Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Silver: Train Leaving Station Soon! - Gary Christenson

IMG Auteur
 
 
Published : May 19th, 2017
835 words - Reading time : 2 - 3 minutes
( 1 vote, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
[titre article pour referencement]
0
Send
0
comment
Our Newsletter...

Silver prices are rising along the bottom of a 20 year log scale trend channel (shown later). There are no guarantees in a manipulated paper market, such as COMEX silver, but it is possible that silver prices will collapse further, or more likely, move substantially higher, sooner rather than later.

Silver prices COULD fall from their current level of $16 – $17 to under $10. Other events that COULD occur include:

  • You could win the Powerball Lottery.
  • The U.S. congress could balance the budget and reduce debt.
  • The Federal Reserve could apologize for destroying the dollar.
  • President Putin and Hillary could sing “Kumbaya” together.
  • The Middle-East could ascend into a century of peace.
  • And it is possible that silver prices could drop under $10.

But realistically, we know:

  1. The Federal Reserve has devalued the dollar for over a century and is openly advocating for at least 2% inflation – more devaluation. Expect continuing declines in the purchasing power of the dollar.
  2. The U.S. congress, the President, the military, thousands of military contractors, the medical/health/sick care system, and millions of people collecting Social Security do NOT want spending decreased. Expect more spending, deficits, ever-increasing debt, and of course, more consumer price inflation. Silver prices will rise.
  3. Silver prices have risen exponentially for the past 90 years as the dollar has been consistently devalued. Expect continued silver price rises. See log scale graph below.

SILVER TO GOLD RATIO:

Examine the silver to gold ratio for the past 27 years. Low silver to gold ratios indicate long-term buy zones for silver. Silver prices are there now.

How High Will Silver Prices Rise?

The answer depends upon many variables. A partial list includes:

  1. COMEX silver prices are “managed” by large players, including JPM, which previously have wanted silver prices to remain low. That may be changing. Read Ted Butler.
  2. How rapidly will the Fed and commercial banking increase the supply of dollars and how much will they devalue the dollar?
  3. How extreme will our political circus become? Distractions will be necessary. The usual response is war after a suitable scapegoat has been identified.
  4. “False Flag” operations may direct blame and attention away from policy failures and toward some “common enemy.” Wars increase silver prices.
  5. When will U.S. citizens lose confidence in the dollar?
  6. How rapidly will foreign countries including China, Russia and Saudi Arabia redirect commerce away from the dollar?
  7. Hyper-inflation or 1970s style inflation?
  8. Rise of the IMF and Special Drawing Rights as a global currency?

SUMMARY:

Silver prices for the next decade are dependent upon many unknowns. However, a conservative chart interpretation is shown below.

The log trend channel has contained most silver prices for the past 20 years. A “more of the same” financial world suggests silver prices will rise toward $100 in the next 5 – 7 years.

A more aggressive chart interpretation shows prices for silver peaks rising rapidly during the past 17 years.

A blow-off rally in silver – quite possible – suggests silver prices rallying toward $200 – $300 per ounce. For comparison, Bitcoin was $3 a few years ago and recently exceeded $1,700. Amazon stock sold for about a buck 20 years ago. Today it is near $1,000. Silver near $200 is not impossible in a few years.

CONCLUSIONS:

  • Silver prices have risen exponentially for 90 years as the dollar has been devalued. Expect further devaluation and higher silver prices.
  • There are many financial and political catalysts that could propel silver prices well over $100.
  • A conservative graphical interpretation shows $100 silver within a few years.
  • A “blow-off” graphical interpretation shows $200 – $300 silver is possible in a few years.
  • If the powers-that-be create or can’t stop hyper-inflation of the dollar, $500 silver will look inexpensive by the end of next decade.
  • It is difficult to look beyond our “normalcy bias” and consider the possibility that the DOW could drop more than 50%, like it did in the 2008 crisis, or silver could increase in price by over a factor of 30, like it did from 1971 – 1980.
  • Read Steve St. Angelo: Amazing Leverage in Silver Market.
  • Read “Silver and Gold Find Support.”
  • The “silver train” has not left the station … yet.

GE Christenson is the owner and writer for the popular and contrarian investment site Deviant Investor and the author of the book, “Gold Value and Gold Prices 1971 - 2021.” He is a retired accountant and business manager with 30 years of experience studying markets, investing, and trading. He writes about investing, gold, silver, the economy, and central banking. His articles are published on Deviant Investor as well as other popular sites.


The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.

 

Data and Statistics for these countries : China | Russia | Saudi Arabia | All
Gold and Silver Prices for these countries : China | Russia | Saudi Arabia | All
<< Previous article
Rate : Average note :5 (1 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Republicans Craft the Next Great Healthcare Failure
28 JunJ.-1
Peter Schiff's new nick name, The Nail Gun, 'cause he nailed it over and over again. Blam, blam, blam.... Every point, spot on. The last two...
Leaked Police Report: There Are 23 Muslim-Controlled “No Go Zones” ...
25 Junkevthorne1
I do not know how anyone could take an article like this seriously. It is garbage of the worst kind. 'Anonymous sources' 'unidentified leaks' - not...
Bitcoin in Perspective: Bill Gates Worth More, Gold 200 Times More
22 JunDavid C.2
Yes Mish, but bitcoin and the wealth and debt burdens of the world are fully backed by electrons which are very light. Unlike that 68 ft glob of m...
Bitcoin in Perspective: Bill Gates Worth More, Gold 200 Times More
23 JunDynoman0
Valuable potential is what's currently offered by digital currencies. It makes absolute sense to have a global digital economy based upon borderles...
Absent Without Leave
21 JunS W.
Bail ins for sure. It was agreed at the G20 in Brisbane. You are not really a share holder. You are an unsecured creditor to the bank a...
Absent Without Leave
19 JunJ.3
Perhaps all the international shenanigans are the smoke and mirrors intended to obfuscate the view of the looming financial catastrophe. When the ...
Gold Price Cuts Post-UK Election Loss, ETF Investors Sell, Nasdaq D...
16 JunSam Maher
"the SPDR Gold Trust (NYSEArca:GLD) – saw its sharpest liquidation since March in the week-ending Thursday, with shareholders cutting the fund's si...
Things To Come
13 Junkevthorne3
If voting for 'parties' actually made a difference they would have not legalised it. Since 1914, it's been the supply of currency that has governed...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS