Silver: Train Leaving Station Soon!

Silver: Train Leaving Station Soon! by Gary Christenson – Deviant Investor

Silver prices are rising along the bottom of a 20 year log scale trend channel (shown later). There are no guarantees in a manipulated paper market, such as COMEX silver, but it is possible that silver prices will collapse further, or more likely, move substantially higher, sooner rather than later.

Silver prices COULD fall from their current level of $16 – $17 to under $10. Other events that COULD occur include:

You could win the Powerball Lottery.

The U.S. congress could balance the budget and reduce debt.

The Federal Reserve could apologize for destroying the dollar.

President Putin and Hillary could sing “Kumbaya” together.

The Middle-East could ascend into a century of peace.

And it is possible that silver prices could drop under $10.

But realistically, we know:

 

  1. The Federal Reserve has devalued the dollar for over a century and is openly advocating for at least 2% inflation – more devaluation. Expect continuing declines in the purchasing power of the dollar.
  2. The U.S. congress, the President, the military, thousands of military contractors, the medical/health/sick care system, and millions of people collecting Social Security do NOT want spending decreased. Expect more spending, deficits, ever-increasing debt, and of course, more consumer price inflation. Silver prices will rise.
  3. Silver prices have risen exponentially for the past 90 years as the dollar has been consistently devalued. Expect continued silver price rises. See log scale graph below.

SILVER TO GOLD RATIO:

 

Examine the silver to gold ratio for the past 27 years. Low silver to gold ratios indicate long-term buy zones for silver. Silver prices are there now.

How High Will Silver Prices Rise?

The answer depends upon many variables. A partial list includes:

  1. COMEX silver prices are “managed” by large players, including JPM, which previously have wanted silver prices to remain low. That may be changing. Read Ted Butler.
  2. How rapidly will the Fed and commercial banking increase the supply of dollars and how much will they devalue the dollar?
  3. How extreme will our political circus become? Distractions will be necessary. The usual response is war after a suitable scapegoat has been identified.
  4. “False Flag” operations may direct blame and attention away from policy

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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.