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I have monitored the price of silver for the last 40 years while engaging in the pursuit of coin collecting. The spot price of silver has always affected coin prices with the exception of when the Hunt Brothers tried to corner the silver market in 1980.
Supply and demand factors have always caused price highs and lows in the silver market. In my opinion, there are events and circumstances currently occurring that are changing the game for silver bullion, which I believe will drive the price of silver to at least $100 an ounce and maybe even more.
I won't supply charts or graphs in my analysis (you can find plenty on the Internet). Instead, I will focus and zero in on what is happening currently, using some common sense.
Most are familiar with the typical uses of silver, which have been consistent for many decades. In no particular order of importance, these include jewelry, electronics, photography, batteries, dental alloys, and many other uses. These must be factored in along with new major expanded uses putting new demands and pressure into the perspective.
Solar panels that utilize silver, water purification processes to combat water shortages, and uses in medicine for a growing world population are some other very important factors in the increasing demand for silver. In addition, emerging markets such as China, India and even Vietnam are all using more silver. And don't forget that the silver used in electronics in the production of computer tablets and smartphones currently result in the use of one billion ounces of silver this year.
Even though these increased uses can cause moderate fluctuations in highs and lows over time, they are not what will cause the price of silver to surge past $100 an ounce. I believe the catalyst that will cause the price of silver to soar will be the runaway inflation caused by our government printing money 24/7 along with the increased world silver demand which is the other important factor never seen before in history.
There is a mentality in Washington on both sides of the aisle that our national debt will never be and can't ever be paid back. The dollar has become play money to the politicians.
We need to consider what would happen if we had a banking crisis whereby the banks close their doors and shut down everyone's debit and credit cards. If that happens, a large-scale panic would inevitably ensue within 48 hours of this event. Does Washington have a backup emergency plan if this happens?
It’s my opinion that everyone should have at least 10% of their savings (nest egg) in silver or gold. But my point is that silver, compared to gold, has the greatest upside price potential by far. It should be priced at least $100 an ounce, in my humble opinion.
What is the best silver vehicle to own and hold in case of a major banking or monetary crisis?
I believe owning United States 90% silver coins, also known as "junk or constitutional silver," in denominations of dimes, quarters and half dollars is a smart way to go.
At least one independent grocery store owner in San Luis Obispo county, California, has gone on record stating that he would accept silver coins as a medium of exchange as payment for groceries. For example, a loaf of bread could be bought for one silver dollar compared to the cost of fifty dollars of devalued United States flat currency.
Let’s hope it never comes to that, but I think it is prudent to be prepared just in case.
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