Silver Prices: Can They Reach $50?

Here at The Gold Enthusiast  we stay pretty much focused on gold.  That leads to a certain amount of emails asking why I don’t cover silver prices, too.  Well, if we did that we’d have to find a Silver Enthusiast… not that that would be terribly difficult.  

With gold bumping along its bottom, it’s not a bad time to look around and see what other precious metals are doing, so today we’ll look at silver. Rather than starting off with technicals, we’ll go the other way and start with the theorists.  Theodore Butler at published an article yesterday detailing why silver could run to $50/oz again, and in the not-so-distant future.  

You may recall silver has run up toward the magical 50 number twice, once in the 80’s thanks to the Hunt brothers manipulations, and then in 2011 in the aftermath of the last big market crash.  Today, Butler argues, there is much less silver around while demand for silver has gone up, thanks to more uses in modern electronics and manufacturing.  

So why are silver prices so low? You’ll have to read Butler’s article to find out.  Does this Gold Enthusiast think silver will go to 50 soon?  No, but we can’t rule out the eventuality, as we watch prices for candy bars that used to be 10 cents hit $1 and small cars not any bigger than VW Bugs pass $20k base price.

 Related: Here’s How China Manipulates the Gold Market. 

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated with a business degree, then worked with Macy's. After Macy's he spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined a well-known financial planning firm as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where he worked first for a small manufacturing consulting company, then a major university. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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