National Debt Too High…Silver Price Too Low
The comments above & below is an edited and abridged synopsis of an article by Gary Christensen
Silver is currently around $16, which would be sensible if the US national debt was much less than its current $20 trillion. Given the massive national debt and 100 years of experience, the silver price could easily be double or triple its current price, and far higher in a panic.
Official debt in 1913 was $3 billion. Since then it has risen 8% to 9% every year to reach $20 trillion, or $20,000 billion. Debt will continue rising as long as politicians spend and bankers lend.
The silver price has increased, but more slowly than national debt, as dollars have been devalued for over a century.
Silver, after the 1980 bubble and crash, has increased erratically since the low of $3.51 in 1993. The exponential trend line indicates that the silver price in mid-2017 is well below its long-term trend. The daily silver price exceeded $48 in April 2011 before crashing back to $13.60 in late 2015.
As for ratios, multiply the average annual silver price by one trillion and divide by the ever-increasing national debt. For the past 30 years the ratio has ranged between 0.7 and 2.9. It is currently at about 0.8. Sooner or later, silver will rally substantially and force the ratio higher.
In summary, politicians spend and bankers lend. Debt increases, total dollars in circulation increase and they purchase less. Prices for stocks, commodities, food, energy, gold, silver, beer and more all rise.
Silver has risen erratically but inevitably, along with debt and most consumer prices, for decades. As of July 2017 the silver price, compared to the national debt, is too low and will rise.
The next rally in silver should be huge based on the prospects for expanded war, financial chaos, and central bank printing that will devalue all currencies.
Christenson predicts that silver will sell for $100 per ounce, citing price increases for Amazon ($6 to $1,000 in 16 years), Bitcoin, and others. Silver at $100 (and higher) seems likely within a few years.