Many people are thinking silver has been over sold even more than gold and it is either at or very near the bottom. The next resistance point is coincidentally the most radical number of any precious metals analysts, including Warburg and Bank of America, which have been spot on. They see some room for silver to fade into the 17’s before year’s end, but almost all see much brighter numbers in 2014 for metals. As metals go, silver is a pretty safe bet right now, it’s taken a huge hit that leaves it with plenty of upside potential and very little downside. This sort of play falls into the category of “You can’t get hurt falling out of a basement window. Consider this a big hint to take a look at silver!”
Posted by Jack
Excerpted from an article by Sid Klein (Seeking Alpha)…”
The shortage of gold is a joke, but the pricing of silver is the most psychologically deranged of most anything that I have ever seen.
In ignoring the facts about what will cause (has caused?) the great gold shortage, there is utter denial regarding the silver pricing model.
The market is in denial due to the near-sighted wish to restrain precious metals prices. However, as in all cases of depressed or manic extremes, basic facts and value are ignored.
While the preceding link includes critical commentary regarding the silver shortage (latter half of article), the link below offers another example of how this planet of 8 billion can virtually cause this increasingly precious metal to nearly disappear altogether.
We’ve heard it before. All the world’s gold ever mined still exists, but silver gets used. And, of course, silver is a much tinier market.
So we consider all the new applications again, such as solar panels and auto instrumentation, etc., but does health push it over the top, or, before that (chronologically-speaking), is it India?
I have often wondered what the effect on the tiny silver market would be if (when) even a very small fraction of what comes out of bonds and/or stocks were to (will) go into the metal.”
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