I don’t know much about what drives Silver prices but I did get in on a good amount when it was at $24. Now wondering if I should cash out before it crashes or is there a strong chance that it does continue to climb and to what? I hear so many opinions about what’s driving it up but I don’t know what to believe.
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Silver and gold have been suppressed for 90+ years for one single reason; to create the APPEARANCE that fake, fraudulent, fiat FedBux are valuable.
The natural occurrence of silver and gold in the earth has been about 10:1 for millennia. Only in the past 120 years was it artificially manipulated so that the banksters could make gold (the money of kings) more valuable. Following the FDR's fraudulent "gold confiscation" in 1933, the ratio started to diverge eventually stabilizing around 30:1 for several decades.
Then in 1971, gold and fiat FedBux were decoupled, making fiat paper IOUs effectively worthless -and an infinite supply possible. The wealthy old-timers in the 1970s understood this and fought for legal ownership of gold in the face of said tyranny. They got it in 1974, the controlling cabal by this time had unlimited power to achieve all their goals.
The next 5 years saw gold go from $35/oz to $665/oz, almost a 20X profit. And of course silver peaked in this era at around $50/oz. The freely operating precious metals market of the the late 70s into 1980 was approaching the natural balance ratio, which was about 13:1 for this brief window.
Today, so many "off the books" FedBux have been printed out of thin air, it's all but impossible to arrive at a fair market value for what gold should be worth. Suffice it to say, it's nowhere near where it should be. Some will argue gold should be in the neighborhood of $200K/oz (you read that right, $200,000). Others who trust the Federal Reserve numbers argue it should be in the range of $20-$25K/oz. All agree gold at $10k/oz is not only realistic, but inevitable in the short-term.
So you'll have to decide who is likely right, and WHEN said re balancing will occur. As of right now, gold is around $4500 and silver now closing in on $80 as I type this. So the current unbalanced, artificial ration is 56:1. Almost twice the artificial 30:1 ratio of the early half of the twentieth century, and 5+X off the natural, historical ratio.
Thus, if gold were to peak at say $5000/oz in the next few months, and silver were to close the gap to the 30:1 ratio, silver would be at $166/oz. Were silver able to get to the natural 10:1 ratio next year (manipulators eradicated) it would be $500/oz.
Or maybe gold does go to $10,000/oz next year. Worst case scenario and silver only maintains the current 56:1 ratio it would be at $178/oz.
If I were a betting person, I'd be the farm that gold is going to continue going up for the foreseeable future and the silver:gold ratio will continue moving down. By this time next year, many of the best prognosticators I listen to are suggesting silver should realistically be in the range of $250/oz....minimum.
But as always, caveat emptor.
Interesting 🧐