An interesting article by David Morgan posted at
Silver-Investor.com which gives an insight into how high the silver price might go in the next few years.
Social Security- Security or Insecurity?
Quote:
After Warren Buffett announced his silver purchase in 1998, Forbes magazine ran a brief article on silver and included a very interesting graph. We of course are well aware that Buffett recently announced that Berkshire Hathaway did sell their silver just about the time the Barclays Silver iShares Exchange Traded Fund began.
This graph provided 600 years of silver prices in 1998 dollars. So, all the inflation is taken out of the equation, and the prices reflect silver's true value. In constant dollars, silver's purchasing power averaged $150 per ounce in 1998 dollars for 600 years. This is the average purchasing power for 600 years; obviously, silver has nothing close to that "value" today, which provides one unbelievable investment opportunity.
The question becomes whether silver will ever reach either the $150 nominal value or, better yet, the purchasing equivalent of the 600-year average? According to long-term historical standards it must, but will we all live long enough to benefit from this?
The Silver Investor is on record as stating that silver could trade as high as US$100 per ounce in nominal terms and perhaps higher. It is our belief that this will most likely occur on a price spike and the price will quickly adjust downward but establish a new range. We are looking at 2007-2008 as the area for a large price spike, but not the final spike! We will need to study the market activity to make our best call at the time.
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