I think everyone accepts that the price gains in PM after 2008/09 were caused by QE. In my opinion the reason it fell again was because the markets believed that the fed would eventually reverse the QE. To some extent the QE also worked, in that the economy improved and there are better investments, in a thriving economy, than PM. Remove the noise, and the bullish proposition for PM now is simple, the previous QE has not been reversed and now there is an even bigger injection added and the economy is definitely not thriving.
I like to recognise the bearish argument: Last time QE's positive effect on the price of PM took a few years to play out. This time financial cycles seem to have accelerated, we have had gains in gold and we are already getting close to the top. We can look through this little upset. Silver is an industrial metal now, and so it wont follow gold anyway.
My view ...on the record: Silver has been stuck in a $10 range since the end of 2014, hitting a high of just over $21 in 2016 and a low of of about $11 in March. That price in March was the lowest since Feb 2009. The $7 price movement from the recent spike low to $17.86 today has been quite steady. If silver can rise another $3.50 it will hit a high it has not seen since 2014. $3.50 seems like a lot, but the March low created a lot of momentum. The economy isn't going to present the alternative investments that a thriving economy would. Gold looks set to make new highs and should pull silver along. There is likely more QE on the way and the private buying of bullion silver seems to have noticeably picked up. Just my 2 cents worth. Silver has a lot of shrills, but I reckon we are almost at the time on the broken clock, things look different to almost any time in the last 6 years to me.
I like to recognise the bearish argument: Last time QE's positive effect on the price of PM took a few years to play out. This time financial cycles seem to have accelerated, we have had gains in gold and we are already getting close to the top. We can look through this little upset. Silver is an industrial metal now, and so it wont follow gold anyway.
My view ...on the record: Silver has been stuck in a $10 range since the end of 2014, hitting a high of just over $21 in 2016 and a low of of about $11 in March. That price in March was the lowest since Feb 2009. The $7 price movement from the recent spike low to $17.86 today has been quite steady. If silver can rise another $3.50 it will hit a high it has not seen since 2014. $3.50 seems like a lot, but the March low created a lot of momentum. The economy isn't going to present the alternative investments that a thriving economy would. Gold looks set to make new highs and should pull silver along. There is likely more QE on the way and the private buying of bullion silver seems to have noticeably picked up. Just my 2 cents worth. Silver has a lot of shrills, but I reckon we are almost at the time on the broken clock, things look different to almost any time in the last 6 years to me.
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