Monday, August 30, 2010

Guess when silver prices will explode.

Many analysts and investors try to guess when silver prices will explode. They make these guesses based on the charts, or even by the fundamentals like I do. I pointed out the fundamental supply and demand numbers in my last article, "1% of 1%".

The Tiny Silver Market attracts 1% of 1%, or $1 out of every $10,000 in the US Banking system, each year.

By the time 1% of paper money tries to buy silver in one year, there will be 100 times as much investor buying of silver as today, which will be about $180 billion trying to buy only 750 million ounces of annual world production, which implies a silver price of about $240/oz., or perhaps higher.

The silver fundamentals are so great, and the silver market is so small, that at any time, the silver price can double, up from about $18-19/oz. now, to about $40/oz.

Rusty Kane
Jeweller.