With the Saudis releasing much more oil and with the economy getting worse, and with the global economic slowdown in progress, nothing could sustainably move/keep oil prices above $100 right now. Oil prices are likely heading back to the $70's (and lower for a while) and that will make silver dip to the $teens as most commodities will fall with oil.
It will likely look something like this:
Oil $100 - $105 = Silver $35 - $39
Oil $95 - $99 = Silver $31 - $37
Oil $90 - $94 = Silver $27 - $33
Oil $85 - $89 = Silver $24 - $30
Oil $80 - $84 = Silver $21 - $26
Oil $75 - $79 = Silver $18 - $23
Oil $70 - $74 = Silver $16 - $21
Oil $65 - $69 = Silver $14 - $19
Oil $60 - $65 = Silver $12 - $16
Oil $55 - $59 = Silver $11 - $14
Oil $50 - $55 = Silver $10 - $13
Oil $40 - $50 = Silver $9 - $12
Oil $30 - $40 = Silver $8 - $10
I'm not bashing silver. I love silver (have done so for over 40 years). I'm just trying to be smart about it. It's smart to buy silver on the BIG dips, the coming BIG dip will take us to the low $20's and $teens. I don't think oil will go lower than $55 and I don't think silver will go much lower than $12-$14.
It could look something like this forward looking view of silver (long term bullish even though we've got more huge crashes coming soon)
Looks like we need to lower the silver ceiling to $34.XX since $35 seems to be out of the running now. Maybe we'll wait just a little longer to make an official announcement.
We might as well say goodbye to the $35's now while we have a chance.
>The consumer is poor and has little or no "money supply" to support high commodity prices.>
Banks, corporations and countries like china have it by the billions and TRILLIONS. the consumer needn't buy an ounce.
"Banks, corporations and countries like china have it by the billions and TRILLIONS. the consumer needn't buy an ounce."
They don't want or need it. Certainly China can't afford anything unless it comes through the US consumer. The US consumer is still king of the world. Poor US consumer = poor China (for now).
Why can't silver go much higher?
Because it won't go higher unless oil goes higher, and oil can't go higher because higher oil will kill the economy even faster, causing an even deeper commodities sell-off.
Any bad, but "better-than-expected" economic news that we get (like the bad retail news we got today that was promoted as "better than expected"), just emboldens the commodity speculators to push oil/commodities higher and that just makes the economic situation worse and that kills commodity demand and makes commodities fall.
So we're stuck until the speculators finally give in and sell-off commodities down to economically sustainable price levels.....
We need oil in the $60's - $70's to get the economy restarted and that puts silver in the $teens.