Silver

...A collapse of the U.S. dollar is inevitable. The U.S. Dollar Index has been bouncing off of four-year lows for the past several weeks but this cannot last much longer with a global trade war and U.S. equity correction looming....The U.S. dollar and fiat currencies are in trouble, hinting that gold and silver prices could again go screaming higher...[as] the two still generally trade inverse to each other and, while gold is perhaps the safest way to hedge against a falling dollar, the most profitable option is silver.

Every time the gold:silver ratio has reached a level of around 82, it has led to extraordinary rallies in the silver market

Today’s infographic outlines some key indicators that precede a coming gold-silver cycle in which exposure to hard assets may help to protect wealth.

What should prices be for silver in 5 years? Check out my model. Its correlation since 1971 is 0.91 with an R-Squared value of 0.83.

The graphs below show that silver prices are too low based on five decades of history and via comparisons to national debt, the S&P 500 Index and gold. Expect silver prices to rise far higher in coming years as the over-leveraged financial system resets and rebalances.

The gold-to-silver ratio indicates whether gold or silver is undervalued or overvalued relative to each other. Many people believe the ratio should be roughly 16:1, since it was the level observed [over the] centuries, but this is nonsensical reasoning. Let me explain.

It's Economics 101. Price works to balance supply and demand. Limited supply causes higher prices; higher prices help curb demand...[and] that equation is playing out right now in the silver market. Mined silver supplies have been drying up over the past few years, while silver prices have climbed 20% in the same time frame...

Silver in early 2018 is inexpensive compared to M3, National Debt, government expenditures, the Dow and gold.

A major new silver bull market looks imminent and is expected to kick off with a dramatic spike.

Supply and demand trends are clearly poised to continue tightening the silver market and when the next crisis hits the silver price will be significantly impacted by this trend. It may not happen this year, but the 20,000-foot view of this market says a crunch is on the way. It’s supply/demand 101.