The silver value has soared to the highest silver spot price in 30 years. So what exactly is the outlook for silver prices, the preferred profit strategies or favoured profit plays for the rest of the entire year? 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. That is up 32% for the year so far and more than doubled since last September. The question many are asking is where is it going from here, and just how should one position themselves?

The consensus from many of the market professionals is that the long lasting outlook for silver continues to be bullish. But that it is currently over bought along with a pullback maybe even returning to $30.00 may occur. Most appear to agree that silver will probably run as much as a high of $50.00 at the end of the season, the bearish outlook says that it could take 3 to five-years to access $50.00.

If you consider the silver gold ratio over recorded history you discover it to be between 16:1 and10:1. At 16:1 along with a $1500 current gold price would indicate silver is under valued and must be trading closer to $92 per ounce. Why aren’t we in that level? Either gold is overpriced or silver is under-priced or even the world is different. I believe it will be the later.

Many of the current investors want to as being an inflation hedge, but that is really only portion of the story. Not just is silver undervalued versus gold, but silver is really a hedge having an industrial kicker. Silver can be used in thousands of industrial processes and it is in high demand. Over half from the silver being produced today gets consumed buy industry. We’ve all seen the ways to use silver continually grow in this electronics age. Thirty years back we enjoyed a twenty year supply of silver above ground for industry. Today that supply has dwindled to less than a year’s supply.

Something’s wrong here, and the only explanation I can see is some sort of government or central bank manipulation has been happening for several years. That may be great for silver investors because when corrections do take place, they inevitably over shoot the equilibrium mark with a considerable amount.

There is another issue driving gold and silver prices right now that lots of are not aware of: precious metals are on the go by nation states. This can be a game changer. The CPM Gold Yearbook reports the aggregate total of the amount of ounces of precious metals bought or sold by nations worldwide. Considering that the early eighties governments have been selling. In 2008 it absolutely was predicted that 5 million ounces will be purchased in 2009. The 2010 CPM Gold Yearbook shows a net purchase of 15 million ounces. This rqihjx an indicator that governments worldwide are beginning to distrust the need for the American dollar. And this doesn’t include some countries such as Iran and China who don’t report their actions but who definitely are rumoured to become buying large volumes.

Finally, silver coins have grown to be the “common man’s metal”. In case you are you are wanting to buy precious metals along with your choice is between gold at $1500 per ounce and silver at $40 per ounce, so many people are opting for the $40 since it is apparently a great deal.

So has got the silver chart shown that silver has moved too far too quickly? Some are expecting a significant pull back in price before continuing to test the 1980 record price of $50. Others look at the 1980’s record price and adjust the price for inflation and discover the spot silver price needs to attend $130 per ounce in order to equal that record. So there may be a considerable ways to travel yet, without even taking into consideration around the globe financial circumstances today. I don’t plan on selling any silver bars or silver bullion coins sooner.

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