It’s really nice to see silver and gold prices going up steadily of late. Will they continue? No one knows, but an article in Bloomberg might give us a hint. Remember, silver is used in a variety of items currently popular, such as solar cells, computer touch screens, medicine, and of course jewelry. Industry is using most of the 26,000 tons of silver expected to be produced this year, and furthermore, for the last six years, consumption has out-paced production.
Obviously, if more silver is being consumed than is being mined and produced, any third grader would realize that prices have to go up. Go up, because of the old market system, which says that shortages cause prices to go up, and when more is being produced than is wanted or needed, as in oil currently, prices will go down. Silver in late October was $14, and Friday, 2/1, it was over $16.50. Both gold and silver have gone up, but the ratio between the two has changed a bit, meaning that silver has gone up a bit further than gold, percentage wise. Silver gained 9.1% in December, which was its largest gain in two years. The Bloomberg piece says that $17.50 silver is highly likely in 2019.
“The metal’s high conductivity to electricity and heat, along with its sensitivity to light and anti-bacterial qualities, contributes to literally hundreds of products,” says Bloomberg. “There’s been a sea change in investor sentiment that obviously drives precious metals, and silver takes its ques from there.” – Toronto based Sprott asset management.
No one knows what the future brings in any field, and this includes silver and gold. However history, for the last 2,000 years, has been steady in what has happened to America and world powers since the beginning of history, and that is governments always over-spend to get votes for the politicos, and this, in 100% of the time, makes physical things go up in price, as un-backed currencies go down in value by printing presses turning them out unceasingly…till their value is zero. The dollar has already lost about 95% of its value in the last hundred years. The previous hundred years before, saw little to no inflation, because the dollar was backed by gold, and coinage was silver. Notice that paper money was backed by real money then. History has also shown that no nation has ever been able to stop the process and reverse it, and unfortunately, this includes Donald Trump’s administration.
Save in dollars, which are losing 2% a year in value, according the U.S. government’s own figures and with their approval, but probably a lot more? Not me. I’ve never had a savings account anyway, because I always spent and invested my dollars in hotels, ice cream parlours, restaurants, and theatres. I began to see the light about 40 years ago, and began to acquire gold and silver. Now that I am retired, I sell a bit now and then, but have plenty for my lifetime with some left, and I think that’s the way it ought to be. You decide for yourself. Don Stott -1-888-786-8822 or don@coloradogold.com