Gold and Copper Acting Well- Silver Next?

[Recyclersteve]

Gold has gotten lots of press about getting close to the $1,800 barrier for the first time in years. Now copper comes along and, in spite of the recession, is up 21% for the quarter (per Kitco), the best quarter since September, 2010.

Remember what happened around that same time? Yes indeed, that is when silver started a run from the teens to $49+ in Spring, 2011. Will history repeat? Who knows. Is silver due for a run? IMHO- yes. This could be fun to watch. Also, a very long-term chart shows a double top in silver with the tops near $50ish in 1980 and 2011. If we bust through $50 decisively this time, the move could go much higher.

Also, to add fuel to the fire, you have lots of millennials still working from home with their new Robinhood accounts and money they’d like to put into the market. It won’t take a whole lot of that money to go into silver to cause a big move upward. Perhaps some money might even rotate out of bitcoin and other cryotos.

Then you have the story of roughly $4 billion of fake gold being used as collateral for bank loans in China. This was on zerohedge.com. ZH is speculating that there is more fake gold in China. Rather than go to jail, Tyler Durden is saying another way out would be for those with fake gold being used as collateral replace it with real gold. The sooner they act, the less it would likely cost.

Add in a pandemic that pretty much caught the world by surprise and you’ve got a nice recipe for much higher prices. It would be pretty nice to say to a car dealer, “Hey I’ll trade this 100 oz. bar of silver for that car.” Especially if he offers to throw in five years of free oil changes!

[pennypicker]

I agree with all the above. Additionally we must consider the possibility of a Biden win, and word is that Biden may appoint Elizabeth Warren as Treasury Secretary or some other very high position and that Warren will be the chief economic voice in a Biden administration. Warren will come down extremely hard on Wall St. and banks with massive new regulations. With a Biden win I would expect a significant drop in stocks, increased taxation and huge increases in gov't spending resulting in even more massive increases in the national debt which are all drivers for silver. A Biden win with Warren calling the shots on our economy would be extremely bullish for gold and silver for the long term. And if Biden wins AND the Democrats also win back the Senate then all hope for this country is lost. Just yesterday Newt Gingrich said on TV that if Biden wins then Biden, Pelosi and Schumer will turn America into one giant California and the once great America that we knew in the past will never come back again!

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[Morsecode]

The hard work has been done. The move from $10 oz to $20 oz is almost complete. When/if (small 'if') that happens, any number of lesser influences could easily carry spot from 20 to 40. Enthusiasm alone might do it.