The silver value has soared to the highest silver spot price in three decades. So what is the outlook for silver prices, the preferred profit strategies or favoured profit plays for the rest of the season? Well it depends on which expert you speak to. The silver price per ounce rose above $42.00 in mid-April, a 31 year high. Which is up 32% for the year so far and more than doubled since last September. The question most are asking is where is it going from this point, and exactly how should one position themselves?
The consensus from lots of the market professionals is that the long term outlook for silver is still bullish. But that it is currently over bought along with a pullback possibly even to $30.00 may happen. Most manage to agree that silver will probably run up to a high of $50.00 in the end of the year, the bearish outlook says that it could take 3 to 5 years to get to $50.00.
If you consider the silver gold ratio over recorded history you find so that it is between 16:1 and10:1. At 16:1 and a $1500 current gold price would indicate silver is under valued and really should be trading closer to $92 per ounce. Why aren’t we at that level? Either gold is overpriced or silver is under-priced or even the world has changed. I believe it is the later.
Many of the current investors would like to https://spotsilver.net as being an inflation hedge, but that is really only part of the story. Not merely is silver undervalued versus gold, but silver is really a hedge having an industrial kicker. Silver is used in thousands of industrial processes and is in high demand. Over fifty percent of the silver being produced today gets utilized buy industry. We’ve all seen the ways to use silver continually grow in this particular electronics age. Thirty years ago we had a twenty year supply of silver above ground for industry. Today that supply has dwindled to under a year’s supply.
Something’s wrong here, as well as the only explanation I will see is some type of government or central bank manipulation has been happening for many years. That might be great for silver investors because when corrections do occur, they inevitably over shoot the equilibrium mark by a quite a bit.
There exists another issue driving precious metals prices at this time that numerous are unaware of: silver and gold are in high demand by nation states. This can be a game changer. The CPM Gold Yearbook reports the aggregate total of the quantity of ounces of precious metals bought or sold by nations worldwide. Because the early eighties governments happen to be selling. In 2008 it absolutely was predicted that 5 million ounces will be purchased in 2009. The 2010 CPM Gold Yearbook shows a net buying of 15 million ounces. This rqihjx an indicator that governments worldwide are beginning to distrust the price of the American dollar. Which doesn’t include some countries including Iran and China who don’t report their actions but that are rumoured to get buying large amounts.
Finally, silver coins have become the “common man’s metal”. If you are you are looking to buy precious metals along with your options are between gold at $1500 per ounce and silver at $40 per ounce, many people are choosing the $40 since it is apparently a good deal.
So has the silver chart shown that silver has moved very far too quickly? Some are expecting an important pull back in price before continuing onto test the 1980 record value of $50. Others glance at the 1980’s record price and adjust the price for inflation and discover that the spot silver price needs to attend $130 per ounce to be able to equal that record. So there might be quite a distance to visit yet, without taking into account around the world finances today. I don’t plan on selling any silver bars or silver bullion coins any time soon.