Silver’s price is tied with inflation much more than gold’s is. In the 1970s, as inflation raged in the United States, silver rose to $50/ounce, having started the decade at under $2. It was a sensational decade for the white metal.
However, in the 1980s and 1990s, as deflationary forces brought interest rates down rapidly, the metal’s price languished. Today, its price is HALF of what it was in 1980!
Obviously, investing in silver is NOT similar to investing in gold, which does enjoy a long-term appreciation under both deflationary and inflationary environments.
The question, then, is whether or not there’s a potentially interesting trade setting up in silver now that it has doubled from its March lows.
The answer depends on inflationary pressures and inflationary expectations.
- We are seeing that the dollar is dramatically weakening, which is the first sign that silver is likely to enjoy momentum.
Here’s the dollar chart as it stands today:
Courtesy: Zerohedge.com
It doesn’t feel like the trend is swinging, either. This seems to be a long-term structural decline. Even the price of oil is back over $50/barrel.
-
-
- Silver’s price has already tested $30 this year and has shown that in the first stages of a recovery, however weak it may be, it can surge by triple-digits.
-
In 2009, for instance, it appreciated from $9 to $49 in two short years.
Again, this is a trade that could be capitalized upon, not a buy-and-hold idea.
-
- The price of silver has directly correlated with the price of oil over the years. With oil surging, this could be a critical bullish catalyst for silver.
In the end, silver is an ideal way of betting on inflation.
93% Of Investors Generate Annual Returns, Which Barely Beat Inflation.
Wealth Education and Investment Principles Are Hidden From Public Database On Purpose!
Build The Knowledge Base To Set Yourself Up For A Wealthy Retirement and Leverage The Relationships We Are Forming With Proven Small-Cap Management Teams To Hit Grand-Slams!
The Federal Reserve has done the heavy lifting for us. It arbitrarily mandated 2% inflation as some magical number. This means that the street will be bracing for inflation if the FED measures it as such.
Therefore, the smartest move is to watch that 2% gauge from Powell and his buddies.
Courtesy: Zerohedge.com
In our world, we’re reaching a point that we call the DEBT LIMIT, which is the moment when deflating the currency supply by simply adding more debt is not productive.
This moment will change how investors view inflation.
Be prepared for it and study the topic thoroughly in the meantime.
Best Regards,
FutureMoneyTrends.com
Governments Have Amassed ungodly Debt Piles and Have Promised Retirees Unreasonable Amounts of Entitlements, Not In Line with Income Tax Collections. The House of Cards Is Set To Be Worse than 2008! Rising Interest Rates Can Topple The Fiat Monetary Structure, Leaving Investors with Less Than Half of Their Equity Intact!
Protect Yourself Now, By Building A Fully-Hedged Financial Fortress!
Disclosure/Disclaimer:
We are not brokers, investment or financial advisers, and you should not rely on the information herein as investment advice. We are a marketing company. If you are seeking personal investment advice, please contact a qualified and registered broker, investment adviser or financial adviser. You should not make any investment decisions based on our communications. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Please do your own research before investing, including reading the companies’ SEC filings, press releases, and risk disclosures. Information contained in this profile was provided by the company, extracted from SEC filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee it.
Please review our entire disclaimer at FutureMoneyTrends.com/disclaimer.
