Silver Is On A Tear Today

Have you heard? The guy who runs Pawn Stars is now stating that silver is going to be in short supply. This is the 6th year of a supply shortage. He’s looking at no supply from China, heavy industry usage and a lack of raw production.

 

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Yes, I could be wrong about what I wrote previously. It's just a guess. I think silver at $500 or even $1,000 per ounce is not out of the realm of possibility in the next few years, but to my mind it's not the most probable outcome. The most probable outcome is a massive correction based on historical patterns. To be clear, I don't think anyone knows the future. As I said previously, humans are horribly bad at predicting the markets - some get lucky and get some media shine now and then.

 

I think you raise some good points, Jol....but I think it's the HOT MONEY that would try and tie the price of silver to future Fed rate cuts from a guy who might lean towards rate cuts (dovish) while at the same time ripping the Fed for their balance sheet bloat (super-hawkish).

If the Fed cuts 25 or 50 bp....but trims the balance sheet 3 trillion dollars....is that bullish for monetary liquidity and the markets ? I would say NO based on my 4 decades of Fed Watching.