What do you think is the highest price silver could reach before....

What do you think is the highest price silver could reach before industrial users start to cut back on a large scale? Do you think people would still use silver like they do today if it hit $200?

 

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I've thought about this, but I don't think it is relevant. IF silver prices rise to what people would consider very high prices, it will be because of investment demand, not industrial demand. In that case, industrial demand could go to zero and it wouldn't matter. All of the investment grade silver in the world probably doesn't amount to much more than a billion ounces. When you consider the fact that many institutional investors manage a half-trillion or more in assets, it becomes obvious that if even one of these giants decides to take a 2% position in silver, they would have to buy all the silver in storage in the world. I don't expect this to happen, but investment demand is the key to higher silver prices, not industrial demand. But it must also be considered that a very large amount of silver is consumed by the defense industry where price isn't as important as performance. There are things silver can do for which there is no equivalent substitute.

 

More importantly, what do you think and why?

 

Bullion is in a bubble IMO.

 

Cloudsweeper 99 hit the nail on the head when He stated that silver has very little acceptable substitutes. With China utilizing more of it for industry and jewelry, and investors flocking to it as cheaper alternative to gold,(amongst other reasons).......The ceiling is a very high one, and the latest gradual climb of silver is no surprise to most. (and in my humble opinion long overdue)

There are too many factors in the global economy that favor a steady rise of silver. I can`t see drastic spikes, but that`s fine with me. : ) My personal opinion is that silver will hit the $32 mark by this time next year.....and I would not be shocked to see it hit $48 or so either. (although I wish it hang around $20 for a few more months so I can load up on it) : )

I posted this site before on here about all the applications and facts about silver.....very thorough and informative. It can answer many of Our questions about silver.

http://www.silverinstitute.org/silver_uses.php

 

I began buying silver years ago, as part of a diversified long-term investment portfolio. When it hit $20 this month, I sold about 7% of my holdings (got rid of the low-grade stuff - scarred bars and anonymous rounds). I might do something similar at $30. Other than that, I bought to hold long-term, and intend to hold long-term.

 

The last time we need gross amounts of silver was in WW11 for the Manhattan project. We did not need silver ,but had run out of copper for wiring. the separators of U-238 to U-235 . The Calutron was not an efficient means to resolve the needs. Tonnes of silver was borrowed from the government to make wire with. After the war it was stripped and remelted into ingots.
Pep

 

when the interest rate continue to go up. and the u.s. dollar start to rebound and recovery. federal government minimize printing of money. then at that point. the prices of silver and gold should be at the highest and start to go down.

 

To keep us from having a monetary crash interest rates should start up now. The thing is zero rates, and no one can borrow money. Small business is going under with this theme. Hyper inflation could be a result of the money policy.
I believe it will be a long time before people forget gold and silver. In the great depression there was no gold to speak of, and silver was pocket change.

 

I think You might be right.

 

Silver is going to drop to $2.00 per ounce a few days after I strike it rich, just in time for me to buy a few thousand ounces. Then it will skyrocket.
Now realistically, my completely crazy out of the air guess is silver is going to top out at $37 per ounce. Anyone want to start a just for fun contest?