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Silver and gold have always held a close relationship with each various other, with silver generally exceeding gold in booming market, as it did this year.
Presuming a $4,000 gold cost target in 2 to 3 years' time, which is about a 100% increase from present levels, as well as thinking a normalization of the gold-silver ratio to 40-1, after that silver must be trading at $100 by the time gold increases in value, stated David Morgan of TheMorganReport.com.
" The last time we had that run in silver in 2011, we'll look at something comparable, so during that time it reached concerning 33 to 1, so if we $4,000 gold and we use a ratio of 40 to 1, that says $100 silver. Is that impossible? I do not assume so. I really anticipated that rate back in 2003 when silver was under $5, so I assume we'll see that," Morgan claimed. "I'm not stating following year, but we'll see that."
0:00 – What's been holding silver back?
4:34 – Silver as well as inflation
6:45 – Silver's correlation to gold
8:11 – Timeline for $100 silver
9:18 – The "reasonable" gold-silver proportion
11:51 – Silver's efficiency in economic downturns
13:49 – Monetary plan vs commercial demand on silver
16:14 – Dangers to industrial need
17:45 – Supply as well as need
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$100 silver price: when and why we will see it – David Morgan
Gold and silver have always held a close correlation with each other, with silver usually outperforming gold in bull markets, as it did this year.
Assuming a $4,000 gold price target in two to three years’ time, which is roughly a 100% increase from current levels, and assuming a normalization of the gold-silver ratio to 40-1, then silver should be trading at $100 by the time gold doubles in value, said David Morgan of TheMorganReport.com.
“The last time we had that run in silver in 2011, we’ll look at something similar, so at that time it got to about 33 to 1, so if we $4,000 gold and we use a ratio of 40 to 1, that says $100 silver. Is that out of the question? I don’t think so. I actually forecasted that price back in 2003 when silver was under $5, so I think we’ll see that,” Morgan said. “I’m not saying next year, but we’ll see that.”
0:00 - What's been holding silver back?
4:34 - Silver and inflation
6:45 - Silver's correlation to gold
8:11 - Timeline for $100 silver
9:18 - The "fair" gold-silver ratio
11:51 - Silver's performance in recessions
13:49 - Monetary policy vs industrial demand on silver
16:14 - Risks to industrial demand
17:45 - Supply and demand
__________________________________________________________________
Kitco News is the world’s #1 source of metals market information. Our videos feature interviews with prominent industry figures to bring you market-affecting insights, with the goal of helping people make informed investment decisions.
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