|
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.
Now, those are
the prices that experience and the charts predict. My gut and the fundamentals of the
math tells me a bit more. This is a manipulated market, and the
math shows that the manipulation is failing, but still in place. I expect there to be an epic battle at
around $50/oz., that might last 6 months to two
years, because they won't want headlines that say "silver moves to an all time high".
That's bad for business, the business of printing fraudulent paper
money.
Also, since it
is a manipulated market, they try to create prices and short term trends that
are unexpected and discouraging.
They will paint the tape with any price that puts a damper, or
discourages, physical silver buying.
If higher silver prices will scare off physical silver buyers, then
higher it will go. If lower
prices will do the trick, then lower it will go. Physical silver buyers are creating
this market, but in a counter-intuitive way.
I'd thus expect
to see large and sudden price jumps, both up and down, in order to create the
illusion of instability of silver.
Volatile silver prices are also a function of the tiny silver market. But they are also a function of the
instability of the dollar. The
sudden price changes of 10% in one day that we used to see only in silver
stocks are now seen regularly in major stocks valued in the hundreds of
billions on the major exchanges!
Conversely,
stable silver prices also discourage physical silver buyers, because
investors at this stage of the market are trend investors. If there is no clear trend up, people
today tend to lose interest and forget about the fundamentals, or they
foolishly think that the manipulations can continue forever. Not so. The fundamentals are so out of
balance, I'm surprised that prices remain this low. My problem is that I over estimate the intelligence of the general public.
I feel that we
have hit a bottom in silver prices for several reasons.
First, it's
time. Low interest in silver, and
moderate price changes, can't last forever.
Second, we
recently ran out of 90% junk silver, both in our shop, and at the wholesale
supplier level. This indicates
renewed investor interest.
Third, if they
push silver any lower, they will create extraordinarily fantastic gains for
the next group of value investors who jump into silver, which will also
create extraordinary losses for the bankers who manipulate prices, and the
bankers, such as JP Morgan, are hurting badly as it is from the housing
crisis, and Euro crisis, and "hedge book" problems.
If I were the
one manipulating prices, I'd let silver jump up to about $49 nearly
overnight, and then try to slowly grind prices downward for the next year or
so, back to about $35, if I could do it.
That would be the way to create the greatest kind of discouragement
among silver investors, because it would create a short term downward
trend. Then, let silver explode
again super fast, over some fake semi-positive
silver news announcement, almost like a vertical line up, to nearly $75, and
then do the slow grind down again.
These are the kind of counter intuitive moves I'd expect in a
manipulated market, designed to keep physical silver investors away from the
major trend.
But enough about
short term price predictions.
Another point to keep in mind is that in the last bull market, in the
1970's, gold prices stagnated below $200 for 4 years. So silver may be a great investment
for fast major gains, but you also need to be patient. Sometimes, it takes a while for others
to see what is obvious to us.
Buy silver from
us at www.jhmint.com. We will
deliver!
Do you want to
know which is the most popular form of silver to buy?
Take a look at
our sales data over the last year and a half!
http://jhmint.com/reports.html
Now is a great
time to buy silver and gold. We
through the JH MINT, www.jhmint.com can handle your orders.
I strongly
advise you to take possession of real gold and silver, at anywhere near
today's prices, while you still can. The fundamentals indicate rising
prices for decades to come, and a major price spike can happen at any time.
JH MINT &
Coin Shop
13241 Grass
Valley Ave
Grass Valley,
CA 95945
(530) 273-8175
www.jhmint.com
Minimum
telephone order $5000 for free shipping, USA shipping only.
Open 10AM to
5PM Pacific Time, Monday to Friday, closed weekends and bank holidays. (Also Closed from Dec. 25th to Jan
1st)
Kerri handles
internet phone orders:
kerri@jhmint.com
(530) 273-8822
NEW Location in
Auburn, CA!
JH MINT Silver
& Gold
1760 Highway 49
A140
Auburn, CA
95603
(530) 889-1086
www.jhmint.com
You can also
buy silver from my mom at www.momssilvershop.com
Mom will ship
overseas, even large orders up to $300,000 or larger, and also in lots of
more or less than 100 ounces.
3510 Auburn
Blvd #12
Sacramento, CA
95821
Sincerely,
|
