market price of silver

Is Silver Headed To $5/oz?

Is Jason Hommel saying silver is headed to $5 per ounce?

I don’t think so. Hommel is just kidding.

In fact, he says, there is no explanation for the drop in silver and gold prices, other than the standard “manipulation” by the banks who trade in futures contracts.

CashThe oceans of currency being printed by the US are not yet flowing to silver. But they will, and then silver prices will rise sharply.

Interest rates have been manipulated for years now, and because it would be lunacy to bankrupt American business, they cannot be allowed to rise to compete with gains in the precious metals market in order to stop the bull market in gold and silver.

The bond market is huge—in the $20 to $50 trillion range. If interest rates rise, bond values go down. In a collapsing bond market, bond investors will move to protect their trillions, and opt for gold and silver.

The world’s central banks and Western governments cannot let markets naturally purge themselves, as the markets are too grotesquely out of balance and mismatched in size.

But they can’t keep interest rates low forever, either, because real rates are now negative, with interest rates well below the real inflation rate. People are being paid to borrow money: That is uneconomic, and unsustainable.

Imagine if interest rates went over 20% like the last time they were allowed to rise, in 1980, to contain gold prices. Seventeen trillion dollars in debt financed at 20% would be something like $4 trillion per year in debt payments alone.

That kind of currency printing to pay bondholders would be highly inflationary, driving silver prices well beyond $1,000 per ounce. Thus, the bull market in gold and silver is far from over.

Hommel expects silver to head past $75 in the next year or two. Now is the time to sell bonds, real estate, and currencies, and buy silver. Buy on the dip, while you still can.

Read the complete article here.

Silver Bullion Bars

At no time has silver been worthless. While that may seem like a silly statement, if you really think about it, stocks and bonds, real estate, many other types of investments may become less than stable, but at no time in history has precious metal been worth nothing at all, or been hard to sell.

5oz Apmex Silver BarFor thousands of years silver was the weight by which wealth was measured. It was cheaper than gold, but has been the basis for entire civilizations.

Even the renowned Warren Buffet did his bit with the precious metal.

In the late part of the 1990’s Buffett bought more than 100 million troy ounces (a few thousand metric tons) of silver. He did so at a price of about 4 dollars per troy ounce or a bit more. The silver price doubled and Buffet apparently sold, announcing in 2006 that he no longer held silver as an investment.

Pricing plummeted in 2008, as did many others but since then has continued to rise, slowly but steadily. Silver bullion prices can fluctuate quite widely dependent upon the supply and the demand for it. Silver is currently enjoying a very wide popularity as an investment item because the prices have been relatively good and they are steady prices.

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