FunnyMoney
10th May 2011, 12:15 AM
It took 3 different attempts through 20 before silver finally broke into adulthood. A mid-life crisis is to be expected as silver rushes toward after-life status.
On the next pass through 50, which I believe will come sooner rather than later, silver will stay under the radar as 50 nears. Silver, a bargain now and at 50 both, and eyeing the long historic 16 to 1 ratio (16 ounces of silver for a single ounce of gold) now goes into cruise control and long before the end of May gold will find solid support above the 15 hundred dollars per ounce range. All this will continue to make no more than a footnote of interest around mainstream media sources, silver's heading now lined up for 3 digits.
Silver will be more than 5 times the price it breifly touched on the last economic meltdown drivin commodities sell-off of 2008. Silver will go to 55 and continue to cruise on and it's very unlikely the rear-view mirror will be used again, at least any time soon. Technical charts show the next pit stop, or rather manipulation "down boy" ploy, of any concern to be just shy of 3 digits. That itself won't last as the widely used industrial and monetary metal has a fair valuation well beyond.
As gold production continues to face long term declines, a countdown for silver has begun. Mining analysts are having trouble finding much in the way of long term production stability with silver. Silver is set to run relatively dry in terms of new supplies being able to meet demand in about a dozen years, maybe less according to many. Commodities investors have realized that in terms of geological time that this is indeed not too long to wait.
The price of silver won't wait for the news. A one ounce silver coin still costs less than it does to fill the average worker's car with petrol but as energy costs rise, silver will likely exceed the upward pace of energy. On the demand side, even if the economy were to take another tumble as it did in '08, the demand for silver is set to increase year over year given the alternative energy industry's plans now in place globally and especially in Asia. It has become clear that prior to the end of this decade the raw demand for silver will top one billion ounces per year. The mining supply of silver will struggle to provide even 80% of that over the next few years. But by decade end mining supplies will begin to see very sharp declines.
The run on silver has begun and only huge increases in price will now put future demand and supply in balance. Hoarding of silver by industry, investment houses and individuals is also going to pick up. Those paying attention to silver prices have seen the price warning on full display over the last year. This on top of big gains since the start of last decade will now scare the users of silver into hoarding mode. This hoarding will further push prices up. This in turn will continue to spark more investment interest to buy when prices take a dip. But prices based in fiat currency will only be of secondary concern as our current decade comes to a close.
It will be purchasing power that will becomes the primary concern with silver. Silver, for thousands of years the most recognized, and vastly desired form of money, will once again fill that role - it's just that there's going to be a lot less of it by the time it does, leaving what's left much more powerful, let's just call it very powerful purchasing power.
Very powerful purchasing power is a requirement in today's artificial boom and bust global economy. Something has to be a storage of real wealth and large food stocks and gallons of gasoline are not easy vehicles for the very rich investors of the world and out of the question for the average saver. Real estate comes with a lot of regulations and in a global economy trying to level itself will continue to prove a difficult business and an even more difficult investment. Silver, gold and platinum are what fits the bill, they have all the factors behind them and more than willing and able to be the storage of wealth that drives the future definition of "purchasing power". Precious metals will power the future purchasing of the world.
Those holding a lot of silver and gold will find themselves in the driver's seat as the world looks for a safe and reliable way to price things and sucks up precious metals. The cat is out of the bag, 5000 years of history have not vanished. This fiat time is no different and no global currency or basket of them will change the deal. Tricks and illusions don't work once wealthy investors and industry users of real metals get scared. The first shots in the economy and in the price of gold and silver have been fired. Things are already scary. For those not looking to silver and not buying physical metal, it's going to get much, much scarier - and it will keep getting so until they finally do.
On the next pass through 50, which I believe will come sooner rather than later, silver will stay under the radar as 50 nears. Silver, a bargain now and at 50 both, and eyeing the long historic 16 to 1 ratio (16 ounces of silver for a single ounce of gold) now goes into cruise control and long before the end of May gold will find solid support above the 15 hundred dollars per ounce range. All this will continue to make no more than a footnote of interest around mainstream media sources, silver's heading now lined up for 3 digits.
Silver will be more than 5 times the price it breifly touched on the last economic meltdown drivin commodities sell-off of 2008. Silver will go to 55 and continue to cruise on and it's very unlikely the rear-view mirror will be used again, at least any time soon. Technical charts show the next pit stop, or rather manipulation "down boy" ploy, of any concern to be just shy of 3 digits. That itself won't last as the widely used industrial and monetary metal has a fair valuation well beyond.
As gold production continues to face long term declines, a countdown for silver has begun. Mining analysts are having trouble finding much in the way of long term production stability with silver. Silver is set to run relatively dry in terms of new supplies being able to meet demand in about a dozen years, maybe less according to many. Commodities investors have realized that in terms of geological time that this is indeed not too long to wait.
The price of silver won't wait for the news. A one ounce silver coin still costs less than it does to fill the average worker's car with petrol but as energy costs rise, silver will likely exceed the upward pace of energy. On the demand side, even if the economy were to take another tumble as it did in '08, the demand for silver is set to increase year over year given the alternative energy industry's plans now in place globally and especially in Asia. It has become clear that prior to the end of this decade the raw demand for silver will top one billion ounces per year. The mining supply of silver will struggle to provide even 80% of that over the next few years. But by decade end mining supplies will begin to see very sharp declines.
The run on silver has begun and only huge increases in price will now put future demand and supply in balance. Hoarding of silver by industry, investment houses and individuals is also going to pick up. Those paying attention to silver prices have seen the price warning on full display over the last year. This on top of big gains since the start of last decade will now scare the users of silver into hoarding mode. This hoarding will further push prices up. This in turn will continue to spark more investment interest to buy when prices take a dip. But prices based in fiat currency will only be of secondary concern as our current decade comes to a close.
It will be purchasing power that will becomes the primary concern with silver. Silver, for thousands of years the most recognized, and vastly desired form of money, will once again fill that role - it's just that there's going to be a lot less of it by the time it does, leaving what's left much more powerful, let's just call it very powerful purchasing power.
Very powerful purchasing power is a requirement in today's artificial boom and bust global economy. Something has to be a storage of real wealth and large food stocks and gallons of gasoline are not easy vehicles for the very rich investors of the world and out of the question for the average saver. Real estate comes with a lot of regulations and in a global economy trying to level itself will continue to prove a difficult business and an even more difficult investment. Silver, gold and platinum are what fits the bill, they have all the factors behind them and more than willing and able to be the storage of wealth that drives the future definition of "purchasing power". Precious metals will power the future purchasing of the world.
Those holding a lot of silver and gold will find themselves in the driver's seat as the world looks for a safe and reliable way to price things and sucks up precious metals. The cat is out of the bag, 5000 years of history have not vanished. This fiat time is no different and no global currency or basket of them will change the deal. Tricks and illusions don't work once wealthy investors and industry users of real metals get scared. The first shots in the economy and in the price of gold and silver have been fired. Things are already scary. For those not looking to silver and not buying physical metal, it's going to get much, much scarier - and it will keep getting so until they finally do.