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. In January 1980, the price of silver peaked at $49.45 per [troy] ounce (the equivalent of $163.00/ozt in today's dollars) which represented a 39x increase in little more than 8 years from its low in October 1971 at $1.27. There was talk about higher silver prices, as much as $100.00/ozt and more, yet, only a few months later, silver was down to $10.00/ozt which amounted to a decline of nearly 80% from its peak. At today's price of $17.50/ozt, however, silver needs to increase by almost 500% to reach the $100.00 mark and it needs to be at least $163.00/ozt just to match its January 1980 high. Think about that. Even if it manages to reach the vaunted $100.00 price, silver will still be 40% cheaper than it was 50 years ago. The next time you hear that silver's big day is just around the corner, ask yourself what has changed. Silver's fundamentals are not much different today than they have been for the past half-century and silver's price history doesn't indicate anything that supports or justifies projections of $100.00/ozt and higher. Editor's Note: The above excerpts are from the original article by Kelsey Williams, and have been re-formatted, color highlighted, edited ([ ])* and abridged (…) by Lorimer Wilson, editor of munKNEE.com - Your KEY To Making Money! - for the sake of clarity, and brevity to provide a fast and easy read.Scroll to very bottom of page & add your comments on this article. We want to share what you have to say! *(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.)Related Articles from the munKNEE Vault: 1. NO Fundamental or Technical Factors Support Claim Silver's A Bargain ? A Screaming Buy! Some say that $15/ozt silver is a bargain - "a screaming buy!"- but are there any fundamentals and/or technical factors to support such claims? 2. These Signs Point To the Direction Silver Prices Will Head Today's infographic comes to us from Endeavour Silver, and it outlines some key indicators that precede a coming gold-silver cycle in which exposure to hard assets may help to protect wealth. 3. This Model Suggests A Silver Price Of $40 to $60 In 5 Years 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. 4. Bull Run In Silver Could Take It Above $160/ozt ? 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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. 16. 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. 17. Silver Could Drop to $7 in Coming Recession! Here's Why (+2K 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. 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Here's Why (+4K Views) Spectacular bull markets in silver are not a fantasy and are not anomalies. In the last 35 years, silver has had a perfect record of strong bull markets after a bear market. A 350% gain is what can be expected once silver finds a bottom. Here's why. The post Can Projections of $100.00/ozt Silver Be Justified? appeared first on munKNEE.com. |
