Silver is Unlikely to Crash in 2011 – to Reach 400 an Ounce by 2015
The risk of another “Great Depression” is real and many analysts believe the crisis will escalate late in 2011. This will lead to continued safe haven demand for gold and silver which should see gold and silver once again perform well throughout 2011.
The growing threat of inflation due to significant increases in commodity prices will also support “Gold” and “Silver” from 2011-2015.
Predictions of higher silver prices in 2011 and continuing into 2015 came overnight as Standard Bank Plc said that they see silver climbing higher due to new applications and increased industrial demand.
James Turk of Gold Money said that he believed silver would reach over $400/oz in 2015. Turk believes that this price will be reached due to massive investment demand in silver due to a possible crash in the dollar and the emergence of inflation and potentially “Hyperinflation” starting in late 2011. Turk also believes that the massive concentrated short positions on the Comex held by JP Morgan as alleged by GATA and Ted Butler will propel silver prices higher in a huge short squeeze.
Why silver is in a bull market and what is the highest price prediction?
In recent years, gold and silver have outperformed equities and real estate. Due to the very bullish fundamentals, this trend is set to continue in the coming months. The forecast for silver prices in 2011 and into 2015 is based on:
– the increasing global macroeconomic, currency and geopolitical risks
– silver historic role as money and a store of value
– the ever declining and very small remaining silver deposits
– significant industrial demand
– significant and growing investment demand
Silver today is used more than ever in traditional applications such as mirrors, batteries, medical devices and electrical appliances as well as more recent ones like cell phones, flat-screen televisions, laptops and other modern high tech devices. Increasingly, silver antimicrobial and antibacterial qualities are being used in many types of medical applications.
While playing an armchair speculator here, I’ll hazard a guess that we will see a major “Silver Correction” sooner rather than later – if only to even out both sides of the trade. When you see 90% + silver bulls for months on end, something has to give, as eventually you are going to run out of new people to go long on the buy side but this may not occur until 2015.