Question:
I would like to know your
comments on what was
recently published by CPM
Group that the silver price
will continue to consolidate
for the next three years.
According to CPM, the silver
average price is expected to
be US$18 minimum before
resuming the uptrend in the
second half of the next ten
years.
More than a year ago you
recommended that buying gold
below 1500 and silver below
30 would be secure
investment for the next
three years. That was with
the forecast for silver
price to break US$50 within
the same period. --Abdul H
Comment:
Jeffrey and I have a
different world views. My
view is that the global
financial system will
experience a crisis again
similar to 2008 only it will
be worse. I fully expect
this to take place in the
2016 to 2017 timeframe if
not before. As the system
continues to experience
stress, the flight to money
that has no TRUST
issues--that is, gold and
silver--will increase
dramatically. This will take
the paper price far higher
than it is currently.
CPM in my opinion expects
the system will remain
intact and the problems we
are experiencing will work
themselves out. This will
decrease the amount of
demand for silver as
money/crisis hedge and
therefore price will be more
dependent on industrial
demand alone.
Therefore the question
really comes back upon you.
You must determine your
world view, which may be
somewhere between the view I
hold and that outlined by me
for CPM. The beauty is, as
an investor you make your
own determination and invest
accordingly. If you think
there is perhaps a ten
percent chance that I am
correct, then invest ten
percent in precious metals
related investments and use
the rest of your savings to
invest in areas that you
find attractive.
David Morgan
