There are several major forces that will continue to drive the price of silver higher over the long run. Most of these forces have been in effect for at least 100 years. These are fundamental market drivers that are not likely to change in your lifetime. The secular bull market in silver is in its youth and has years if not decades to run. It will likely gain a powerful head of steam from where it is today.
First, silver will increase in price because our corrupt federal government in league with the banksters at the Federal Reserve will continue to dilute the value of the dollar through massive currency inflation. This monetary inflation will cause commodity prices to escalate, especially precious metals pricing. Precious metals such as silver and gold are seen to be a hedge against inflation, a more reliable store of value than the “Federal Reserve Note”. As the dollar crashes and is destroyed through massive printing of new dollars you can expect to see countries, central banks, and populations trading their dollars for something with no counter party risk, precious metals. This rush to metals is the primary reason why the silver and gold pricing keeps escalating. (see: https://www.area-info.net/articles/show.php?cty=Logan&st=Utah&article_id=762 )
Savvy investors world wide seek the safety of precious metals in times of monetary inflation, price inflation, and currency dilution. This printing of more and more money is driven by massive deficit spending and massive spending in general that can not be fully funded by more borrowing and more taxing, but must ultimately be funded by printing more Federal Reserve Notes. Our government has made promises it can’t keep. It will inflate the value of the dollar out of existence to keep the charade and the party going as long as possible. More and more people in the world wake up every day to the historical fact that paper money never retains its value in the long run. Whereas, gold and silver never drop to zero value as a currency might.(see: https://www.area-info.net/articles/show.php?cty=Logan&st=Utah&article_id=760)
Precious metals has not yet become the main stream investment that it will soon become. Today only about 3% of Americans and 6% of Europeans invest in precious metals. In India and China precious metals have centuries of tradition behind them. In America and Europe the central bank and government propaganda machines have tried to discredit precious metals and sell their fiat currencies. They can’t pull the wool over the eyes of their populace forever. People are beginning to wake up to the terror of what inflation really is and what it really means. Once half of the masses wake up you can expect to see precious metals prices bid up to astonishing heights.
Second, silver will increase in price because the industrial demand for silver continues to rise as uses for the metal escalate in the electronics industry, the health care industry, the jewelry industry, and elsewhere. Much of the silver used in computers, cell phones, iPads, and other electronics is consumed and never recovered for reuse again. Although theoretically this silver that is consumed in production could be recovered, the cost to do so is often prohibitive.
Third, silver will increase in price because the global population is increasing and becoming more wealthy per capita. As China, Russia, India, Brazil and other countries emerge from the dark ages they demand more and more consumer electronics, solar panels, jewelry, autos, pure silver investments, and other products with silver content. This trend will not reverse now that it has begun.
Fourth, the cost of mining, refining, and distributing silver is expected to escalate. Inflation will cause this in part. The fact that the easy to reach silver in the earth’s crust has pretty much been mined and it is now becoming more expensive to find will also drive up the dollar price. Silver is mostly a byproduct of the mining of other metals. That inelastic supply of silver in the face of escalating demand for silver will also drive up the retail pricing of anything containing silver.
Now is the time to protect yourself and your family from the ravages of currency inflation and its byproduct, price inflation, by taking delivery of actual silver. Silver is a safer haven for the value of your savings than the dollar is. It is recommended that you buy an inflation hedge in the form of physical silver and take delivery. It’s not too late to take advantage of the trend in silver (see: https://www.area-info.net/articles/show.php?cty=Providence&st=Utah&article_id=750). We haven’t yet seen $100 per ounce silver, but we probably will soon. (see: https://www.area-info.net/articles/show.php?cty=Salt%20Lake%20City&st=Utah&article_id=1245)
Paul Mladjenovic recently wrote: “What will silver???¦??s price look like a year from now???¦??or 29 months from now? I am on record as forecasting that silver will hit $100 during 2012-2013. If silver were to mirror its percentage run from 2008-2011, then you are talking about silver???¦??s price being in the general vicinity of $142. There are some that offer compelling views that silver could easily exceed $200 in the same general time frame.” For the full article visit: http://www.kitco.com/ind/Mladjenovic/20120424.html
Investing in real estate, stocks, bonds, and precious metals is risky and could result in losing money. I am offering ideas for your consideration and education. I am not offering financial advice. Please do your own due diligence and study before making any decision to invest. I am not an investment adviser. Precious metals is not for everyone. I am a precious metals broker and sell precious metals. You should do your own due diligence when making investment decisions of any kind. You should consult your own financial advisers before making any investment decision. I make no guarantees that by following any advice or suggestion I make that you will realize any return or that you will not see losses. Beware, all commodity markets and other markets carry risk of loss.