From Collin Kettell: Precious metals analyst David Morgan is excited about the future of silver, “I have a lot tied to this sector. I’ve always felt that the highest calling you can have is to live your passion. You can be self-serving and serve others at the same time.”
David discusses the gold-silver ratio and why it is very favorable for silver. He is convinced that the bottom is in for precious metals.
Silver and gold were strong in 2016, and then we had the sell-off. The leading sector for 2016 was the gold mining sector. This year has been spotty, but we are at 12-month highs as we have retraced all of the earlier losses this year.
If you look at the Junior space stocks are not up that far overall there is still lots of value. However, some of the ETF held companies had larger price gains.
David discusses what the true price of gold should be in comparison to the M1 money supply and how it has changed over the years. By 2020 he expects we could see $100 for silver and $7500 for gold and why it will likely go beyond fair value.
Silver should outperform in the long term once the big money has entered the gold sector. David tells the story about how Warren Buffett purchased 28% of the world’s silver in 2004. This story demonstrates just how tiny the silver market truly is.
The iShares Silver Trust ETF (NYSE:SLV) fell $0.14 (-0.82%) in premarket trading Monday. Year-to-date, SLV has gained 12.64%, versus a 11.33% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Palisade Research.