The Lone Ranger is a western TV series dating back over 80 years. It was remade as a feature film recently in 2013. It features a white stallion known as Silver. The horse was known to have been one of the fastest in the wild west once it got moving - an analogy to the physical commodity silver, the fastest moving commodity once it gets momentum. We want to focus on silver this weekend for its upside potential when it finally starts to move as we expect it to shortly. There are very few asset classes that can keep up with the momentum of silver once it breaks out of multi-year trading ranges.
From 2010-2011, silver nearly tripled in value based on money printing and inflation fears stemming from the great recession of 2007-2009. We have a similar set of circumstances developing today from the Covid-related stimulus. Throw in the global debt bomb and currency crisis and we have the potential for 2010-2011 on steroids.
Silver has accrued demand for decades as an industrial metal, which is likely to increase even more as new technologies come to rely upon it into the next decade. Nano-technologies, robotics, semi-conductors and human sciences all heavily rely upon silver. For 5,000 years, silver has also been a monetary metal and physical store of wealth. We feel silver is set to grow not only based on industrial use, but based on a monetary one as well. First, many European governments are starting to restrict gold purchases and discourage cash hoarding outside of the presently failing monetary systems. The price of gold is set to soar to a minimum of $5,000 an ounce in the coming years which will put the metal out of reach for many average citizens. Look for the people of the world to buy silver, often dubbed the 'poor man's gold' to help protect their wealth in the coming years.
Silver is a heavily dominated and to some degree controlled commodity traded by several large Wall Street banks. These banks own millions of ounces of physical silver in their vaults, but maintain a short position in the “fake” paper silver future markets. They print profits month to month in this thinly traded paper market. However, when periods of extreme demand in the metals market occurs, these large banks must stand aside to some degree and let natural market forces price the metal. We are entering one of these periods now from 2020-2024. It is hard to pinpoint the exact day the metal will break-out over $20 but expect it to be sudden and forceful. You will get an explosive move upwards and through the $20 level and not much real resistance until the $27 level. We feel over the next 60 days silver will breakout. A major cycle top is projected into May of 2021. This should be noted for any investors attempting to use leverage.
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