Gold Is at $800: Why Isn't Silver at $40?
Source: Roland Watson, Seeking Alpha (11/4/07)
...Silver will reach $40 and assuredly go much higher in the years ahead but for now we take each bull leg at a time...
But of course, silver is not at $40, it is just under $15 so what gives? If silver is going to emulate 1980 then it has some serious shifting to do in the next 10 months or so before this particular bull wave ends. Can silver go from $15 to $40 in a matter of months? Well it is possible since the same feat was achieved during the “Hunt Spike” in a mere matter of four months. So nothing can be excluded but neither is it assured. There can be nothing worse than expecting $40 silver only to see it hit $39 and then drop back to $15.
But again why is silver not at $40? The answer is because we are not at the same point in the commodity super cycle that we were back in 1980. Truth be told, this is more like 1960 than 1980. This commodity super cycle or the Kondratyev inflationary upwave as others call it has a long way to go yet. Silver will reach $40 and assuredly go much higher in the years ahead but for now we take each bull leg at a time.