Silver may hit record highs in the next 10 years: CPM Group
Silver prices may rise to record highs within the next 10 years, according to CPM Group’s Silver Long-Term Outlook report released Thursday.
In the latter half of the next 10 years, investors are expected to approach the silver market “more positively as economic conditions improve relative to the first half of the projected period,” CPM Group said. “Investors are expected to step up their purchases, backed by expectations for strong capital appreciation amid rising industrial demand for the metal.”
And “in this scenario, silver prices could rise rapidly, possibly touching fresh record highs within the next ten years,” it said.
This is a cover-your#$%$ story if I ever saw one. CPM Group is more than aware of the tight physical supplies in the silver market. Just based on the b.s. U.S. inflation rate going back to the old 1980 highs, silver should be selling for north of $150 the ounce. Gold is currently selling for about 55 percent over its old 1980 high, so that should put silver at $75 the ounce just for openers...and we know that gold should be over $2,700 the ounce based on the current rate of inflation. Silver's current spot price is 55 percent less than it was back in 1980 at its old high. Go figure!
The only macro item I can think of right now pulling prices below the previous high is the photo demand removed from the market, but that should be at least partially offset by additional industrial demand. I have lost money thinking PM's should have responded positively to current political conditions, the fed irresponsibility, and increased industrial demand. The markets can remain irrational a bit longer, but not much, as more and more people are seeing current fiscal situation is unsustainable. There is going to be some trigger that communicates the complete mismanagement of our country and the rest of the developed world for that matter and drives folks away from fiat to PM's. I believe prices will rise rapidly for PM stocks and SLW in particular at that time. Till then, we look to political announcement for price over reaction within a trading band and TA to help with our trades.