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Silver at $140: can it really happen

Commentaries & Views

  1. While most of the Corona news is “baked” into the gold price, when the dust settles, $2000-$2500 is likely to be the new floor.

  2. The $1000 floor for gold took time to establish and the process involved significant pain for gold price enthusiasts.

  3. Double-click to enlarge this short-term gold chart. 

  4. Establishing a $2000 floor should create only minor investor discomfort… and many miners will continue to soar higher during the process!

  5. Gold rallied through the minor high near $1988 and is now likely to push through $2000 and challenge the minor high at $2025.

  6. It’s not just the US creep state (government and central bank) that is recklessly borrowing and printing vast amounts of fiat money.

  7. The Indian creep state refuses to cut the gold import tax but is always happy to borrow more fiat in the name of the taxpayers. 

  8. Ominously, they are starting to mimic the madmen of the West and print it maniacally too.

  9. They call their debt ramp-up a “stimulus” for the mangled economy, but the debt will be permanent and serve as a platform for higher inflation.

  10. Speaking of inflation. Warren Buffett recently bought into Barrick, and now he’s buying key Japanese stocks… in what appears to be another move to benefit from rising inflation.

  11. Banks can generate good profits in an inflationary environment, but only if rates go higher. 

  12. That doesn’t look likely because the debt-obsessed US government could implode if rates rose even modestly.

  13. Warren likely senses something is different from the 1970s with this potential inflationary wave, so he’s wisely shunning banks and embracing commodity stocks.

  14. Double-click to enlarge my dollar versus yen aimless drift chart.

  15. Decades ago, the USDX was an important tool for gold analysts, and then it was dollar-yen that mattered.  Now, almost all governments are borrowing and printing in a similar (and arguably criminal) manner. 

  16. I’ve predicted that the yen would lose its safe-haven status.  That’s happening now; gold is rising against the dollar while the yen goes nowhere against it.

  17.   The most important chart for gold investors is now their home currency fiat versus gold chart. 

  18. That’s because the world’s major fiat currencies have become macabre debt-oriented jokes.  Governments are doing almost nothing but bragging about how they can borrow and print even more of this fiat “funny money”. 

  19. The bottom line: Government debt worship is dangerous, disgusting, and great news for gold!

  20. Double-click to enlarge this magnificent GDX chart.  A possible breakout from a beautiful symmetrical triangle is in play, with a $50 price target.

  21. Momentum players should get positioned on any further upside action and all investors should watch the $44 minor high. 

  22. It can be argued from an Edwards & Magee chart analysis perspective… that a move above that price officially reinvigorates the uptrend.

  23. As expected, silver burst upside from the inverse head and shoulders bottom I highlighted on this chart… and now looks ready to test this year’s highs.

  24. Silver is a “must own” asset in an inflationary environment.  Using both 1970s inflation and Fibonacci analysis, it’s my contention that if inflation surges as gold moves towards $3000, silver could rally to about $140.  That’s a gold to silver ratio of about 20:1, akin to what was achieved at the peak of the action in 1980!

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.