Silver: False Hopes For Higher Prices Abound (+3K Views)

Lorimer Wilson April 12, 2020 2 Comments 3,237 Views

Automatically receive the internet’s most informative articles bi-weekly via our free bi-weekly Market Intelligence Report newsletter (sample here). Register in the top right hand corner of this page.

Someone said recently, “If you love gold then you absolutely have to love silver”. I disagree. [The current weakness in price action in silver, relative to gold]…decisively rejects the unrealistic expectations of many silver investors and analysts.

Unrealistic Expectations

1. Silver is primarily an industrial commodity…[and, as such,] is quite sensitive to slowdowns in economic activity. There have been seven official recessions in the past fifty years. Silver’s price declined between 20-80% in every single one of them (see How Does Silver Perform During (and after) A Recession? You’ll Be VERY Surprised). Why would anyone expect it to be different this time?

2. Those who tell us silver is cheap relative to gold say that silver’s price is likely to rise higher, relative to gold, going forward but…there is no fundamental basis for any [such] expectations regarding price action of silver relative to gold. The fundamentals for each are different. You can read more about the gold-to-silver ratio in my article Gold-Silver Ratio: Debunking the Myth.

Silver Technicals

Not surprisingly, the technical side appears to reinforce the lack of fundamental support for higher silver prices.@A Financial Site For Sore Eyes & Inquisitive Minds

Below is a one year chart of silver prices (SLV – iShares Silver Trust ETF)…

As you can see, SLV has made consistently lower lows over the past seven months. Last month’s plunge of fourteen percent to a new seven-month low came after a similar percentage decline in stocks that was supposed to take silver to new highs – not new lows.

Conclusion

There is nothing fundamental or technical which supports the calls for much higher silver prices so you might want to reconsider your bullish exuberance…

Related Articles From the munKNEE Vault:

1. Silver Could Drop to $7 in Coming Recession! Here’s Why (+3K Views)

Silver is not a safe investment. Just because prices are low now does not mean the bottom is in. Investing in this metal is pure speculation with very little fundamental support. If the U.S economy stays strong silver has little upside and may lose speculation premium when interest rates are cut but if the economy collapses silver prices will crash along with every other commodity.

2. $10 Silver Is Coming! Here’s Why (+2K Views)

I believe that we are on the verge of an epic sell-off in silver that will take the price of gold’s little brother down to the $10 level quickly. I have a strong sense that the price action over coming months will shock many, just as they were shocked by oil over recent months.

3. Bull Run In Silver Could Take It Above $160/ozt – Here’s Why

The silver market is only 1/10th the size of the gold market so it’s prone to crisis-driven upside explosions as money floods into it during periods of high inflation and, today, the stage is set for an explosion in inflation. I expect it to kick off a crisis-driven mania into silver like what happened in 1980 and, adjusted for today’s prices, that means silver soaring above $160 a [troy] ounce.

4. Silver is Now Even More Precious Than Gold! Do You Own Any? (+10K Views)

Silver is now rarer than gold and will be for all of eternity. From this point forth we work from current silver production alone and, from this point forth, demand will outstrip production without exception. Can you imagine what that means for the future price of this, indeed, precious metal? Forget about the popular expression: ‘Got gold?’ The much more important – and potentially more profitable – question to ask these days is, ‘Got silver?

5. This Model Suggests A Silver Price Of $40 to $60 In 5 Years (+3K Views)

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.

6. Silver Prices: How High Will They Go? $100? $300? $500? (+57K Views)

Silver prices have risen exponentially for the past 90 years as the dollar has been consistently devalued. Expect continued silver price rises.

7. Silver Will Soon Move Suddenly & Shockingly Higher – Here’s Why (+15K Views)

I am convinced that silver will soon explode in price in a manner of unprecedented proportions, both in terms of previous silver rallies and relative to all other commodities. By unprecedented, I mean that the price of silver will move suddenly and shockingly higher in a manner never witnessed previously, including the great price run ups in 1980 and 2011. The highest prior price level of $50 will quickly be exceeded.

8. The Case For $5,000 Silver – Yes, $5,000 Silver (+8K Views)

If the price of silver were based directly on the real physical silver market, silver’s price should be at $5,000 an ounce. I’m not saying the price of silver will reach $5,000 an ounce; I’m just saying that the actual PHYSICAL silver spot price is not only extremely undervalued, but that it is an illusion compared to the real value of an ounce of physical silver, since it is totally disconnected from reality. [Let me explain further.]

9. Silver Prices Are Way Too Low Any Way You Look At It

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.

10. The Case For $25 Silver – Possibly $68 Silver – Or Even $90 Silver – In the Next Few Years

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

11. Silver Could Hit $150 A Troy Ounce – Here’s Why (+4K Views)

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.

12. UPDATE – Gold:Silver Ratio Suggests Much Higher Future Price for Silver (+26K Views)

Silver is currently greatly undervalued relative to its average long-term historical relationship with gold and, as such, it is realistic to expect that silver will eventually escalate dramatically in price. How much? This article applies the historical gold:silver ratios to come up with a range of prices based on specific price levels for gold being reached.

13. Buy Silver Instead of Gold! Here’s Why (+10K Views)

We are at the beginning of a major shift out of paper assets into real assets and the more I studied the merits of owning gold and silver the more I realized that silver was the smart decision. Let me explain.

14. Silver Is In A Massive Bull Market – Here’s Why (+2K Views)

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.

15. Silver Is THE Antidote to Bubble Craziness – Here’s Why (+2K Views)

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

16. Silver Will Go to $50 and Then Explode Dramatically Higher! Here’s Why (+4K Views)

There is a massive amount of energy underlying the silver market, and when it is ready to unleash, we will see price/value increases that will stun even the most ardent silver bugs…The real power of this expected move is likely to be released only some time after the price of silver has surpassed the $50/ozt. level. [Let me explain.] Words: 685

17. Silver Will Be the Single Best Investment This Decade – Here’s Why (+5K Views)

The fiat currency experiment will end badly in a currency crisis. The wealthiest people will be those who bought silver today and were smart enough to research and pick the best silver mining stocks.

18. Silver Is A Better Choice Than Gold! Here’s Why (+3K Views)

19. Silver Is A “Must Own” – Here’s Why (+4K Views)

Silver has often rebounded nearly 100% within 12-15 months after bad and long bear markets. History says Silver is ripe for a similar move over the next 12 to 18 months.

20. $500 Silver Seems Absurd But Consider The Possibility (Almost 3K Views)

Crafting such a bold title could become hazardous to my reputation since I am a conservative person. However, before you dust off the straight-jacket and have me committed, please take a few moments and consider the possibility.

21. Don’t Ignore Silver; Its Time has Come! (+4K Views)

Gold and silver generally move in sync with each other and tend to move in the same direction. The relationship is such that there’s even an indicator that measures it – the gold/silver ratio. Many investors use the ratio to spot extremes in the pricing of either precious metal, and to spot trends, whether up or down. The ratio currently sits at approx. 80:1 and suggests that silver has some catching up to do.

22. Now’s the Time To Trade In Your Gold For Silver – Here’s Why (+3K Views)

If you’re a speculator in precious metals, now may be a good time to consider trading in some gold for silver. Here’s why.

23. Greatest Silver Rally Ever Could Be On Its Way (Almost 3K Views)

Significant silver rallies follow after significant Dow rallies end… It is simply a natural reaction to what caused the stock market rally as well as the effects of that rally so, if it happened before, it will certainly occur again. Let me explain further.

24. Start Stacking Silver and You’ll Be Rich In 5 Years! Here’s Why (+3K Views)

The supply of silver went down in 2015 due to lower scrap supply and I believe silver production from mines will not rise significantly in 2016 so supply will be subdued going forward. Demand however will keep going up. [IMO if you start] stacking silver you’ll be rich in exactly 5 years.

25. Believe It Or Not: Silver Is Going To $100/ozt – Here’s Why

Silver appears to be very close to an even bigger move higher that will likely take prices to all-time highs.

26. The Silver Setup Is Stunning – Absolutely Stunning! (+2K Views)

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

27. Anticipating $200-$400 Silver Is Ridiculous – But What If…? (+3K Views)

$200 or $400 silver is outrageous when we think in terms of today’s dollars, euros, and yen but what if.

28. Silver: $100/ozt. Reasonable By 2020 – 2022 Or Sooner (+3K Views)

The global financial system is increasingly unstable and fragile, even more so than in 2008. The important question these days is: How will governments, central banks and financial systems respond to the ongoing crisis? Future prices for silver are dependent upon the answer to that question. I suggest three possible scenarios.

29. Silver Trend Is Inevitable In Its Outcome – Here’s Why (+2K Views)

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.

30. Frustrated By the Comatose Silver Price? Don’t Be. Here’s Why (+2K Views)

Frustrated by the comatose silver price? Tired of it going nowhere and being held down? Well, history has a message for you: This trading behavior is normal. Furthermore, similar scenarios from the past say the next price explosion is on the way.

31. Silver Price Is A Coiled Spring – Continue Accumulating More Silver Investments (+2K Views)

Silver appears to be in the very late stages of its Head-and-Shoulders bottom and, with the price still not far off the Right Shoulder lows, we are at a very good point to continue accumulating silver investments.

32. Can Projections of $100.00/ozt Silver Be Justified?

Once again, people are giving voice to expectations of silver suddenly rocketing much higher – but why? Even after its recent price rebound, silver is 65% cheaper than it was 8 years ago.

33. Silver Could Exceed $500/ozt Over the Next 5 Years – Yes, $500!

If you hold silver today, or if you intend to buy, you are now looking at one of those times in history when an investment is likely to make spectacular gains for an extended period of several years.

34. This Opportunity Is Being Handed to You On A Silver Platter!

Talk about having an opportunity handed to you on a silver platter! Whether it’s buying shares of SLV or purchasing physical bullion, there really isn’t much of a downside at this point. If you haven’t staked your claim, now’s a good time to do it.

Editor’s Note: The original article by Kelsey Williams has been edited ([ ]) and abridged (…) above for the sake of clarity and brevity to ensure a fast and easy. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

Scroll to very bottom of page & add your comments on this article. We want to share what you have to say!

munKNEE.com has joined eResearch.com to provide you with individual company research articles and specific stock recommendations in addition to munKNEE’s more general informative articles on the economy, the markets, and gold, silver and cannabis investing.

Check out eResearch. If you like what you see then…