Silver Prices... How High Could They Go - Continued

Technical Analysis

Fairly conservative technicians currently seem to expect $100 to trade after a $50 breach, although a correction to test the base at $50 could then materialize.

Revised CPI Measures: When the price of silver is inflation adjusted from its historic highs using the old CPI measure, people like John Williams have been quoted saying it should be as high as $500 per ounce.

Using Money Supply: Given the rapid expansion of the money supply since the gold standard was most recently abandoned in 1971, which has accelerated even further after the 2008 financial crisis, analysts like James Rickards have pointed out that a price of $7,000 to $10,000 for an ounce of gold would make more sense. Using the historically reasonable 20 to 1 price ratio, this analysis would put the price of silver in the $350 to $500 per ounce range.

Alternatives to Paper Money: Gold and especially silver may not achieve official currency status any time soon, but they are the best candidates for unofficial non-fiat money that investors can readily purchase.

Financial Repression: Current monetary policy continues with low interest rates, captured bond buyers and real (as of yet absent) growth priced in forced legal tender.

Hyperinflation to Quadrillions of Dollars per Ounce

Un-backed fiat currency money printing is running rampant under the flimsy guise of quantitative easing. Silver investors have all heard quadrillions associated with derivatives for a few years now. The BIS changed their calculation in 2009, making the amount of outstanding OTC derivatives smaller by approximately $500 trillion. Also, the market has long known that the Abe regime in Japan will soon pass the 15 zeros of debt mark, if they have not already done so. The devil is in the details and in this case the hyperinflationary details remain firmly entrenched in a cacophony of noise and distraction.