When Will Silver Hit $20 Again?

I say sometime this week

Would you guys really sell off your silver if it hit even $50?

$20 every day next week

There is a solid base of experts that state... paper silver contracts, which investors can take physical delivery of when expired, our only covered by 1-3% by physical silver owned by the contract writers... Hence we are going to see a scramble of bullion silver till the end of year silver will be $30/oz in December/January. I predicted to my clients $22 in October and that was in June.

Also higher fuel costs which runs with silver

Just some FYI. This is an article I published on another numismatic dealers web site concerning why silver is rising. I have spent many hours researching for the answer. As we all know, predictions regarding any commodities is speculative, but what I have discovered sure makes a lot of sense to me.
Enjoy and please read.

In the last nine months Silver is up over 44%. which has many collectors wondering as to why and how long will it last.

There has been rumors and speculation that the US Mint is buying massive amounts of silver and this could be the cause. But in reality, we must look around us.

Thanks to a new campaign by the Chinese government, silver is about to take off higher. There is talk it could triple the current price. Why is this, well China used to forbid the Chinese citizens to own all precious metals. This once upon a time ban has since been removed and even Chinese television is promoting the citizens of China to invest in silver.

What does this mean, it means over a BILLION portential investors all hungry for silver (gold is far to expensive for the average worker). Now factor in the fact that the average Chinese citizen saves 30 to 40% of their income. This provides them with the capital to purchase Silver, and in large quantities.

Another factor in the rising value of Silver is solar cell technology, battery manufacturing and medicine (often used as a microbial). These fields are utilizing and consuming more and more silver. This is just another side affect of the governments push for solar power and making more medical equipment available. After all, everything electronic uses silver. Remember what happened to the price of grain when the push for ethanol started!

Another aspect is the silver-gold ratio. Put simply, the ratio means how
many ounces of silver it takes to buy one ounce of gold. Historically, that ratio has been about 15-to-1. Right now, that ratio is hovering around 59-to-1.
For silver to 'correct' by returning to its long term silver/gold ratio of about 15, gold at $1,000 means silver should be priced at $66 already.

Now one must include the amount of above ground refined silver. The total has fallend from 2.2 billion ounces in 1990 to less than 1 billion today. Now as usual as that supply is falling and demand is rising, guess what, BOOM Silver is exploding.

What does this all mean in the end? Well some commodities investors think Silver could top out at $250/oz. in the next five years as global mine production crawls in the face of increasing consumer and industrial demand. This means that simply put, Silver could see an increase of over 1,150%.
Bear in mind that silver prices have been moving faster than gold. So those who want to invest in Silver should perhaps jump in now while you can.

As to wondering about those 2010 Proof Eagles, well if they do mint them, be prepared to pay a higher price.

NOTE: This blog is in no way meant as an advertisement or as an investment prospective, it is purly based on facts. As in all investments, there are risks.

I for one will continue to buy at pretty much the same rate I've bought at all year. I'm not too worried about selling it off, as its more of a long term hold for me. Now, if something crazy happened and it did hit $50, I'd probably have to revisit that thought.

Copyright
Brian Trumbore

The Hunts

In 1973, the Hunt family of Texas, possibly the richest family in
America at the time, decided to buy precious metals as a hedge against
inflation. Gold could not be held by private citizens at that time, so
the Hunts began to buy silver in enormous quantity.

In 1979 the sons of Patriarch H.L. Hunt, Nelson Bunker and William
Herbert, together with some wealthy Arabs, formed a silver pool. In a
short period of time they had amassed more than 200 million ounces of
silver, equivalent to half the world's deliverable supply.

When the Hunt's had begun accumulating silver back in 1973 the price
was in the $1.95 / ounce range. Early in '79, the price was about $5.
Late '79 / early '80 the price was in the $50's, peaking at $54.

carmykle
Did a poll of when will silver hit $22

Hey Sgtbigred, that 59 to 1 factoid is startling. Back when the Hunt brothers caused a run and the price to hit 50, it was an anomaly. It is three fifths of the way there now, and under normal market circumstances, whatever that means. If the Chinese do decide to hoard everything on the planet, the US is... um... skewered, to spell it differently. Even though silver is 20 an ounce, you can still get an unc ASE for five bucks over melt, which is just pure plain crazy for sellers to sell that low. Silver may be 30 by Christmas, who knows, but I agree buying lots now is a good thing. We are almost at that magic 22 buck 59% ratio now, so that's an undervalued purchase at 25 bucks. One day lots of our grandkids gonna like us alot.