Quote – Silver prices to double?
News
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Posted 12/05/2014
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3643
“The demand for silver coins in the first four months of 2013 and 2014 was greater than it was in 2011 and 2012. 2011 was the year silver prices were reaching $50.00 an ounce. In 2012, silver prices were relatively flat. In 2013 and this year, as silver prices declined, we saw more buying of silver coins; silver prices are bringing more buyers.
On the supply side, there are constraints in the silver market. As silver prices have fallen, producers that have higher costs pull back on mining and exploration.
With that said, according to the U.S. Geological Survey (USGS), in December of 2013, U.S. silver mines production declined more than 13% from the same period a year ago. U.S. mines produced 87,800 kilograms (Kg) of silver last December compared to 101,000 Kg in December 2012.
I am as bullish on silver as I am bullish on gold bullion.
In fact, for silver prices to rise 100% from their current level, they will need to hit $38.00 an ounce - a level not strange to the metal (it's been there before). For gold prices to double, gold prices will need to hit $2,600 an ounce, a level gold has never seen...yet.
In my opinion, the recent pullback in silver prices is creating an opportunity for bottom-fishing investors...”
Michael Lombardi – Wall Street Sector Selector