Due to Rising Demand, Silver Could Eclipse $100 Per Ounce

LOS ANGELES, June 9, 2017 /PRNewswire/ -- Famed money manager Stephen Leeb created waves in the financial media when he told King World News that the spot price of silver could soon eclipse $100 per ounce.

For the spot price of silver to climb past a $100 threshold, it would have to appreciate more than 450%. Yet, Leeb not only thinks it's possible, but he says it's only a matter of time until China pushes drive silver to $100. Other analysts agree with Leeb, arguing that silver is on the verge of a new "super cycle."

Demand for physical silver could spike in the world's most populous countries. The Chinese middle class—itself larger than any other country in the world except India—demands jewelry, electronics, infrastructure, and energy independence. Each of these things require silver.

"There is massive demand for photovoltaics in Japan and China," Leeb said in his King World News interview. "There is also massive demand for silver in the Middle East for this type of energy infrastructure."

There are other reasons why silver prices could go much, much higher than they were in early June 2017.

• For years now, investment experts and silver bugs sounded the alarm that silver costs too much to mine and that the lack of mining profitability would mean much higher future prices.
• According to the Silver Institute, global silver production declined in 2016 and should again in 2017. Silver mine production may have peaked in 2015, which means less supply and upward pressure on prices.
• The gold to silver price ratio is out of proportion compared to historical norms. Silver used to trade around 15:1 or 20:1 for gold. Now, the gold to silver ratio hovers around 70:1 or even 80:1. By this standard, silver may be magnificently undervalued.
• Potential for U.S. political fallout—specifically surrounding President Donald Trump's unpredictability and the uncertain future of his administrative agenda—could drive all commodity prices higher.
• U.S. and Chinese fiscal and monetary policies may bankrupt their countries and create spiraling inflation. This could encourage speculative flows into silver bullion.
• Physical silver demand remains strong in 2017, especially among retail investors. The U.S. Mint reported that it sold out of the Federal Douglas silver coin, and demand for the American Silver Eagle coin saw huge spikes between April 2017 and June 2017. Demand for silver bullion including bars and coins in 2015 to 2016 reached a 21st century high, surpassing the post Great Recession boom.

Gold remains the most popular precious metal for commodity investing, both in the United States and internationally. Silver is the second most popular investment metal, and is particularly popular for Self-Directed IRA inclusion.

You can own real, physical silver bullion and store it in a tax-advantaged retirement vehicle. American Bullion can discuss your options and help you every step of the way.

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