What is my forecast for Silver and Gold for 2016?
Hey there. Make sure you watch the videos I posted on my 2 previous posts. They are very enlightening.
So, what do I think about 2016 and how Silver and Gold will react. Well, first, let's agree that depending on what you goals are with Silver and Gold, 2015 may have been a bad year, or possibly a very good year. If your goal was to accumulate Silver and Gold, then 2015 was a pretty good year. The prices had a few high points, but overall, the prices were definitely in favor of the "BUYER". Or, as some of you like to be referred to, the "STACKERS". But remember, my blog and posts aren't really intended for the Silver and Gold "INVESTOR". Some investors read my blogs, and I'm sure they gain some knowledge from them, but that isn't the main audience I am writing to. Remember, I'm writing mainly to the 4 "Buyers/Stackers",
1. Using Silver and Gold to purchase items at a discount. (When time is on your side)
2. Using Silver and Gold to reduce debt.
3. Using Silver and Gold as "Insurance". (My MAIN reason). Covers inflation and economic problems; as well as supplementing retirement income.
4. Using Silver and Gold to cover national financial "SHTF" scenario, and crash of paper currency. (Preppers).
But remember too, many of these 4 Buyers/Stackers, (Especially #3 and #4) overlap. There is absolutely nothing wrong with buying Silver and Gold for multiple reasons. E.g. Some Silver and Gold put aside for #4; a MAJOR Chunk set aside for #3; and possibly buying more for a purchase you're planning or to reduce debt in #'s 1&2. Me personally, I'm 80% in #3 and 20% in #4.
So, what do I think is going to happen in 2016. Well, the one thing that is for sure, is that the production of Silver and Gold has been going down. Mainly because of the price. The posted BREAK EVEN price for mining and selling Silver, is $17 an ounce. With it selling at $14 an ounce, there's no reason to mine it. Now, the reason Silver is still being mined, is because 80% of mined silver is a by-product of mining copper, lead, zinc, and gold. As long as they are mining these other metals, they will produce silver as a by-product. The break even for Gold, is around $1150 an ounce. AS SUCH: I expect Silver prices to rise.
Having said that, because of the economies of the world not doing so well; (Contrary to what the government(s) what you to believe); the need for copper, zinc, and lead are down considerably. As such, the production of Silver is also down. And I expect the volume to be down more in 2016 than it was in 2015. AS SUCH: I expect Silver prices to rise
There's also a much greater demand for Silver and Gold for investment purposes. Silver more than gold, mainly because Silver is SO UNDERVALUED compared to gold, and Silver is easier to buy by the average person, vs gold, which costs so much more. AS SUCH: I expect Silver and Gold prices to rise.
Now, the "INDUSTRIAL" use of Silver, is a catch-22. The need is definitely there. Include with that, the big push for "GREENER" energy, such as solar, as well as the million of other industrial purposes for Silver, and you can definitely see the price going up. Especially with the production going down. However, with a SLOW ECONOMY, there is less construction and investing in infrastructure and new facilities. As such, this could keep Silver's demand and prices down. AS SUCH: I expect Silver prices to remain neutral.
Overall---------- I expect Silver to AVERAGE out the year, around $17-$18 an ounce. I say average, because I expect it to fluctuate between where it's at around $14, and maxing out around $20 an ounce. Where and when these numbers hit, I have no idea. But I do believe that the average for Silver will be around $17-$18 an ounce. I also expect gold to be around $1150-$1200 an ounce. Again, on AVERAGE.
Now, there is one variable, that can totally have a major effect on all of these predictions. THE UNITED STATES PRESIDENTIAL ELECTION!!!Remember 2008??? Right as Obama got elected, the stock market and economy took a major dive. It resulted in a lot of drastic changes. The same could happen with the 2016 election. It's hard to say which way it goes with a Hillary Clinton Candidacy, or a Trump, Cruz, or Rubio Candidacy.
Anyway; these UNSURE SITUATIONS, give us MORE REASONS to buy some Silver and Gold and have it as part of our portfolio.
CYA: SE:
So, what do I think about 2016 and how Silver and Gold will react. Well, first, let's agree that depending on what you goals are with Silver and Gold, 2015 may have been a bad year, or possibly a very good year. If your goal was to accumulate Silver and Gold, then 2015 was a pretty good year. The prices had a few high points, but overall, the prices were definitely in favor of the "BUYER". Or, as some of you like to be referred to, the "STACKERS". But remember, my blog and posts aren't really intended for the Silver and Gold "INVESTOR". Some investors read my blogs, and I'm sure they gain some knowledge from them, but that isn't the main audience I am writing to. Remember, I'm writing mainly to the 4 "Buyers/Stackers",
1. Using Silver and Gold to purchase items at a discount. (When time is on your side)
2. Using Silver and Gold to reduce debt.
3. Using Silver and Gold as "Insurance". (My MAIN reason). Covers inflation and economic problems; as well as supplementing retirement income.
4. Using Silver and Gold to cover national financial "SHTF" scenario, and crash of paper currency. (Preppers).
But remember too, many of these 4 Buyers/Stackers, (Especially #3 and #4) overlap. There is absolutely nothing wrong with buying Silver and Gold for multiple reasons. E.g. Some Silver and Gold put aside for #4; a MAJOR Chunk set aside for #3; and possibly buying more for a purchase you're planning or to reduce debt in #'s 1&2. Me personally, I'm 80% in #3 and 20% in #4.
So, what do I think is going to happen in 2016. Well, the one thing that is for sure, is that the production of Silver and Gold has been going down. Mainly because of the price. The posted BREAK EVEN price for mining and selling Silver, is $17 an ounce. With it selling at $14 an ounce, there's no reason to mine it. Now, the reason Silver is still being mined, is because 80% of mined silver is a by-product of mining copper, lead, zinc, and gold. As long as they are mining these other metals, they will produce silver as a by-product. The break even for Gold, is around $1150 an ounce. AS SUCH: I expect Silver prices to rise.
Having said that, because of the economies of the world not doing so well; (Contrary to what the government(s) what you to believe); the need for copper, zinc, and lead are down considerably. As such, the production of Silver is also down. And I expect the volume to be down more in 2016 than it was in 2015. AS SUCH: I expect Silver prices to rise
There's also a much greater demand for Silver and Gold for investment purposes. Silver more than gold, mainly because Silver is SO UNDERVALUED compared to gold, and Silver is easier to buy by the average person, vs gold, which costs so much more. AS SUCH: I expect Silver and Gold prices to rise.
Now, the "INDUSTRIAL" use of Silver, is a catch-22. The need is definitely there. Include with that, the big push for "GREENER" energy, such as solar, as well as the million of other industrial purposes for Silver, and you can definitely see the price going up. Especially with the production going down. However, with a SLOW ECONOMY, there is less construction and investing in infrastructure and new facilities. As such, this could keep Silver's demand and prices down. AS SUCH: I expect Silver prices to remain neutral.
Overall---------- I expect Silver to AVERAGE out the year, around $17-$18 an ounce. I say average, because I expect it to fluctuate between where it's at around $14, and maxing out around $20 an ounce. Where and when these numbers hit, I have no idea. But I do believe that the average for Silver will be around $17-$18 an ounce. I also expect gold to be around $1150-$1200 an ounce. Again, on AVERAGE.
Now, there is one variable, that can totally have a major effect on all of these predictions. THE UNITED STATES PRESIDENTIAL ELECTION!!!Remember 2008??? Right as Obama got elected, the stock market and economy took a major dive. It resulted in a lot of drastic changes. The same could happen with the 2016 election. It's hard to say which way it goes with a Hillary Clinton Candidacy, or a Trump, Cruz, or Rubio Candidacy.
Anyway; these UNSURE SITUATIONS, give us MORE REASONS to buy some Silver and Gold and have it as part of our portfolio.
CYA: SE:
Comments
Post a Comment