$100 Silver Price: When and Why We’ll See It – David Morgan

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Gold and silver have always been closely correlated, with silver generally outperforming gold in bull markets, as has been the case this year.

Assuming a gold price target of $4,000 in two to three years, which is about a 100% increase from current levels, and assuming a normalization of the gold-silver ratio to 40-1 , then silver should be trading at $100 by then. gold doubles in value, said David Morgan of TheMorganReport.com.

“Last time we had this silver run in 2011 we’re going to be looking at something similar so at that time it’s been around 33 to 1 so if we have $4,000 gold and that we use a ratio of 40 to 1, that says $100 in silver. Is that out of the question? I don’t think so. In fact, I predicted this price in 2003, when silver was below $5 , so I think we’ll see that,” Morgan said. “I’m not saying next year, but we’ll see that.”

The last time silver hit the $50 an ounce mark was in 1980 and then again near $50 in 2011.

“What was in place in 2011 was that QE2 was announced,” Morgan said. “What was in place was that people thought inflation was going to happen…but that’s not what happened, and that’s why silver hit that peak and is back down and really went nowhere but down for the next few years.”

Silver actually performs much better than gold in inflationary markets, Morgan said.

“Gold is best in a deflation, silver has mixed results, but in inflation there is nothing better than the silver market,” he said.

While in 2011 quantitative easing failed to provide liquidity that went into the real economy, thus boosting inflation, this time is different, Morgan noted.

“This time the money is going to Main Street. You basically have [universal basic income] go on, you have forbearance where you don’t have to pay your mortgage, your rent payment, you get those unemployment checks that are basically dabbed. Some people are earning more when unemployed than they were when they were working, and so you basically see the money coming to people at this point,” he said.

Even if a recession were to persist, monetary policy would have a stronger pull on silver, defeating the downward drag that weak industrial demand would have, Morgan said.

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.


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