Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
Gerald Celente: Why You Still Need Guns, Gold, and a Getaway Plan... - 23rd Jun 18
Cheap Gold Stocks Bottom Basing - 23rd Jun 18
A Trade War Won’t Be Good for the US Dollar - 23rd Jun 18
SPX/Gold, Long-term Yields & Yield Curve 3 Amigos Update - 22nd Jun 18
Gold - How Long Can This Last? - 22nd Jun 18
Dow Has Fallen 8 days in a Row. Medium-long Term Bullish for Stocks - 22nd Jun 18
Trouble Spotting Market Trends? This Can Help - 22nd Jun 18
Financial Markets Analysis and Trend Forecasts 2018 - A Message from Nadeem Walayat - 21st Jun 18
SPX Bouncing Above Support - 21st Jun 18
Things You Need To Know If You Want To Invest In Bitcoin Now - 21st Jun 18
The NASDAQ’s Outperformance vs. the Dow is Very Bullish - 21st Jun 18
Warning All Investors: Global Stock Market Are Shifting Away From US Price Correlation - 20th Jun 18
Gold GLD ETF Update… Breakdown ? - 20th Jun 18
Short-term Turnaround in Bitcoin Might Not Be What You Think - 19th Jun 18
Stock Market’s Short Term Downside Will be Limited - 19th Jun 18
Natural Gas Setup for 32% Move in UGAZ Fund - 19th Jun 18
Magnus Collective To Empower Automation And Artificial Intelligence - 19th Jun 18
Trump A Bull in a China Shop - 19th Jun 18
Minor Car Accident! What Happens After You Report Your Accident to Your Insurer - 19th Jun 18
US Majors Flush Out A Major Pivot Low and What’s Next - 18th Jun 18
Cocoa Commodities Trading Analysis - 18th Jun 18
Stock Market Consolidating in an Uptrend - 18th Jun 18
Russell Has Gone Up 7 Weeks in a Row. EXTREMELY Bullish for Stocks - 18th Jun 18
What Happens Next to Stocks when Tech Massively Outperforms Utilities and Consumer Staples - 18th Jun 18
The Trillion Dollar Market You’ve Never Heard Of - 18th Jun 18
The Corruption of Capitalism - 17th Jun 18
North Korea, Trade Wars, Precious Metals and Bitcoin - 17th Jun 18
Climate Change and Fish Stocks – Burning Oxygen! - 17th Jun 18
A $1,180 Ticket to NEW Trading Opportunities, FREE! - 16th Jun 18
Gold Bullish on Fed Interest Rate Hike - 16th Jun 18
Respite for Bitcoin Traders Might Be Deceptive - 16th Jun 18
The Euro Crashed Yesterday. Bearish for Euro and Bullish for USD - 15th Jun 18
Inflation Trade, in Progress Since Gold Kicked it Off - 15th Jun 18
Can Saudi Arabia Prevent The Next Oil Shock? - 15th Jun 18
The Biggest Online Gambling Companies - 15th Jun 18
Powell's Excess Reserve Change and Gold - 15th Jun 18
Is This a Big Sign of a Big Stock Market Turn? - 15th Jun 18
Will Italy Sink the EU and Boost Gold? - 15th Jun 18
Bumper Crash! Land Rover Discovery Sport vs Audi - 15th Jun 18
Stock Market Topping Pattern or Just Pause Before Going Higher? - 14th Jun 18
Is the ECB Ending QE a Good Thing? Markets Think So - 14th Jun 18
Yield Curve Continues to Flatten. A Bullish Sign for the Stock Market - 14th Jun 18
How Online Gambling has Impacted the Economy - 14th Jun 18
Crude Oil Price Targeting $58 ppb Before Finding Support - 14th Jun 18
Stock Market Near Another Top? - 14th Jun 18
Thorpe Park REAL Walking Dead Living Nightmare Zombie Car Park Ride Experience! - 14th Jun 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

SILVER: The Illegitimate Child Of The Commodities Family

Commodities / Gold and Silver 2012 Feb 08, 2012 - 06:30 PM GMT

By: I_M_Vronsky

Commodities Best Financial Markets Analysis ArticleSince January 1980 the values of US Commodities have been affected by growing demand and the price increasing effects of inflation. All commodities have enjoyed price increases�ALL EXCEPT SILVER, which is virtually flat�even though the demand for the white metal has been explosive in recent years.

The chart below shows the nominal (actual) price increases during the past 32 years (since January 1980 to close of February 3, 2012):


Commodities Appreciation since 1980:

To put this anomaly into even more perspective, compare the following Prices, Adjusted for 32 years of inflation (all prices in US$):

Without question, SILVER at a mere $34 (February 2, 2012) is grossly under-valued vis-�-vis other commodity prices and compared to its Inflation Adjusted value of $141/oz. Indeed SILVER is the Illegitimate Child of the Commodities Family�at least until NOW.

THIS WILL CHANGE STARTING IN 2012

There are a number of factors, which will contribute to SILVER's accelerated price rise in 2012 and for years to come.

Growing Consumption

Demand for SILVER is increasing tremendously through industrial usage, medical applications and especially speculative investments.

Increasing Media Attention

Heretofore SILVER has not enjoyed the media hoopla that blesses gold or crude oil. That is about to change as investors discover that SILVER's value has increased 150% during the past three years (well above gold's and CCI performance in the same time frame). See Performance chart below.

SILVER Demand Exceeds Mine Production

The growing Demand/Production Deficits will indubitably fuel SILVER to ever record highs in 2012 and beyond per SILVER DEMAND EXCEEDS MINE OUTPUT chart:

How China Will Drive Silver To $250/oz

www.gold-eagle.com/editorials_08/krauth102411.html

A Basket of other factors Propelling SILVER to record all-time highs

- US Fed keeping near ZERO interest rates until late 2014...HIGHLY INFLATIONARY

- US Fed implementing QE3 to stimulate the economy...HIGHLY INFLATIONARY (look at 2009 rocketing prices due primarily to the deployment of QE1, which started in early March 2009)

- Global currency devaluations contagion...HIGHLY INFLATIONARY

- Slow devaluation of the US greenback as CHINA, INDIA et al start buying crude oil...and paying in GOLD

- The current GOLD/SILVER ratio of about 50 will slowly fall to the long-term historic ratio of 17:1

- Millions of international investors discovering gold and silver have been the most profitable investment classes since 2001

- US Pension Programs, Insurance Companies and Bank Trust Depts piling into precious metals. See analysis: "Pension Plans, Insurance Companies & Retirement Programs (IRAs)" www.gold-eagle.com/gold_digest_08/vronsky020310.html

SILVER FORECAST

The Illegitimate Child of the Commodities Family will gain phenomenal prominence beginning in 2012 - as SILVER's relative performance soars well above the rest. Here is SILVER's Forecast by one of the world's best Technical Analysts, Alf Field:

"NEW EW SILVER DISCOVERY"

Analyst Field concludes, "Thus the gain in wave 3 of Major THREE should be larger than +464%. It should be a gain of at least 500%. Starting from the $26.39 low, a gain of 500% would produce a target price of $158.34 for silver. That is the number which equates with the $4500 price forecast for gold and produces a gold to silver ratio of 28.4 ($4500 divided by 158.34)."

The link below shows Alf Field's entire TA on SILVER:

www.gold-eagle.com/editorials_12/field013112.html

To be sure SILVER' s price trajectory going forward will be characterized by high volatility. But for those who can hang on, unimaginable profits will be their just and well earned reward.

In light of the above, the once Illegitimate Child will soon become the Elite Silver Star and Pride of the Commodities Family.

DISCLOSURE:

I own shares in select SILVER companies - and plan to accumulate more as the price of the white metal moves inexorably higher in the coming months and years.

By I. M. Vronsky
Editor & Partner - Gold-Eagle
www.gold-eagle.com

© 2012 Copyright I. M. Vronsky - 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.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

TBB
09 Feb 12, 12:56
SILVER: The Illegitimate Child

The issue with comparing 1980 silver to anything is not what it appears. The price of silver ran up to $50 an ounce because the Hunt Bros. tried to corner the market. This is an event that would do the same for anything that was cornered. If the other commodities you are comparing silver to had also been the attempt of one person or one group to own then that commodity would have risen substantially as well. Since this did not happen to these other commodities we really have no idea what their value would have been in 1980. But to compare 1980 silver to any other commodity based on a price that was driven up by a sole ownership attempt is bogus.


peter
09 Feb 12, 17:49
hunt brothers

The hunt brothers never cornered the market or even came close. This was government propoganda...blame the speculators. The hunt brothers were foolish and ended up being the fall guys. At the peak, silver was only trading at historical levels in relation to gold...hardly a cornered market. The government desperately needed to crash the precious metals market to save the dollar, and so they exaggerated the story of the hunt brothers 10 fold, increased margin requirements and ratcheted up interest rates...a full court press. IT WORKED! and history was written by the victors and the losers went to jail.


Post Comment

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

6 Critical Money Making Rules