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Silver: From $30/oz. to over $500 by 2020. In under a minute, I can
tell you why that price must happen, and likely
when. It seems to me that the public will one day wake up and start
buying silver to protect from inflation. Thus, long before, say 10-20%
of people buy silver, at least 1% of the American public will buy
silver. We can calculate what might happen to the silver price when
that happens.
The amount of money in US Banks is about $18 trillion. 1% of
that is $180 billion.
Very little silver is left; it's mostly all been consumed, so most of
what is available to buy is the annual new mine supply which is 700 million
ounces.
$180 billion is $180,000 million. Divide that by 700 million,
and we get an implied price of $257 per ounce. Do the math
yourself. I'll wait.
But that price would mean that there is no newly mined silver left
over for any industrial use, and that nobody else outside of the USA could
buy any of the world's newly mined silver. Clearly that can't happen;
those two groups would continue to buy silver, competing to buy, and driving
up the price even more.
Thus, silver is very likely to be about $500/oz., by about the time
that 1% of the American public wakes up and starts to buy silver. That
will be the very beginning of the bull market in silver, when measured by
"popular demand" -- and at that price, silver would still be very
unpopular.
Just remember these key facts, and don't let anyone, or even yourself, trick you out of this developing
bull market in silver. Don't try to time the peaks, don't wait for
dips, just buy and hold real silver, not any kind of paper silver promise.
What kind of annual gains will that be? Let's see, if silver goes from
$30 to $500 in ten years, the compound interest rate calculator tells us that
will be an average annual gain of 32.49%, which is about the same as what
silver has done in the last seven years, from $4.15 to $30, which is a gain
of about 32.66% per year, on average.
Oh, by the way, the 1980 high for silver was $50/oz. That was
when M3, money in the banks, was about $1.8 trillion. Today, the monetary
base has increased about ten times higher. Thus, the true inflation
adjusted peak for silver would be $500/oz. That just further confirms
this $500 estimate.
But there are many reasons why silver should surpass the former highs.
Key reasons to surpass the former 1980's peak:
1. Silver is more scarce due to 30
more years of industrial consumption.
2. Paper silver scams are more abundant.
3. Baby Boomers will be retiring, cashing out stocks and draining
pension plans that have not yet invested into silver, causing other
investments to vastly under perform silver, making
silver ever more attractive.
4. More trend investors today will notice the silver bull market and
continued gains in the silver price, and invest in it, and carry it to
further highs.
5. The US government and political leaders are spending like never
before, and the people, even the world over, lack the political will to
control government spending which will ruin all currencies.
6. There are no "safe" currencies to run to, leaving gold and
silver as the only alternatives; and gold and silver have been in bull
markets in all major currencies for 10 years now.
I'm sure you can think of many other reasons, but that's enough for
now.
So, the true skeptic may ask, "Yes, but this guy is a coin
dealer, he's just pushing his product because he has plenty of silver he
wants to dump. Besides, what kind of argument will he come up with to
sell silver after it hits $500/oz.?"
Let me answer this two part question. Yes, I do have
silver! I have it, because I believe that the price will go up a lot,
thus, it makes perfect sense for me to carry it as inventory. I sell
it, because few people are able to buy it in bulk like we can, so I use my
own stash, and industry connections, to enable others to buy it.
But what will I say after silver hits $500/oz., or nears that price?
I'll say, "Obviously this bull market in silver is just getting
started. Only 1% of American public money is buying silver per
year. Just wait until at least 10% of US money is buying silver in a
year, the price will be well over $2500 to $5000 per oz. for silver."
But I would never make that argument now. Too few people would
believe me, and they would think I'm some kind of kook. And people
never do business with kooks.
And what will I say when silver nears $2000/oz.?
I'll say, "Everyone knows it only costs 4 cents to print up a
$100 bill, and everything returns to its intrinsic value. But used
paper, particularly smelly paper, is worth even less, which is useful only
for things like lining the bottom of the cages of birds, or burning in the
fireplace. Thus, the price for silver will soon only be quoted in terms
of gold, and certainly not quoted in terms of any kind of paper money at
all." But again, I'd never say that today, everyone would think
I'm crazy.
Oops. Too late for me. But it's not too late for you to buy
some silver!
=====
I strongly advise you to take possession of real gold and silver, at anywhere
near today's prices, while you still can. The fundamentals
indicate rising prices for decades to come, and a major price spike can
happen at any time.
Sincerely,
Jason Hommel
Silver Stock
Report
I strongly advise you to take possession
of real gold and silver, at anywhere near today's price, while you still
can. The fundamentals indicate rising prices for decades to come.
Price Board:
http://hommel.name/cgi/priceboard?store=jhmint.com
Our Coin Shops are open 10AM to 5PM Pacific Time, Monday to Friday, closed
weekends.
JH MINT & Coin Shop, Grass Valley, CA -- our largest store, minimum $1500
to ship, USA shipping only, free shipping.
(530) 273-8175
Kerri: 530 273 -8822 silver_support3@hotmail.com
www.jhmint.com
Rocklin Coin Shop, CA -- 15 min north of Sacramento on HWY 80
www.rocklincoinshop.com
Mom's Silver Shop, Sacramento, CA
www.momssilvershop.com
3510 Auburn Blvd., #12
Sacramento, CA 95821
(916) 481 5656
(Mom will ship with no minimum order size, and overseas, and take credit
cards and paypal.)
Oakland Silver and Gold
www.oaklandsilverandgold.com
3929 Piedmont Ave.,
Oakland, CA 94611
osg2010@gmail.com
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