Silver prices will soar to record levels in 2012

Corrections are the norm in any long term bull market and silver is no exception.  The correction that began in May of 2011 and ended in December has set the stage for what will be an explosive move up during 2012 and beyond.

Since hitting the 2011 low of $26.16 on December 29, 2011, silver has climbed steadily, closing on Monday at $33.18, up 17.4% on the year and up 26.8% from last year’s low.  Today’s price should be viewed by long term silver investors as an exceptional opportunity for capital appreciation and wealth preservation.

The underlying fundamentals that will drive silver higher this year include unprecedented demand for both physical silver and silver ETFs, virtually limitless money printing by central banks worldwide to prevent a debt implosion and a growing realization by the public that the Federal Reserve is deliberating and systematically debasing the U.S. currency.

Sales of American Silver Eagle bullion coins by the US Mint may hit an all time record in January.  As of January 30^th, the Mint has already sold 6,082,000 bullion coins.  The previous all time record for sales occurred in January 2011 when sales were 6,422,000 ounces.

Last January was atypical in that monthly sales of the Silver Eagles coins tapered off to about 3 million coins per month thereafter and only in September 2011 did sales exceed 4 million coins.  In the three previous years from 2008 to 2010, January sales volume established the baseline of monthly sales for the rest of the year.

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Posted by Silver Guru on Jan 31 2012. Filed under Silver Analysis. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry