Silver—Golden Opportunity

The comments below are an edited and abridged synopsis of an article by Egon von Greyerz

There is one spectacular investment opportunity today that almost no one talks about. It represents less than 0.1% of global financial assets. This investment has a potential upside of 36x, or 3,500%. The downside is limited, since supply is finite and demand strong. It is selling at around production cost, and has a real intrinsic value. It has also been money for thousands of years.

Silver—Golden Opportunity | BullionBuzz
Cast silver bars against the background of the rough texture coarse cloth. Selective focus.

We are talking about silver, one of the most undervalued investments that you can buy today. Since the top in 2011 at $50, silver went as low as $14 in 2015. But we must remember that silver was $4 in 2002. Many investors have been burned by silver, buying high and selling low. Some investors bought at $50, as they expected a breakout above the 1980 high at $50. A fall of up to 70% since then has hurt, but fortunately all silver investors will be amply rewarded in coming years, whatever their buying price was.

If you hold silver today, or if you intend to buy, you are now at a point when an investment is likely to make spectacular gains for several years. At some point, probably this year, silver will move up several dollars in a day or two, and later tens of dollars. Over the next five years, silver could exceed $500.

Up for discussion: Who a silver investment is not suitable for; the gold:silver ratio is key; when gold reaches $2,000, silver could be $66; the long-term target for gold is $10,000 and for silver $666; silver paper shorts (one year’s production); Swiss refiners report weak physical demand; the gold paper market still rules; and gold is for wealth preservation, not for price gains.

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