Certain investors believe that silver will start appreciating at a faster rate than gold. The market is expected to correct the distorted price as silver relates to gold, especially considering the damage rampant silver market manipulation has done to silver’s image as a precious metal. At present, the gold/silver ratio is 45:1, but this is set to change in the not so distant future.
Over the last sixty years, the output of silver has waned for a number of reasons and that is one reason why silver supplies outnumber gold at a ratio of less than 10:1. The closing of silver mines and depleted silver mining inventory have contributed to this too, and that is why a correction is imminent. After the correction, silver is expected to be valued at about ten or fifteen percent the value of gold. When gold is trading at $6200 an ounce, you can bet your last dollar that silver will be around $620 to $930 an ounce.
It is possible that gold will reach $6200 an ounce in a bull run that will end all bull markets. It is claimed that the best predictor of the future is the past, and analysts are making this call based on events that transpired back in the 1970s. At the time, gold went from $35 to $850 an ounce. Experts predict that the current economic climate will see similar behaviour from gold. They predict a bull run that will push the gold price to new heights as an increasing number of investors are flooding into gold in order to hedge their bets against the economy (and fast failing fiat currencies!).
The worsening macroeconomic situation has forced the gold price to rise over the last number of years, and the fundamentals of economics are continuing to deteriorate. Fear will play its part as investors rush to gold and silver as safe havens against the weakening fiat currency system (debt-based currency system). It is becoming increasingly obvious that paper money (non-redeemable paper notes and electronic money) is not safe and that an increasing number of investors are relying on physical silver and physical gold to protect their wealth.
Physical gold and physical silver have stood the test of time and cannot be created by running the printing presses (or electronically!). The politicians are unable to create these two precious metals “out of thin air” so to speak. The worse they can do is to issue mountains of worthless paper silver and paper gold, but smart investors are not fooled by this, because they know if you don’t hold it, you don’t own it. They are not fooled by the “paper gimmick” to any extent; maybe they were fooled at an earlier stage, but not now. The Swiss National Bank confirmed that paper currency (fiat currency) provides no safety when they penned the Swiss Franc to the EUR and printed more Swiss Francs, eating away at the purchase value of Swiss Francs that were already in circulation before the madness started. One only has to look at a brief history of fiat currency in order to understand that it is not real money, but fake money at best, with very little if any intrinsic value.
Just like in 1998 when there was an increase in telecommunications, media and technology, it is anticipated that gold will soar to new heights. However, it is currently in a super cycle and not in a “bubble” as claimed by many. Investors should not make the mistake to think that gold and silver are in a “bubble” at current price levels, especially considering that the majority of people do not own physical gold or physical silver nor do they have the slightest clue pertaining to its true worth or value. How can silver be in a “bubble” when the majority of people don’t know that silver is money or that silver market manipulation is rampant, which places downward pressure on the silver price? At current price levels of around $40 per fine ounce for silver and $1800 per fine ounce for gold, both of these precious metals remain an absolutely steal.