Kitco News, Released on 10/26/20

0:00 – What’s been holding silver back?
4:34 – Silver and inflation
6:45 – Silver’s correlation to gold
8:11 – Timeline for $100 silver
9:18 – The “fair” gold-silver ratio
11:51 – Silver’s performance in recessions
13:49 – Monetary policy vs industrial demand on silver
16:14 – Risks to industrial demand
17:45 – Supply and demand

Gold and silver have always held a close correlation with each other, with silver usually outperforming gold in bull markets, as it did this year.

Assuming a $4,000 gold price target in two to three years’ time, which is roughly 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 the time gold doubles in value, said David Morgan of TheMorganReport.com.

“The last time we had that run in silver in 2011, we’ll look at something similar, so at that time it got to about 33 to 1, so if we $4,000 gold and we use a ratio of 40 to 1, that says $100 silver. Is that out of the question? I don’t think so. I actually forecasted that price back in 2003 when silver was under $5, so I think we’ll see that,” Morgan said. “I’m not saying next year, but we’ll see that.”

David Morgan is a world-renown precious metals aficionado. He is the creator of the Silver-Investor.com website and The Morgan Report, a monthly report that covers economic news, overall financial health of the global economy, currency problems and the key reasons for investing in precious metals. A dynamic, much-in-demand speaker all over the globe, David’s educational mission also makes him a prolific author, having penned Get the Skinny on Silver Investing, The Silver Manifesto and, most recently, Second Chance: How to Make and Keep Big Money from the Coming Gold and Silver Shock.

  gold, silver