My short term Silver target is $40 and I see this happening within 4-6 months. I loaded up on SLV calls when SLV dipped under $26. Holding January $30 calls which should do well. I also loaded up on some SLV April $35 and $40 calls. Target price for OIL is also $100 in the short term.

I’m in the US this week until next week. Economy here does stink but there is some activity going on for shopping. The difference between the poor and rich gap is now pretty big and obvious. Not much of a middle class left these days. Either rich or poor. This weekend at the Bellagio Hotel all rooms were booked and the line at XS at the Wynn was tremendous so people are going out and spending (those with money that is). I did notice that the casino tables were half empty though (half at minimum that is maybe even 60% in all the big casinos that I visited with the Venetian being one of the emptiest).

Be careful. There was a scary article about China in the Telegraph yesterday by Ambrose Pritchard. It contains a LOT of disturbing Chinese economic numbers. If China goes down for a few years (It will eventually recover) it could KILL prices of many metals and minerals. A major crisis in China could spread FAST. Everyone thinks China is invincible. If it has any big problem, people might panic.
I saw another article somewhere that said the Chinese one child policy would soon start to bite their economy. It seems a little early for that, but even the Chinese government has said that it WILL someday be a big problem for China.
I think that the bursting of a China bubble would take silver down a lot more than gold.
When the big banks start to tell you to buy China protection, it is probably a good idea to listen. They are like the Fed. They have access to the numbers.

Ed Note: Exactly right, the spike is a blow-off, the other side is a crash…

How many governments have silver stockpiles or have been buying? How many pension funds or insurance companies have silver bullion allocations? How many retail investors are into silver? The answer is none, none and negligible.

Nothing goes up in a straight line forever, and silver will naturally correct after an uptrend has run its course. But the fundamentals for silver are utterly fabulous and it is the most dirt-cheap, mispriced asset in the world. There are various reasons for that, not least being the fact that western banks have short-sold it for decades as part of a suppressive scheme that supported the strong dollar policy and made them shakedown profits. New position limits and the cleaning out of Comex stocks is going to put an end to that game and allow silver in due course to migrate back to its traditional 15-1 monetary ratio to gold, which will be apt as both metals re-assert their natural position as non-liability, non-QE-able premier hard currencies in the months and years ahead. $5000 gold is a conservative medium-term projection which would value gold at merely one tenth of a true gold standard on the basis of available ounces to a grotesquely inflated money supply (1:$50,000), and Sprott’s expected overshoot 10-1 ratio implies that silver is destined for $500 per ounce. Yes, it may retrace after hitting $50, or $80, or $140 (which it would need to reach just to equal its inflation-adjusted high of THIRTY years ago – and those inflation figures are manipulably downplayed), but will you re-enter when it does? If the answer is no, don’t trade, buy and hold and enjoy the ride, shutting your eyes or buying puts at the scary bits.

Comparing $50 in 1980 to $50 in 2010 is not a good comparison.

Precious metals will stop going up once governments stop printing money not when a certain price point is met.

Ed Note: You are right but there will be big swings up and down a long the way. That is the point this article is making. And true $50 today is nothing like 1980 – it is about a fifth of the value in real terms.

Some precious metals are more precious than others! Gold is not found all over the globe and is difficult to mine. Silver is scattered worldwide and is only difficult to mine at a certain price. When that price has been reached suddenly vast amounts of silver come to the spot market and supply exceeds demand. Prices fall fast. This is exactly what happened to the bunker-hunts in 1980 when they tried to corner the silver market. Far better to have ounces of gold than kilos of silver!

Arent people forgetting that technology in 1980 didnt really call for or rely on gold and silver connections like today,,? Thus being, I believe Silver which is a better conductor of electric etc will reach unheard of prices …..

I think silver will head up to the $100 range before long. It might end up being years, but the way silver is going probably not.