still an opportunity
It seems lately, the more bullish the case for silver, the less interest comes from investors. Actual purchases of silver bars and coins are in the doldrums and not much is written about silver to ratchet up interest and enthusiasm. The price explosion predicted by a number of analysts hasn’t occurred as the price regularly falls back after a run-up. Gains have been modest rather than dramatic. At this juncture, silver looks to be a conservative investment without much downside risk.
If the late silver analyst, Ted Butler, were still with us, he would argue vehemently that a price explosion is inevitable and will happen soon. He insists that the silver has been artificially suppressed in the futures market and the current price does not reflect the actual supply and demand for silver. A free market price would have the metal at $80-$100 an ounce. He further thought that silver could run up as high as $200 or more in a temporary price blowout before falling back to its free market level. The fact that it hasn’t done any of that, has diminished interest in silver. Competing investments in crypto and the stock market have stolen the thunder from silver. Investors rush into what’s hot and avoid what’s not.
The belief that the new administration will spawn a golden era of sound economic practices that could reduce the need to hedge or protect against a crisis will likely be a vain hope. As Robert Burns once wrote, “The best laid plans of mice and men oft go astray.” That’s why you still need to keep 10% of your net worth in silver. Furthermore, the price explosion Mr. Butler forecasted is still a distinct possibility. Silver is the ultimate contrary opinion investment. Long-term, Mr. Butler claimed silver could make you prosperous.