Predictions for gold and silver prices?

I just looked and it’s up today. Another $.45 and it’s $60.00 an ounce.

 

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At this point, silver has basically doubled over the course of the year.

Say what you will about the dollar and its strength, but I'm glad groceries and electricity haven't gone up at the same rate. Cars and houses too, for that matter, even though I'm not currently in the market for either.

 

I think silver is up about 90% for the year. I can smile with my holdings on that one but I think it’s going to continue next year as well.

 

Yep…. Over sixty now

 

Go baby go

 

My Magic 8 Ball is broke'd. I'm not predicting anything, but I'm smiling.

 

Apparently I was "buying low" when I bought all that overpriced silver 10-15 years ago...

 

I hear that! I’m selling but only in my antique shop. And it’s selling so fast I can hardly keep it in stock. At least I get 100% of the proceeds. No premiums to pay to a dealer for the sake of getting some extra cash.

 

I know a guy who has a pawn shop and isn't anxious to sell any silver he gets his hands on. He wants to sit on it and wait, his planned retirement fund. That's an oddity for a pawn shop.

 

Hey, if the rest of his cash flow supports it, more power to him. But as long as he's getting a good margin, the more he sells, the more he can afford to buy.

I feel bad, though, for anyone who made the same decision in 2010/2011 and then tried to retire a few years later.

 

Me and you both!

 

To me it seems like silver is just starting to catch up to home prices, groceries and electric. I remember back around 2013 I said if silver ever gets below $30 again I'd be backing up the truck. That was a long time ago. $30 silver still in early 2025 given all that's happened between then (2013) and now, did not seem realistic anymore.
I was buying earlier this year. Made a trade two months ago at $50. Was a mistake but walked away with a big need. Bought a 100 gram bar as late as mid November at $50/oz.
Now you don't know where it could go. Every day's a new adventure. I don't know how a coin shop could handle this. You'd want a wait and see approach but it just keeps rising. Silvers going to be coming out of the woodwork of this country that hasn't seen the light of day in years.

Going to be more scammers coming out too. If people are willing to sell back of spot you'll never know if it's legit or a scam unless you've got a Sigma when it arrives. Apmex is selling 1 ozers $8-$10 over.

 

A shop that wants to buy and hold while prices are going up might not be in business for long.

A shop will always have to maintain enough of a spread to keep the lights on, but they also need to buy at prices strong enough to keep material flowing in, and sell at prices low enough to keep it flowing out. I'm glad it's not my job to do that juggling.

 

You can only eat just so much steak before you choke

 

And the older you get, the smaller that amount gets. The more I can afford steak, the less I can eat.

 

Made it to $64.72 before some profit taking. Now the wife wants to take a cruise. I just can’t seem to win

 

It sure is an oddity but I think with what’s taking place with silver it’s a good move.

 

Probably mid-1960's, Gilbert ?

It was probably what would grade today as an AU-50's coin.

 

Really great post, Prince.

I wonder why hedging would be such a concern though. If you ARE in the business of buying and selling silver, unless the price spiked ASTRONOMICALLY...a slowly rising price, even to new ATHs, shouldn't be a concern, right ? You make your spread on the way up...and even if you lose a bit buying at the high....if it declines, you keep replenishing at lower levels and adjusting your retail/wholesale prices on the way down to make a profit. And of course, silver also has periods where it is flat in price and you find it much easier to make a profit.

So IS hedging a really big need except when the price is extremely volatile ? I mean, if your ran a hamburger stand the the price of meat kept going up, you wouldn't really need to hedge so long as you just kept raising prices to cover rising meat costs and inventory cost changes. Assuming no leverage (borrowed $$$), that is.

Am I somewhat correct ?

 

Historically, this is what silver has done, even though to be honest a 55 year history of free trading is not that big a data set.

Silver exploded during the 1970's....tripled into the Hunt Squeeze in about 2 months....lost 80% in 2 months.....then did nothing for 2 decades and declined an additional 50-60%.......then went up 10-fold in a decade....then lost 80% over a decade....then went up 5-fold in 5 years coming out of 2020.

During those times you had these once-in-a-lifetimes: fixed-to-floating prices for the metals and currencies.....historic inflation.....the end of the Cold War.....the end of a 35-year bear market in bond prices....the end of mass silver photography....expanded industrial uses.....a pandemic collapse in prices....and recoveries along the way.

By my count, you had 3 condensed periods of 10-fold returns for silver...only 2 for gold.