail buying of physical bullion.
This time around the monetary authorities got smarter. They engaged a new “SLASH & BURN” tactic by bleeding the gold and silver investors dry by slowly crushing the price of gold and silver over a two-year period. To complete their masterpiece, they initiated two huge take-downs in April & June to make sure even the most hardcore precious metal investors would question their holdings.
The price of silver will hit new highs as an explosion of investment demand will overwhelm supply in the future. This once in a lifetime event will occur not because of bullish rhetoric, technical analysis or brokerage recommendations, but because the fundamentals will finally kick in a major way. [Read more...]
We don’t foresee declining gold and silver prices unless we fall into a deflationary collapse. The Fed has made it clear – no deflation! The US congress and the President have made it clear; they want to spend, spend, spend! Accidents do happen, but “Don’t Fight The Fed.” Expect money printing, inflation, increased debt, and higher prices in gold and silver.
From the past 12 years of silver cycles, expect a high, crash low, launch low, and breakout, to repeat until the global monetary system fundamentally changes from un-backed debt based paper money and returns to some form of a gold backed currency.
Rick Rule: “Eric Sprott…is as aggressive as I have seen him since the year 2000…he is as is his style, the style that has made him a billionaire, very aggressively going into the marginal junior producers…companies that barely make money at $1400, but would be making $800 or $900 an ounce if the gold price went higher….
Eric believes that gold within 12 months will certainly be above $2000…[and] that this is the year where his portfolio will see ten to fifteen–10 to 20 baggers.” [Read more...]
Silver Bullet Silver Shield’s Chris Duane has released an update on silver and his short term and long term view for the metal in the wake of 2013′s mauling.
Duane states that after silver sold off to $18 in early July, the great silver bull market is finally back, and predicts a massive rally in the next 6 months, with silver doubling by Spring of 2014!
Duane’s full update on the Return of the Silver Bull is below: [Read more...]
The past two years have not been kind to holders of the precious metals. The price of gold is down over $500/oz since the record high (nominal) price it hit in August of 2011. That’s a decline of 28%. Silver has seen a decline of 56% over the same period.
There’s no way to sugarcoat the dismal performance of the precious metals in recent months. But a revisitation of the reasons for owning them reveals no cracks in the underlying thesis for doing so.
In fact, there are a number of new compelling developments arguing that the long heartbreak for gold and silver holders will soon be over.
Trying times like these are designed to wear you down and force weaker hands to capitulate before reversing.
We remain steadfast in our conviction that the precious metals investment thesis remains healthily intact, and that the real price action in the gold and silver story has yet to be seen. We see increasing evidence indicating that the next big upward reversal is near at hand. [Read more...]
In his latest interview, Silver-Investor.com’s David Morgan discusses his outlook on silver going forward, and why he believes the bull market is NOT over for the precious metals, and why the best move is ahead! [Read more...]
SD reader Dave writes:
I Purchased $20,000 in gold and $60,000 in silver two years ago. I was lead to believe they were going way up due to money printing and zero interest rates. So far I am down 30-40%. All the fundamentals are right for higher prices but both metals have gone way down. Can these prices go up without a complete collapse of the dollar? I figure I only have about 10 years left to live. Will I ever get even? The only people touting the metals now are the people that make money on sales.
If silver and gold prices correlate, on average, with the national debt and debt will increase until a crash/implosion/hyperinflation event restructures our economy, then you can bet on much higher silver and gold prices in the future.
Volatility will increase. Gold accelerated into a new high in 2011, and silver almost exceeded its 1980 high that same year. Both markets have been ugly, from a bull’s perspective, since then. Expect future parabolic rallies and vertical drops to become more intense in the next four years.
Expect more frightening and silly statements from Goldman Sachs et al about gold going down to $1,200, while they prepare to book fantastic profits from the rally they will encourage, when the time is right for them. The names differ, the game is the same. It hasn’t changed in hundreds of years.
If you want stress, play the futures market in silver. If you want a long-term investment, buy silver at these low prices and wait for the powers-that-be to devalue the various Dollars, Euros, and Yen that we use. [Read more...]
The Silver Chart Predicting $200 Silver by 2018: Silver’s Parabolic Up-trend Channel Suggests Massive Silver Move is Imminent
Today’s chart of the day examines silver’s 12 year logarithmic parabolic up-trend chart that began in 2001.
Silver is just now approaching it’s parabolic up-trend line for the first time since 2009, and only 2nd time since 2002.
The last time silver touched its parabolic uptrend line the metal rose from 8 to $50 in 3 years. The only other time since 2002 that silver touched it’s vertical up-trend line was in 2003, after which silver went on a tear from $3.50/oz to $21.35/oz over the next 5 years.
Silver is now approaching it’s vertical uptrend line near $32. Should the same percentage gain be repeated as the prior two occurrences, silver would need to rise to over $200/oz by 2016-2018. [Read more...]
Submitted by Morris Hubbartt:
If the implosion of Lehman could only get the dollar to 89.11, is there really any hope for the bulls now? I don’t think there is. I’ve labeled the dollar chart the “Triple Hammer Chart”, because I see 3 powerful chart patterns, and all of them are very bearish for the dollar.
Silver is setting itself up for a nice rally. The set-up is very similar to last fall. At the bottom of the chart, note the bullish breakout of the Aroon indicator. Silver is my favorite asset in the precious metals group, for adding fresh risk capital. The Bollinger bands are tightening, and that is usually followed by an explosive move. [Read more...]
Submitted by Deviant Investor
Question: What do May 2004, January 2005, August 2005, June 2006, October 2008, February 2010, September 2011, December 2011, June 2012, and December 2012 have in common?
Answer: They represented significant price lows in silver, AND those lows were confirmed by the weekly stochastic (14,3,3) indicator and the weekly TDI Trade Signal Line (13,5) as shown in the following chart of silver prices since 2004. Approximately once per year the weekly stochastic and weekly TDI indicators have given a “buy-signal” in the silver market.
The ten year chart of silver prices is plotted on a logarithmic scale and shows a highly volatile exponential increase in prices over that ten year period. Note the higher trend line extends to approximately $100 by the end of 2013. [Read more...]
Submitted by Deviant Investor
Silver has no counter-party risk. It is not someone else’s liability. The same is NOT true for hundreds of paper currencies that have become worthless, usually because the government or central bank printed them to excess to pay the debts of governments that did not control spending.
Since Nixon “closed the gold window” on August 15, 1971 and allowed the dollar to become an unbacked paper currency that could be created in nearly unlimited quantities, the gold to silver ratio has ranged from a high of approximately 100 to a low of approximately 17.
There is room for silver prices to explode higher, narrowing the ratio to perhaps 20 to 1. When gold reaches $3,500 (Jim Sinclair) and subsequently much higher in the next few years, and assuming the ratio drops to approximately 20 to 1, the price of silver could approach $200 per ounce, on its way to a much higher number, depending on the extent of the QE-Infinity “money printing,” panic, hyperinflation, and investor demand. [Read more...]
As I have written in these pages before, I expect silver prices to outperform gold prices in the years ahead. That opinion hasn’t changed.
As gold prices started their flight upwards back in 2002, silver prices followed a similar pattern. Below is a price chart of monthly silver prices since 2001—when gold was trading just below $300.00 an ounce. [Read more...]