Big picture:
I have been following the big picture since about 2010
What they do is called kicking the can down the road to what is inevitable
The paper contract market that has suppressed the price for 40+ years is no longer in control
One silver paper contract controls 5000 ounces of silver
They have more paper contracts then there is silver
This is the game they have used to suppress the prices for many years.
The physical metal market is now in control
Shanghai is a physical metals market not a paper market and their current pricing is $10 more than the US paper market
Traders have been demanding physical delivery of their paper contracts instead of rolling them over
There is a fraction of physical silver available and they cannot deliver the metal to all of these contract holders
Governments, central banks have been accumulating Gold for several years in huge volumes
The word on the street is that some form of Gold backing will return at some point
Gold is now a tier one asset that banks can hold
You can throw silver into the equation also as poor man gold
The dollar as a world currency has been diminishing
BRICS has bypassed the dollar for international transactions
All FIAT currencies eventually go to zero and that is what the dollar is
Add the huge US debt of 38 trillion dollars that can never be repaid
You dollar decreases in value every day
They print money out of thin air and inflate the currency supply thus reducing it's value
China just stopped all exports of it's silver except for a government approved transaction
Silver is in huge demand in manufacturing.
Solar panels, electronics and the US military all need large quantities of silver
Manufacturers will buy at whatever price, they cannot shut down their factories
Silver mining has been on the decline for years because of the low price
It takes years to develop a new mine or restart production on existing mines
Silver is mostly a by product from other mines
Take all of this and a lack of supply and you have the basics of supply and demand crisis
The run up of silver is not based on speculation as it was in the hunt brothers and in 2011
It is now based on fundamentals
The Gold to Silver ratio was 100 to 1 last year
It is now 50 to 1
In the past it has been more like 15 to 1
So Silver is still way behind in it's true value
Big banks and others have predicted that we will see $200 silver this year
Gold is now $5k but will be going way higher
It may end up at 10k this year.
The market is in the process of price discovery which is how a market is supposed to work
The thinking is that they may revalue Gold in order to eliminate the 38 trillion debt
Who knows what the final price will be?
So Silver has two factors.
It is used in manufacturing and it is a precious metal
Gold is purely a precious metal and a store of value and has been money for 5000 years plus
When Nixon got rid of Gold backing the US dollar, it let them print as much money as they wanted to
And now we are seeing the end game, but who knows how long they can continue to kick the can down the road.
To answer your question, no one knows how high Gold and Silver will go, but they are not done yet.
We may see a correction at some point from profit taking and a big dip as a buying opportunity
Or as we are seeing right now, it may just keep rocketing up as the market is now in the drivers seat.
The price you see me quoting here is the paper market price, not the real world price
For example, silver is $103 and ounce this morning but you cannot buy a ounce of silver for $103
SD Bullion's price for a Silver eagle is $114 this morning
https://sdbullion.com/silver/us-mint-american-silver-eagle-coins/silver-american-eagles-1-ounceIf you can find real silver rounds or bars at a decent price, I would grab them
That is the problem, many dealers just don't have the silver and if they can get it, they may say that delivery will be months away.
But beware of fake Chinese silver rounds
There are apps for your phone where you can ping a silver round and it will ring at a specific frequency that the fake rounds cannot.
All of this boils down the fact that Gold and Silver are stores of value against FIAT currencies as they all go to zero
