Silver Prices for the Year 2017

Silver Prices for the Year 2017

How low and how high will the price of silver range on the PAPER markets during 2017? Knowing the influence central bankers, politicians, HFT algos, bullion banks and JPMorgan exercise over increasingly managed markets … it is impossible to answer the question, and it is probably the wrong question to ask.

Instead, what do we know with a high degree of certainty?

  1. The U.S. national debt will substantially increase as it has almost every year since 1913. We can trust politicians and central bankers to act in their best interests to spend in excess of their revenues and increase total debt. See chart below.
  2. Politicians and central bankers are unlikely to change a century of their spend, borrow, tax and inflate behaviors.
  3. The price of silver on the paper markets will be volatile but, over the long term, will exponentially increase as it has since 1913.
  4. Silver prices relative to their own history and to the S&P 500 Index are low and far more likely to rise than to fall further. See charts below.

CONCLUSIONS:

 

  • Silver prices will, like the national debt, consumer prices and currency in circulation, increase. The inevitable long-term direction of silver prices is upward. 
  • Silver prices are currently low by many measures so the probable move higher should be substantial. Risk of lower prices is small.

What analysis supports these conclusions?

National Debt:

Plot the official national debt on a log scale every four years – presidential election years. The exponential increase (about 9% per year – every year) is unmistakable. Doubling debt approximately every eight years is not a winning strategy for the U.S. economy. Take cover!

Population Adjusted National Debt:

Yes, the official national debt, even adjusted for population growth, has increased exponentially for 100 years. Expect it to rise further and probably more rapidly as baby-boomers retire, uncontrolled Medicare costs skyrocket, and politicians aggressively spend with borrowed currency.

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Gary Christenson

Gary Christenson is the owner and writer for the popular and contrarian investment site Deviant Investor and the author of several books, including “Fort Knox Down!” and “Gold Value and Gold Prices 1971 – 2021.” He is a retired accountant and business manager with 30 years of experience studying markets, investing, and trading. He writes about investing, gold, silver, the economy, and central banking. His articles are published on Deviant Investor as well as other popular sites such as 321gold.com, peakprosperity.com, goldseek.com, dollarcollapse.com, brotherjohnf.com, and many others. Many years ago he did graduate work in physics (all but dissertation), so he strongly believes in analysis, objective facts, and rational decisions based on hard data.