The Next Silver Run to $50 (And Beyond)

The comments below are an edited and abridged synopsis of an article by Theodore Butler

The silver price has twice risen to $50 (1980 and 2011), and it could happen again. There was 3 times the amount of above ground silver in 1980 as there is today. The amount of global money creation and buying power has increased exponentially over the past 7 years. There is less than a third of world silver available today than there was in 1980, while the price has remained far below the peak it reached then.

There is no minimizing the powerful dynamics in place for the next move higher in silver. That move should extend beyond $50, and unfold more quickly than the previous big moves. The principle dynamic will be the role of JPMorgan. Over the past 10 years, JPM has been the dominant futures (paper) short seller on the COMEX, becoming so powerful that it has compiled a perfect trading record, never taking a loss and amassing billions of dollars of trading profits. This pales in comparison to what JPM has been able to accomplish in the physical market, accumulating 750 million ounces of physical silver and 20 million ounces of physical gold.

Butler discusses JPM’s history of gold and silver purchases, and the COMEX’s role. All it will take for a price explosion is for JPM not to add aggressively to short positions when the inevitable rally begins. The silver price will explode, along with a commensurate move in gold, if JPM does nothing on the next rally.