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Future Silver Prices - How High Will Silver Go?

July 10, 2012 | Comments: 0 | Views: 312

Over the last few years, there has been a huge amount of interest in the precious-metals sector, as many weary investors have looked for somewhere safe to place their money. Both gold and silver have increased sharply in value over this period, with gold having risen to levels that many investors now seem unable to reach. Silver on the other hand is a lot cheaper, making it a more viable option for many investors. And although silver has risen sharply alongside gold, many precious-metal investors are now speculating that the white metal may still have some way to go.

Can Silver Reach $800 Dollars?

In the early 1930s, silver was at a low of around 25 cents an ounce. It was difficult to trade, and near impossible to buy between 1934 and 1963 because of a government imposed trading ban on the metal. But by the early 1980s, silver had reached a high of around $50 dollars an ounce. In just under 50 years, silver had risen around 200 times in value. Based on the bull market that started in the 1930s, and that lasted through to the early 1980s, and taking about ten years ago when silver was last at its market bottom of around $4 dollars, silver would need to rise to around $800 dollars to equal its last bull market.

Can Silver Reach $2500 Dollars?

The monetary base back in the early 1980s was estimated to be at around $140 billion dollars (according to government information) when extracted silver for the same period was estimated to be at around three billion ounces. Taking silver's old high of the early 1980s which was around $50 dollars, and comparing it with the two trillion dollar monetary base of today, silver would need to rise to around $2500 dollars to equal that of the monetary base back in the early 1980s. These figures are based on the philosophy that the amount of extracted silver that exists today for investment, is far less than that what existed back in the early 1980s.

Can Silver Reach $4500 Dollars or More?

Although silver is a precious-metal, is has always played second fiddle to that of gold, where gold has always been (and still is) sought after by central banks, sovereign wealth funds, pension funds and investors alike. Silver has never really been taken seriously, although when certain elements of the market are analyzed, the white metal may have a lot better future than gold.

Over the years, unlike gold much of the extracted silver that has existed for investment purposes does not exist anymore. Due to silver's highly appealing uses within the industrial sector, a large majority of the white metal has been used up in disposable products like computers, mobile phones, televisions and batteries etc. Silver has also been used for many years within the car industries and machinery industries.

Taking into account that probably around 95% of the previously extracted silver does not exist anymore, due to being discarded over the years along with the disposable electronics that regularly get thrown away, and the rising costs of extracting the remaining amount of discovered silver. It would now not be unreasonable to think, that silver has even a little higher to go than previous thought.

If the US dollar was to collapse, which it could easily do, due to the increasing burden of an out of control national debt that now hovers around the 14 trillion dollar mark, together with an increasing amount of weekly runs on the printing presses that are devaluing the dollar everyday. Then the now reserve currency of the world, would have very little appeal to it.

It could be concluded, that gold would become almost impossible to obtain, as the present diminishing supplies would be quickly snapped up by governments around the world. At the same time a total trading ban could easily be reintroduced on the metal. This would leave silver to be a viable investment option. When considering the present-day turmoil, and remembering that during the 1930s silver bull run the dollar actually lost almost 70% of its value, the price of silver could easily reach new highs that have never been seen before!

Philip Albert Edmonds-Hunt is from the County of Oxfordshire in the United Kingdom. He has travelled most of Europe, and he has lived in Spain on more than one occasion. Philip has also travelled much of the USA and now lives and works as a Freelance Writer and English Teacher in Mexico. He is the owner of "The Oxford Quill," a small but reliable business offering a range of services such as, "Professional Article Writing, Proofreading, and Website Design." Philip's business also offers an extensive selection of professionally written e-books. If you are interested in finding out more about how to invest in silver, check out:

Source: EzineArticles
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