Silver Again (3/19/08)
The following is a quoted source from Chris Weber and he says about silver:
"Silver has been one of the world's best investments since those days of last August, when the crisis in the various bank credit derivatives started to blow up... I think we're going to see the silver price advance until it meets resistance at the $25-$27 area. I'll be very interested to see how it handles this battle.
If it can clearly better it, then the next target would be the old 1980 highs of roughly $50. But $50 in 1980 would not be the same as $50 in 2008, or in 2010, or whenever this finally happens. In 2007 dollars, what cost $50 in 1980 would have to cost $141 just to adjust to inflation. And the way prices have been rising since 2007, it is a fair bet that they'd have to be over $150 in terms of a 2008 dollar, or over $165 for a 2009 dollar, or $180 circa 2010.
If you'd told people three or four years ago that gold would break through its previous high of $850 without hardly a pause and then bust through $1,000, they would have looked at you like you were stark raving mad. But it's a bull market in commodities. The Fed has no choice but to run the printing presses night and day, and more and more of our nation's creditors will see this as a virtual default and will begin to flee into sounder money – gold and silver. I have no doubt silver will reach its previous high of $50... and sooner than most people think.
It's ironic that the financial newsltters are finally printing what I have been saying for a long time. Maybe a temporary top will start soon because once the press starts to talk aboout silver, this maybe near a top.
Re-read my earlier blog in this week on 3/16/08.
