Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
This Invisible Tech Stock Threatens Amazon with 800,000+ Online Stores - 21st Nov 19
Crude Oil Price Begins To Move Lower - 21st Nov 19
Cracks Spread in the Precious Metals Bullion Banks’ Price Management System - 21st Nov 19
Why Record-High Stock Prices Mean You Should Buy More - 20th Nov 19
This Invisible Company Powers Almost the Entire Finance Industry - 20th Nov 19
Zig-Zagging Gold Is Not Necessarily Bearish Gold - 20th Nov 19
Legal Status of Cannabis Seeds in the UK - 20th Nov 19
The Next Gold Rush Could Be About To Happen Here - 20th Nov 19
China's Grand Plan to Take Over the World - 19th Nov 19
Interest Rates Heading Zero or Negative to Prop Up Debt Bubble - 19th Nov 19
Plethora of Potential Financial Crisis Triggers - 19th Nov 19
Trade News Still Relevant? - 19th Nov 19
Comments on Catena Media Q3 Report 2019 - 19th Nov 19
Venezuela’s Hyperinflation Drags On For A Near Record—36 Months - 18th Nov 19
Intellectual Property as the New Guild System - 18th Nov 19
Gold Mining Stocks Q3’ 2019 Fundamentals - 18th Nov 19
The Best Way To Play The Coming Gold Boom - 18th Nov 19
What ECB’s Tiering Means for Gold - 17th Nov 19
DOJ Asked to Examine New Systemic Risk in Gold & Silver Markets - 17th Nov 19
Dow Jones Stock Market Cycle Update and are we there yet? - 17th Nov 19
When the Crude Oil Price Collapses Below $40 What Happens? PART III - 17th Nov 19
If History Repeats, Gold is Headed to $8,000 - 17th Nov 19
All You Need To Know About Cryptocurrency - 17th Nov 19
What happens To The Global Economy If Oil Collapses Below $40 – Part II - 15th Nov 19
America’s Exceptionalism’s Non-intervention Slide to Conquest, Empire - and Socialism - 15th Nov 19
Five Gold Charts to Contemplate as We Prepare for the New Year - 15th Nov 19
Best Gaming CPU Nov 2019 - Budget, Mid and High End PC System Processors - 15th Nov 19
Lend Money Without A Credit Check — Is That Possible? - 15th Nov 19
Gold and Silver Capitulation Time - 14th Nov 19
The Case for a Silver Price Rally - 14th Nov 19
What Happens To The Global Economy If the Oil Price Collapses Below $40 - 14th Nov 19
7 days of Free FX + Crypto Forecasts -- Join in - 14th Nov 19
How to Use Price Cycles and Profit as a Swing Trader – SPX, Bonds, Gold, Nat Gas - 13th Nov 19
Morrisons Throwing Thousands of Bonus More Points at Big Spend Shoppers - JACKPOT! - 13th Nov 19
What to Do NOW in Case of a Future Banking System Breakdown - 13th Nov 19
Why China is likely to remain the ‘world’s factory’ for some time to come - 13th Nov 19
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19

Market Oracle FREE Newsletter

$4 Billion Golden Oppoerunity

How Silver is Like Oil: An Upcoming Explosion

Commodities / Gold and Silver 2011 Jun 16, 2011 - 04:07 PM GMT

By: Dr_Jeff_Lewis

Commodities

As prices at the pump move toward $4 and even $5 per gallon, there is no shortage of people calling for new regulations in finance.  Frequently blamed on “speculators,” high prices at the pump are, as some politicians say, the result of lax laws.


But can it really be speculators that are driving up the price of oil?  Without question, anyone can drive up the price of anything for a very temporary amount of time.  Following the rise, though, one has to wonder why any single oil company wouldn’t come to the market with more oil than they were producing at lower prices. 

Oil vs. Silver

Once past the stagflationary 1970s, oil prices were reasonable all the way up until the 2000s.  Through the 1990s, the American family enjoyed driving their minivans all around town with gasoline no more than $.80 a gallon.

But we have to wonder why those days are gone.  Why won’t gasoline ever come back to $.80 a gallon?  It’s because the cheap oil is gone; the cheap silver is soon to be gone, too.

Throughout recent history, governments have subsidized energy consumption and production.  We consumed too much because it was too cheap, and now that all the easily found oil has been brought to the surface, the only oil remaining is harder to find and more expensive to produce.

We should wonder if the same general trend is not in store for silver.  Having been manipulated in price by large banking interests on the futures markets, silver was far too cheap through the 1990s and even the 2000s.  Now into the second decade of this new millennia—a decade more dependent on electronics than any other in history—we should wonder if this will be the ten years that lead silver to a new boom in line with that of oil’s historical rise.

This is the very obvious problem in subsidizing the use of any finite commodity, directly or indirectly.  Subsidies for oil kept production high, even when it made little sense.  New subsidies for other energy forms are eating away at global food supplies, as producing ethanol is more valuable politically than feeding the many people around the world who starve due to shortage.  Decade-long suppressions on silver prices (luckily, most price suppression happened when we consumed the least of it) will only stand to send silver higher as we consume more of it. 

What the future holds
 
Anyone knows that the future will be more electronic than the past.  And the explosion in computing and personal devices won’t just be in the developed world—no, the low price of components (save for silver) means that all 7 billion of the world’s inhabitants will experience the technological revolution.

The tech revolution couldn’t come at a better time for silver investors.  Just as it is realized how much silver was wasted in the past, we can only look to a future which contains far more above ground silver and far less silver below the surface.

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com

    Copyright © 2011 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules