5 factors that will push silver to $250 an ounce

All bull markets go through periods of consolidations and corrections. And precious metals are no exception.

There has been plenty about gold's swan dive, but less talk about silver. And at this point there's more potential for silver than gold...significantly more.

Because the global silver market is relatively small, silver prices tend to be more volatile; the pounding selloff we witnessed in silver this past month is a testament to that fact. But volatility works both ways, so when silver rises, its price can explode higher.

http://moneymorning.com/2013/04/25/5-factors-that-will-push-silver-to-250-an-ounce/#

 

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$250 an ounce? I could retire! YAY!!!

More likely I'll need some of whatever you're smoking though

 

Do you mean what Peter Krauth is smoking? I didn't write that article.

 

LOL, ok, good point there

 

If silver suddenly went to $50 an ounce many hoarders would probably cash in and sell there stash creating an instant glut of silver dropping the price rather quickly. There is quite a bit of silver out there hidden away in peoples stashes including mine !

 

was that $250 or $2.50 ?

 

Seems like we see these nutty articles every time silver falls or stagnates and firms need to move product. I'm still waiting for $10,000 oz gold that now mysteriously absent members predicted we'd see for sure by 2010.

 

It's all about purchasing power. I don't want to see an America with $250.00 silver.

 

Exactly, and I always find it laughable, that the same jokers who say it is going to $250 an oz. or whatever are more than willing to sell it to you for $23.00.

 

If it's going to $250 an ounce it better get started, because it isn't happening today.

I think it's down almost a buck...

 

Next come the " I am going to back up the truck " if it drops below $20" group. Yep, all 5 silver rounds it can carry. I am not demeaning the small buyers, just that most who make such a statement and carry it out, Are mostly likely such.

 

You mean like the guy a couple posts above yours that was going to buy below $18...which still hasn't come yet...

 

Good article. It's unfortunate seemingly noone took the time to read it and understand it, and felt compelled to comment on the title alone, but then I should be thankful that it's so easy to stay ahead of the curve. I'm not though, because the less people who take steps to preserve their wealth from a corrupted financial system the more people who are going to need help from people who are prepared. I would rather they help themselves now, and just as importantly be in a position to help others when the paper bon fire goes up.

As the article alluded to, the lower the silver price goes the easier it is to manipulate. As the price drops the supply decreases because people are acquiring the physical metal at a bargain. Supply * Price = Market cap, and with both of those decreasing due to the absence of free market forces in a market by proxy, silver becomes increasingly easy to move with less dollars. This is because price is not rising as supply decreases, because the law of supply and demand has been circumvented.

This is why silver is so volatile, and the volatility can go both ways. I am not making any predictions or promises, merely accentuating that this market is a powder keg.

Personally I believe we will see dollars go extinct before triple digit silver, and a new price valuation method taking their place.

 

it will continue on the downward trend, with minor spikes and dips along the way, to $15/oz. or less. I'm a big believer in history repeating itself. In the late 1970's silver and gold were in a bubble just as has happened again a few years ago. Then in the early-mid 1980's the bubble popped. The immediate, dramatic plunge trickled downward until silver was sub $10/oz. and even half of that in the early 1990's. That means that from the peak to the low, around a decade passed.

When silver rose to $30/oz. a couple years ago I posted a nearly identical comment on another thread. I quit actively buying silver when it got to $18/oz. in mid-to-late 2009. So far my prediction, or expectation, really that it will happen again, has been accurate.

 

I think to be fair it should be "merely accentuating that this market is a powder keg outside in Seattle weather" as it could regress even farther ( IMO of course).

 

In the 1970's silver and gold were not represented by contracts. There was no SLV, GLD, or derivatives. China was not allowed to buy metals. If I'm looking to buy a car it doesn't make sense to compare with crash test ratings for the Model T.

Silver could very well go to $15. It could go to zero. Silver is not silver anymore as far as price is concerned. It's a cyber asset. Until that changes we will not see any semblance of fair value, whatever that may be.

However I do feel confident in saying nobody will ever be able to purchase an ounce of physical silver from a dealer for less than $20, no matter the paper price.

 

Yup, can go to zero Can go to infinity

 

The fact remains, none of the market forecasters that have claimed pm's would skyrocket have ever been remotely right, nor have their reasons ever come to fruition. Is it any wonder most see it as simply blowing smoke? Whether silver and gold bugs like to admit it or not, their commodities they hold in such high esteem as being safeguards against inflation and fiat failure, they are nothing more than another form of fiat that, as we've seen in the past, do little to nothing in protecting it's owners from financial collapse. But, by all means, believe what a metals broker try's to scare you with.

 

Hmmm... Are you trying to say Gold is just yellow metal??? Useless in a disaster??? What if everyone figures this out??? LOL

 

Maybe you 2 could tell yourself that the rise from $300 to $1900 isn't a significant rise, but you'd probably be alone...and there were plenty of people calling for that, and not all of them were trying to sell you metal.