Big Gains for Silver in 2018?

We are finding a lot of support for our thesis that silver and gold will be on the rise in 2018. We firmly believe silver is going to surprise everyone in 2018 and be even more surprising throughout 2019. In order to achieve some of the lofty heights we believe are going to come into view over the next 2-3 years 2018 has to jump up somewhere around 20+%. To the crypto crowd that’s not even worth writing about, but with silver and gold we have something real, that is decentralized and off grid. The only people that know what we have are the people that we want or need to know what we possess.

We find more support, from Business-Standard, for what we have been saying for the past several months.

Investors have started betting big on silver amid hopes of a sharp upswing in its prices in calendar year 2018 (CY18).

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Now, we are finally beginning to see evidence of silver industrial demand picking up with strong global growth. Therefore, strong global growth should lead silver to outperform gold, as it has in the next expansion phase,” said Goldman Sachs in its report released late last week.

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Echoing similar expectations, the Bank of America Merrill Lynch (BofAML) predicted silver price to average $17.41/lb for 2018, up more than 8 per cent from the current price level. BofAML’s Head of Commodity and Derivatives Fransicso Blanch cautioned investors from precious metals for 2018 by saying the real US Federal Reserve interest rates would rise, resulting into renewed strength in the US dollar. While inflation should rebound slightly, the macroeconomic backdrop remains challenging for silver to beat gold in terms of returns.

The Bank of Nova Scotia in its latest report said that momentum indicators are bullish, as silver appears poised to target the November high of $17.38/lb in the near term. Silver has underperformed gold by 8 per cent in CY17. The investment bank has forecast silver price to average $17.2/oz in global markets for 2018, after falling a bit on profit booking in initial months of the current year.

“Silver prices are likely to move up by 17-20 per cent in CY18 due to rising industrial demand. Since global industrial growth is looking to remain extremely positive, we believe the silver consumption to go up this year. This gives us reason to believe that silver prices would move up from here,” said Jayant Manglik, president, Religare Securities.

Globally, silver demand is directly linked with industrial growth due to two-thirds of this metal consumed in industries. Source

Actually, we see much stronger growth than what is predicted above. What I believe is going to happen is silver is going to be above $19. if not even higher. A 20% move higher would put silver north of $20 and that’s truly what we see in the short term with equally strong moves coming between 2019 and 2023 and beyond. Silver is back and will be in demand going forward. If you didn’t load up during 2017 it may be time to pick some up before it begins moving north.