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Why Is Silver Stagnant, and When Will it Start Moving?

Silver at the Onset of Crisis

Gold & Silver During Stock Market Crashes

silver usually weak during recessions

gold usually positive during recessions

This data specifically tells us that silver is not highly responsive to a stock market crash or a recession.

So what is going to push silver higher? And when?

#1: A Rise in Inflation

Inflation isn’t on the radar of most investors right now, but given the extent of currency abuse, especially the Fed’s public admission that QE is “unlimited and open-ended,” it seems unwise to assume inflation isn’t a future reality. And it could get here sooner, and soar higher, than many think.

And silver’s two biggest modern-day rises have occurred during inflationary environments: the runaway inflation of the 1970s, and when investors feared inflation during the Great Recession.

silver gains applied to today

Based on the massive amount of currency abuse underway and the inflation that is likely to result, prices in this range seem not just realistic but likely.

#2: A Long Fuse

silver trailed gold then outperformed it in most bull markets

silver 1976 to 1980: big gains came at the end

History says the silver surge is coming. It means we should hold on and make sure we have the amount of metal we want.

#3: Real-World Effects of Monetary Destruction

If you haven’t watched it, check out episode 7 of Hidden Secrets of Money to see Mike lay out the case for this “velocity of currency” effect.

Keep in mind it’s not necessarily just about inflation, but any monetary effect—the US dollar, debt, deficits, or a coming black swan that is yet to be quantified or seen.

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