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SILVER - $150/oz Possible In Coming Months Due To Tiny Size Of Physical Market

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Silver Up 10.3% YTD - Should Continue To Outperform Gold And Other Assets

- Why Silver is in a Bull Market and How High Could it Go?
- Is Silver About Returns Or A Hedge Against Inflation & Systemic Risk?
Silver: Very Small Global Supply
Silver’s Unique Properties
Silver: Increasing Technological, Industrial and Medical Demand
Silver: Increasing Investment Demand
Silver Undervalued Versus Gold
Conclusion

 
Silver has been one of the top performing markets in recent months. Silver has risen to $21.41/oz and is up more than 10.3% year to date.

It is important to remember that silver rose to a recent nominal closing high $48.41/oz on April 28, 2011. This means that silver is nearly 60% below its record nominal high of just over three years ago.


Silver In U.S. Dollars and 50, 100, 200 Simple DMA - 5 Years (Thomson Reuters)

After more than 3 years of a brutal correction and subsequent consolidation, we believe silver is set to rise above that record nominal high in the coming months. We continue to be bullish on gold, platinum, palladium and particularly silver.

We believe that silver will likely surpass its non inflation adjusted high near $50 per ounce and its real high or inflation adjusted high of some $140 per ounce in the coming years.


2014 Asset Performance Year To Date (Thomson Reuters)

At the start of the year, silver was trading at $19.41/oz and most analysts were calling for further price falls. Sentiment today remains very poor.

Very few market participants and investors know about silver’s outperformance as silver gets little or no media attention. There is a huge focus given to the record highs in U.S. and some other stock markets. Therefore, silver remains the preserve of relatively few contrarian investors and store of wealth buyers.

Silver remains very undervalued on an historical basis (charts below), is undervalued against gold (chart below) and most stock and bond markets which are now at record highs. Yet, we believe silver is in the intermediate stage of a bull market that will rival or surpass that of the 1970s.

Why Silver is in a Bull Market and How High Could it Go?

Up until 2010 and 2011, precious metals had been the best performing asset classes in recent years with gold and silver outperforming equities, property and most asset classes over a 3, 5 and 10 year period.

They then became overvalued in the short term and were subject to sharp sell offs in 2011 and again in 2013. It is important to note that there were similar sell offs in the 1970s bull markets prior to the primary secular trend reasserting itself.

The fundamentals for gold and particularly silver are very bullish. The primary reason for our bullish outlook on silver is due to the following:

i) The continuing and increasing global macroeconomic, systemic, geo-political and monetary risks

ii) Silver's historic role as money and a store of value

iii) The declining and very small supply of silver

iv) Significant industrial demand and perhaps most importantly significant and increasing investment demand.

Favourable supply and demand factors and concerns regarding the emergence of inflation and stagflation as the massive global monetary and fiscal reflation affects the value of fiat currencies all point to higher silver prices in the long term.

In the 1970s silver rose from under $1.50/oz in 1970 to nearly $50/oz in 1980.

Thus, silver rose by more than 33.3 times or by more than 3,200%. Were silver to replicate its performance in the 1970s, it would have to rise by more than 33 times again. The average price of silver in 2001 was $4.37/oz and 33 fold increase would result in silver rising to over $145/oz.

While this price target may seem outlandish to some, it is worth remembering that silver's record high in 1980 adjusted for inflation (according to U.S. government inflation figures) was nearly $130/oz.



Real Silver Price 1720 To Today To Today (CPI Inflation Adjusted)

A picture or a chart truly is worth a thousand words and the chart above showing silver prices adjusted for inflation shows how undervalued silver remains from a historical perspective.

Most assets in the world are now multiples of their price since the year 2000 and 20, 50, 100 years ago. Many markets and assets are at or near record levels. Silver remains well below record levels.

Admittedly, the final phase of the 1970s silver blow off was a speculative bubble as the billionaire Hunt brothers attempted to corner the silver market. In 1979, there were very few billionaires in the world. Today there are hundreds of billionaires, many multi billionaires, thousands of millionaires, hedge funds and many sovereign wealth funds. Small allocations by any of these to silver will see sharp price gains.

Indeed, the silver market is so small that it could very easily be cornered again - as could other precious metal markets. Indeed, this risk does not come just from private investors. There is also the possibility that resource nationalism and currency wars could see states seek to corner important strategic precious metal markets.

Is Silver About Returns Or A Hedge Against Inflation & Systemic Risk?
Silver is a hedge against macroeconomic, systemic, geopolitical and inflationary risk with the attractive added potential for significant capital gains.

Real asset allocation and prudent diversification would be an important reason to have an allocation to silver. Silver is highly correlated to the safe haven of gold and is in effect a leveraged sister of the precious yellow metal. Silver like gold is for wealth preservation purposes but silver has the potential to deliver substantial returns.

Silver: Declining Supply

In 1900 there were 12 billion ounces of silver in the world. By 1990, the internationally respected commodities-research firm CPM Group say that figure had been reduced to around 2.2 billion ounces of silver.

Incredibly today, that figure has fallen to less than 1.39 billion ounces in above ground refined silver (World Silver Survey 2014 P36-43). Thats means that all the refined silver in the world that is available for industrial and investment purposes is worth less than $30 billion. It puts the scale of the Federal Reserve's monthly QE into perspective - from $85 billion to $35 billion today.

It is estimated that between 50% and 90% of all the silver that has ever been mined has been consumed by the global photography, technology, medical, defense and electronic industries.
 


Silver World Demand, 2004-2013 (GFMS via Thomson Reuters)

On current supply and demand trends, the amount of above ground refined silver is projected to shrink to even lower levels in the coming years. Demand has been outstripping mining supply for most of the last 20 years, driving above ground supplies to historically low levels.

Few in the investment world are aware of this important fact.
 

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Silver World Supply,  2004-2013 (GFMS via Thomson Reuters)

Total global silver supply from both production and scrap has only increased marginally in recent years (see chart) despite silver’s price gains. Meanwhile demand has been increasing, particularly investment demand.

This hasn't resulted in significantly higher prices yet because the world has been able to fill the gap from inventories and official government stockpiles.

However, today the U.S. government's stockpile is all but gone, and sales from other official sources, such as China, Russia and India, have ended. The decline in refined silver stocks, from around 2.2 billion ounces in 1990 to around 1.4 billion ounces today means that silver stocks are near an all time low.

The rigging or manipulation of the silver price has likely also contributed to silver’s failure to achieve higher prices.

Very importantly, silver is very unusual as its supply is inelastic.

This means that silver production will not ramp up significantly if the silver price returns to the record nominal highs near $50 per ounce or higher.


Silver - World Supply and Demand (Thomson Reuters)


Supply didn't increase significantly in the 1970s when silver rose more than 35 fold in price - from $1.40/oz in 1971 to a high of nearly $50/oz in 1980.

Importantly, silver is a byproduct metal and some 80% of mined silver is a byproduct of base metals. Higher prices for silver will not cause copper, nickel, zinc, lead or other base metal miners to increase their production.

In the event of a global stagflationary or deflationary slowdown, demand for base metals would likely fall thus further decreasing the supply of mined silver.

There are only a handful of pure silver mines remaining - many with depleting reserves. This inflexible supply means that we cannot expect significant mine supply to depress the price after silver rises in price.

It is extremely rare to find a good, service, commodity or investment that is price inelastic. This is another powerfully bullish aspect unique to silver.

Silver’s Unique Properties
Silver has many unique properties which make it ideal and indeed essential in global industry - especially in the global photography, technology, medical, defense and electronic industries. Yet, silver is a finite resource and the supply of silver is increasing only very incrementally.

Silver, unlike gold, is heavily used in industry and because of gold's much higher value, it gets recycled and all the gold mined in the world ever is still with us but a huge amount of silver has been used in photography, mirrors and other industrial uses in the last 200 years. The low price of silver makes recovery and recycling uneconomic.

Unlike gold, silver is like oil - as it is consumed in these many industrial applications it is gone forever.

Why is this indispensable metal in such demand? The reasons are simple. Silver has a number of unique properties including its strength, excellent malleability and ductility, its unparalleled electrical and thermal conductivity, its sensitivity to and high reflectance of light and the ability to endure extreme temperature ranges.

Silver has the highest electrical conductivity of all metals, even higher than copper. It was used in the electromagnets used for enriching uranium during World War II (mainly because of the wartime shortage of copper). Silver has the highest thermal conductivity and optical reflectivity of all metals. Silver’s unique properties restrict its substitution in most applications. 


Silver: Increasing Technological and Industrial Demand

Industrial applications for silver have always been significant but have increased significantly in recent years.

Silver uses have expanded to include iphones, ipads, cell phones, flat-screen televisions and many other modern high tech devices. It is used in film, mirrors, batteries, medical devices, electrical appliances such as fridges, toasters, washing machines.

Silver is used in solar energy and photovoltaic cells and this is another growth sector for silver industrial demand.

Growing middle classes in China, India and many other countries are now demanding the quality of life and standard of living enjoyed by many in the West.  Technological demand for silver may increase.

Silver: Medical Demand
Silver is known as the 'healthy metal' and has many and increasing medical applications.

In a world that is showing increasing concern about the spread of diseases and pandemics such as various flus, ebola and other viruses, silver is being increasingly tapped for its biocidal properties.

Research is ongoing on the use of silver and its compounds for therapeutic uses and on its potential use as a disinfectant in hospitals and other medical facilities.

Increasingly, silver's antimicrobial and antibacterial qualities are seeing it being used in all sorts of medical applications and this looks set to become a very significant source of demand in the coming years.


Silver: Increasing Investment Demand

Investment demand for silver has risen in recent years as investors concerned about the value and safety of property, equities and deposits allocated funds to the finite commodities and currencies of silver and gold. More recently, there are increasing concerns about the value of paper currencies themselves (voiced by many including Alan Greenspan, John Paulson and George Soros) which is leading to further diversification into hard assets and precious metals.

 


U.S. Mint Silver Eagle

There has been a marked increase in investment demand for silver in recent years.

Last year, there was a shortage and rationing of both American Silver Eagles from the U.S. Mint as well as so called junk silver -90% and 40& silver bullion bags, pre-1965 U.S. dimes, quarters, and half dollars. There is no shortage this year, but robust demand continues from so called ‘silver stackers’. Silver stackers remain the prudent and smart money.

Investors in silver bullion coins and bars are hedging themselves against the monetary risks. They are  protecting themselves against rising inflation, possible currency devaluations and still very prevalent geopolitical and macroeconomic risks.

Silver Undervalued Versus Gold

Silver is undervalued versus gold with the gold silver ratio at 62:1 ($1,330oz/$21.40/oz).

This is particularly the case on a long term historical basis. The long term historical average gold to silver ratio is 15:1 and this is because it is estimated that geologically there are some 15 parts of silver in the ground for every one part of gold.


Gold Silver Ratio, 20 Years (Thomson Reuters)

In 1980 the ratio nearly reached 15 ($850oz/$50oz=17) and the average in the 20th century has been around 40:1.

At silver’s intermediate price peak in April 2011, the gold silver ratio fell to nearly 30 to 1.

We believe that silver's ratio to gold will revert to its mean average in the latter half of the 20th century below 40:1 as it did in 1998 and again in 2011.
 

Conclusion

Silver is unique in terms of being both an industrial metal and an investment and store of value.

Silver is priced at less than $22/oz today. The average nominal price of silver more than 34 year ago, in 1979 and 1980, was $21.80/oz and $16.39/oz respectively.

In today's dollars and adjusted for inflation that would equate to an inflation adjusted average price of some $60/oz and $44/oz in 1979 and 1980.

Given the very strong demand and supply fundamentals, we believe silver will be valued at well over $50/oz in the coming years and should rise above the real high from 1980 at $140/oz.

Silver remains one of the most attractive investment opportunities today and those who own physical coins and bars in an allocated manner, will protect and grow their wealth in the coming years. Avoid digital gold and unsegregated gold where you partially own allocated but unsegregated gold bars.
 

We are now offering a silver price match guarantee and will match prices offered by bullion dealers internationally >> Bullion Coin And Bar Price Match Guarantee

 

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Mon, 07/14/2014 - 12:27 | 4955785 silentboom
silentboom's picture

One thing's for sure, if I sell my silver....that will be the day it goes to 150.

Tue, 07/15/2014 - 20:37 | 4961110 jorel2
jorel2's picture

ok

Mon, 07/14/2014 - 10:49 | 4955399 Comte d'herblay
Comte d'herblay's picture

Of course all things are possible in this world.  Except $150 silver in the next few months, years, or decades.  The Hunt brothers can no longer corner the market. 

it's likely this outlandish statement was made to grab hits, which it has successfully accomplished.

The InterWeb has made it possible to make money by bloggers who knowingly write things that are utterly preposterous. 

Where else can you be so wrong so often, be called every name in the book, be charlatans with no cred and STILL make a living??

Only Federal and State government, Wall Street Jewish mafia chieftains, and retired 5 star generals have it as easy.

Tue, 07/15/2014 - 20:38 | 4961115 jorel2
jorel2's picture

schill

Mon, 07/14/2014 - 08:45 | 4954980 esum
esum's picture

* in 1964 the silver price was $1.64/ounce and a bbl of oil was $3.00

* a kennedy half dollar $0.50 is now worth about $7.00 silver (ecluding the copper)  14x

* $0.50 in the bank at 5% compound interest would be $5.73  11.5x

* a 1964 chevy corvette cost $4200 and is worth (subject condition 40-150k) $42,000 10x  more likely $70k 16x

* dow jones 735  ...  granted differnt components  23x 

* bbl of oil $3.00 ... 100-106  33x

# 1970 exxon $1.79 ....... $101   56x

 

Mon, 07/14/2014 - 08:38 | 4954955 AdmTirpitz
AdmTirpitz's picture

Brought to you by the people who make fiat on selling you silver----BITCHEZZZ!!!

Mon, 07/14/2014 - 08:38 | 4954854 ms8172
ms8172's picture

I've been reading about this shit forever... when is it going to do it then???

Mon, 07/14/2014 - 07:27 | 4954829 mogul rider
mogul rider's picture

used tampax could hit 300 bucks each in the post apocolyptic world.

stack those in your liviing room

 

 

Mon, 07/14/2014 - 07:43 | 4954847 johnnymustardseed
johnnymustardseed's picture

The key word in the headline is "SHOULD"....that would be in a world where the FED and Primary Dealers who knock it down did not exist

Mon, 07/14/2014 - 07:25 | 4954823 mogul rider
mogul rider's picture

silver is for making zombie bullets not for saving

Mon, 07/14/2014 - 07:24 | 4954821 mogul rider
mogul rider's picture

$150 buck silver means you've been eaten by zombies so it won't matter much

Mon, 07/14/2014 - 07:22 | 4954813 mogul rider
mogul rider's picture

right on summer cue

Pumpers pumping the rise to sell to the fish reading this trash.

Don't buy, let them sit on their 49 dollar Silver losses. You will get their silver cheaper when it goes to 13.

Gold and silver are not a hedge agianst anything but are a vehicle for slimeballs to make a fast buck.

Gold and silver peeled off 40% and 60% respectively in losses to the last fish who listened to these hucksters, vermin, and schils.

Do nothig and watch the schills panic.

 

 

Sun, 07/13/2014 - 22:12 | 4954204 screw face
screw face's picture

Voltar says, "keep stacking"!

Sun, 07/13/2014 - 19:01 | 4953626 TVP
TVP's picture

If silver skyrockets to $150 an ounce, we're all fucking DEAD.  

Sun, 07/13/2014 - 19:02 | 4953624 lasvegaspersona
lasvegaspersona's picture

I'll say it again...and don't hate me just because I do not share your beliefs...gold ONLY is the monetary metal of the future.

Show me a single central bank that has any silver and I'll shut up.

If you are a silver stacker at least have a percentage in gold.

One day we will wake up and gold will have a new higher value and silver will drop like a rock to it's industrial price. Silver was rejected as a monetary metal for the last time in 1935 by China. Yes it was used in coins in the US until the Kennedy half dollar but ..no more...wishful thinking will cause silver stackers great grief. The 'ratio' means nothing. Ancient history of prior use means nothing. Silver lost the war and will never again see use in the monetary system.

Mon, 07/14/2014 - 07:41 | 4954845 n8dawg84
n8dawg84's picture

LVP,

I certainly don't hate you for your view. I've read a lot of FOFOA myself, and while I believe gold will be the "new" internationally accepted wealth reserve asset (central banks don't hoard silver, after all), I believe that silver does indeed have a place in this upcoming shift. For example, look at the state of Utah. It has once again made gold AND silver legal tender (I believe the first PM transaction after that was a pocket knife for a siver coin). Many other states within the US are at least exploring this option through legislation. Is it too far fetched to think as more states follow Utah's example of remonitizing gold AND silver that silver will once again be circulated on a local township, county, or state level? Personally, I don't think so at all. In fact, that's exactly how I see it rolling out. Gold as the international currency accepted far and wide by everyone everywhere, silver as a more local currency, the people's money, not suitable for international use.

On the flip side, one could make an argument that partial gold coins could be minted to contain a small enough portion of gold that would be suitable to buy that loaf of bread or whatever would satisfy the local demand. Truthfully, that might be the way things go down. I don't think any of us can say with 100% certainty how things will look when this is all done. I've come to my own conclusions of what's likely and what's not, and my purpose in engaging is to allow someone else the opportunity to make theirs, even if it disagrees with my own

Sun, 07/13/2014 - 23:00 | 4954355 Gold is money -...
Gold is money - and bullets if your out of lead's picture

Your leaving out an EXTREMELY inportant factor. If gold goes up to high levels then how would gold be a viable money to transact in? Are you going to trade a gram? One gram is pretty damned small at is 42$. One tenth of a gram is 4 dollars and that is fucking tiny. Now lets imagine gold doubles, now what...? 

I bet if I asked you to locate a quater you could find a few in no time. Your pocket, on the floor board of your car.

 

Even if no one carries gold, rather the dollar is backed by it, we already have a minting process in place and it would be ALL TO EASY to begin minting the very coins we carry TODAY in 90% silver. I am not saying that will happen only that it could happen with extreme ease. Lets not forget in 1965 you could buy a burger, fries and a milk shake for about .50

Now I don't eat fast food but I am going to guess you could get the same today for the melt value of a silver half dollar. ($7.70 today)

To say with certainty that there would be no place for silver is just plain silly. 

Lastly I am not an expert on this topic but I would have to ask just what would the industrial value of silver be if gold was $5000 an ounce. Less than 30$ I mean the cat is out of the bag at that point and the true value of a dollar has come home to stay. Not to mention the fact that silver is used in solar panels and suddenly the cost of energy is unbearable.

Maybe somebody smarter can do some math on that but I am guessing that even the industrial value alone would make it worth while post global crash. 

Mon, 07/14/2014 - 09:28 | 4955110 dizzzave
dizzzave's picture

So... Post global crash (the sort of world ending financial calamity where people are using gold instead of dollars), how much industrial activity is there really going to be?

Sun, 07/13/2014 - 17:49 | 4953368 BobTheSlob
BobTheSlob's picture

This one is wishful thinking. TPTB will have none of this!

Sun, 07/13/2014 - 15:45 | 4953098 rosiescenario
rosiescenario's picture

"In the 1970s silver rose from under $1.50/oz in 1970 to nearly $50/oz in 1980.

Thus, silver rose by more than 33.3 times or by more than 3,200%. Were silver to replicate its performance in the 1970s, it would have to rise by more than 33 times again. "

 

...& all we need are a couple of rich dumb Texans......preferably brothers, not an absolute necessity....

Sun, 07/13/2014 - 15:04 | 4953004 Jackagain
Jackagain's picture

The only way for silver to make a big leap in price is for the dollar to lose world reserve status. I wonder though what will happen to the price when the Fed decides to raise interest rates?

Sun, 07/13/2014 - 14:30 | 4952898 jomama
jomama's picture

i lol'd.

Sun, 07/13/2014 - 14:04 | 4952812 infiniti
infiniti's picture

"Silver is a hedge against macroeconomic, systemic, geopolitical and inflationary risk with the attractive added potential for significant capital gains."

Clearly silver is not a hedge against inflation, as your chart shows, the inflation-adjusted price has fallen for the better part of 250 years.

Neither silver nor gold show a positive correlation with inflation.

Sun, 07/13/2014 - 17:59 | 4953393 IPA
IPA's picture

Risk of inflation... Cause maybe there won't be inflation? 

Sun, 07/13/2014 - 15:56 | 4953126 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yeah!  Right!

You and I will go on a shopping spree.  I will take a Pre-33 $20 Gold Piece and an old Morgan Silver Dollar and you can take a $20 fiat federal reserve note and four modern day quarters.  Who do you think will have be able to buy more items!?   Geez!

Tuco

Sun, 07/13/2014 - 13:25 | 4952697 therover
therover's picture

My opinion is let silver stay in the 18-21 range for years to come. I buy silver bullion every week and at that price, it's a bargain. Started buying silver for my son when he was born in 1999. Too bad I did not have as much extra scratch back then as I do now !

My philosophy is simple. The silver (and gold) I buy is for him, so he can have a tangible asset in his possession in the future, that I believe will be worth more than it was when bought, and preserve it's purchasing power when currencies shit the bed. It's not an investment per se, and I don't trade it ( I have every gram/ounce I ever purchased as well as every silver coin found via change or metal detecting...a hobby that can find precious metal, jewlery and change that can be converted into silver/gold bullion !).

I tell everyone I know, if you have a few extra bucks at the end of the week, buy an ASE or any other bullion coin from a local dealer ( even if the premium is a bit higher than the bigger guys). Get to know a coil dealer near you. The bullion coins, as well as the 90% silver coins, are really cool pieces of art, they feel good in your hand and WILL preserve purchasing power in the future better than ANY fiat currency...it's PROVEN.

Sun, 07/13/2014 - 18:04 | 4953415 IPA
IPA's picture

My dad would buy my the proof sets every year for Christmas. They are expensive fiat containers. They are all now worth about as much as the coins inside. He was floored when i told him how much some ASEs would be worth had he been getting those instead. 

Sun, 07/13/2014 - 14:59 | 4952993 Jackagain
Jackagain's picture

That and it pisses off the banksters...especially at JPM.

Sun, 07/13/2014 - 13:21 | 4952679 debtor of last ...
debtor of last resort's picture

The pendulum swings

From honest money to fiat

And from paper promises to physical assets

Patience...

Sun, 07/13/2014 - 12:01 | 4952376 alexcojones
alexcojones's picture

From tiny seeds do giant AG trees grow.

If you want to germinate future silver stackers, and teach them about REAL money, and tangible value. give your kids, grandkids, nieces, nephews some AG.

These guys have the right idea.

Silver You Have Given Away
Sun, 07/13/2014 - 11:17 | 4952220 alexcojones
alexcojones's picture

+1 AGStacker

I give my friends and family silver coins with their birth year. Usually a Franklin half since we are almost ALL geezers. The younger ones I give an SAE in an airtite.

BUT, I put the Franklin half in their Brita water pitcher, if they have one. The BU half just sits there at the bottom and people ask WTF is a coin doing in there.

Purifying the water of bacteria I say. When they roll their eyes I just Google "Silver anti-bacteria in Pioneer water barrels," and tell them the rich also used silver spoons for the same purpose.

One step at a time with the littlest lambs and bigger steps for the sheep.

Three of my family are aboard as stackers. My friends, sad to say, are too damn intelligent to stack. They read the WSJ and the NY Times or LA Times.

De-Dollarization will cure them of their Cog Dissonance.

Sun, 07/13/2014 - 11:16 | 4952218 TVP
TVP's picture

Heard it all before, a million times.

 

Gold going to $10,000 an ounce, silver to $150 an ounce or higher.

 

Sounds great, but never seems to materialize.  All the arguments for it seems logical, yet never play out in reality.  

 

33% rise, huh?  I'm out about 33% of my initial investment in silver since I started believing these Ron Paul types.  Fucking con men and controlled resistance, all of them.

 

 BUY GOLD AND SILVER, BURY IT IN THE BACKYARD, AND WATCH IT DECREASE IN VALUE BY 33% MOTHERFUCKERS!! WAHOOO

Tue, 07/15/2014 - 20:40 | 4961124 jorel2
jorel2's picture

patience young padawan.  Rome wasn't destroyed in a day. It took a year.

Mon, 07/14/2014 - 00:29 | 4954546 gearbaby
gearbaby's picture

I bought at $12/oz in 2009 and sold at $43/oz. in 2011. A tidy profit if I do say so myself.

Sun, 07/13/2014 - 12:17 | 4952434 AllWorkedUp
AllWorkedUp's picture

TVP - I'm with ya. Been hearing this kind of stuff for years now. $150 in coming months? Really?? Silver struggles to go up 1% in a day. The paper kings own these markets. Until that changes and the CME with their crony manipulating banks no longer continue to be the pricing mechanism, $150 is a pipe dream.

Articles like this really make me want to puke. Coming months, yeah sure.

Mon, 07/14/2014 - 10:21 | 4955314 AllWorkedUp
AllWorkedUp's picture

Well there ya go. This turned out to be a timely article as the manipulators are whacking the metals for the millionth time for no reason. JPM is not going to lose on their largest short position ever.

IT WILL NOT END UNTIL THE CME STOPS BEING THE PRICING MECHANISM. THE REST OF THE WORLD NEEDS TO ABANDON THE USD AND SHUT DOWN COMEX.

Sun, 07/13/2014 - 11:08 | 4952186 alexcojones
alexcojones's picture

Speaking of silver and the De-Dollarization:

Ron Paul: The Collapse Is Close

Words spoken on the House floor, almost TEN years ago:

"The trade deficit last year was over $728 billion. A $2 trillion war is raging, and plans are being laid to expand the war into Iran and possibly Syria. The only restraining force will be the world's rejection of the dollar."

Sun, 07/13/2014 - 23:28 | 4954426 Gold is money -...
Gold is money - and bullets if your out of lead's picture

You mean almost 10 years as in 2004? Only 4 years from 2008 when there was a financial collapse.

I would say Ron Paul was right. I would think anyone would say that 2008 was in fact a collapse.

You have a short memory.

Sun, 07/13/2014 - 09:44 | 4951973 Seize Mars
Seize Mars's picture

Start any sort of valuation process you want. You end up with silver being worth at least an order of magnitude higher than where it is now.
So, why would I bet against this? Especially when owning silver is a proper "fuck you" to the FED?

Abolish the FED, or the FED will abolish America.

Tue, 07/15/2014 - 20:42 | 4961129 jorel2
jorel2's picture

agreed. At least.  I'm betting the farm on 1000/oz personally.  In less than 5 years.  So put that in your pipe and smoke it all you nay-saying goombahs.

Sun, 07/13/2014 - 10:32 | 4952098 N0TME
N0TME's picture

Amen.

 

(Long time reader, first time poster.) 

Mon, 07/14/2014 - 04:05 | 4954697 messymerry
messymerry's picture

Welcome aboard,,,
;-D

Sun, 07/13/2014 - 08:45 | 4951903 eddiebe
eddiebe's picture

Remember 'Joe the plumber'? Until he gets the fact about FRN's and central bank market manipulation scams there is little hope of $150 silver unless some revolutionary technology necessitates it at that price.

Sun, 07/13/2014 - 08:35 | 4951896 QEternity
QEternity's picture

Buy physical PM only. It's not so much an investment as it is a hedge against the widowmaker fast approaching. Paper Metal is a good way to get stuck holding the fuckin bag when the fraud goes belly up.

Sun, 07/13/2014 - 09:46 | 4951982 Seize Mars
Seize Mars's picture

Correct. Or, as Ann Barnhardt would say, stop trying to trade "the end of the world."

Sun, 07/13/2014 - 07:43 | 4951853 Lanka
Lanka's picture

A parabolic rise in the price of silver will only occur in response to a major devaluation of the FRN.  Until then, it is still being controlled by the PTB.

Sun, 07/13/2014 - 06:38 | 4951818 Jano
Jano's picture

The author seems to believe in a free market.

As we have now that championship in Brazil...

in Europe we have reguralry a scandal in soccer game fixing.

Some players want to eran extra money and help to fix the results. And this is just a soccer game (although the money circling in thisa sport is quite big).

The author should consider it: if they fix a stupid soccer result, then there will be with certainity somebody, who is going to playaeerounf with silver (and all other markets) and for a honest individual it will be always a risk to buy a commodity, or participate in soccer betting..

Sun, 07/13/2014 - 03:09 | 4951723 Rosie-Redknapp
Rosie-Redknapp's picture

At some point my gold and silver stack is going to be worth a lot more than I paid for it in worthless FIAT , I have no intention of selling and add some more each month REGARDLESS of the price. The FIAT price is meaningless it only affects the quantity I can afford at that time.

If I need a confidence boost I can go to KWN at any time !

Maybe Lagarde prediction for the 20th July 2014 is true and maybe it's just hocus pocus ....It matters not I have PM stacks, an enormous store of food and items required to protect my family.

According to this lot (more hocus pocus)
http://atam.org/occult-message-in-speech-by-christine-lagarde-of-imf/
Cygnus is a black swan star shape which is going to get hit with a meteor shower on the 20th July 2014 as well.

Apparently an assignation attempt was made on Hitlers life on July 20th 1944 by Von Stauffenberg ( one of Germany's Elite) so maybe this numerology thing is real .

Basically it does not matter if it's Lagarde and next weekend or another trigger in three years time the dominoes WILL fall over at some point and those who put themselves in a better position to benefit or survive will be the very lucky ones.

This is our war against tyranny and injustice, our forefathers fought other types of wars with other types of metals.

We will win it's just a matter of time ..

Mon, 07/14/2014 - 00:50 | 4954573 Crisismode
Crisismode's picture

 

 

Are you smoking what?

 

Mon, 07/14/2014 - 08:51 | 4954999 Rosie-Redknapp
Rosie-Redknapp's picture

I dont smoke...... however I intend a giving a small stack of  FED dollars,  left over from my holiday,   to a tramp so he can use them as roll up papers. 

 

I suggest you keep yours somewhere warm ...

 

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