Why Silver is Headed to $500/oz - plus, Backwardation Explained by Jason Hommel

[poetsguide]

I believe this will happen within 3 to 5 years. Unless a black swan hits the US or world economy.

[indman101]

maybe $50 -$60 but 500 would be a joke.

[shawso7]

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Keep plain solid wedding bands in different sizes & mark them with their weight. Government is less likely to confiscate "personal" jewelry!

[EXP0SEtheFRAUDS]

I agree with the silver story to a point but not one analyst takes into account the destruction of debt and deflationary forces. This is not the 1970's. But I agree silver is undervalued and going to at least $75

[dkpai05]

NONE OF THIS WILL EVER HAPPER. SLIVER WILL NEVER BREAK $50

[dkpai05]

@dkpai05 *HAPPEN

[911madeinamerica]

@dkpai05 Ya I agree this wont happer

[trubornagain]

Another perspective is that these assumptions are based upon the dollar still being used with its current supply, devaluations will bring prices of everything up, a new world currency will be based on everyones gold & silver, and eventually will be chipped and no one will use currency. Whatever you do, if you are not raptured, do not take this mark of the beast, it will not be secret, for you will know and choose to die for JESUS, or take it and deny HIM. This choice will seal your eternity.

[slutica]

If everybody spent $1 on silver then....... If everybody spent $1 on hookers.... Quick buy hookers

[slutica]

Also "historical ratio". That was back 100s of years ago when it was pegged. Has not been 16:1 for year. Don't measure silver in gold

[slutica]

Look. I own Ag, but I am sick of all these people sayi g "it was $50 back then so" herp derp. They tried to corner the mark then. So what now

[premium718]

@slutica this time when all the money comes in it will act the same..... just ten folds...

[guitaristwagner]

So when they say buy silver, do they mean buy silver coins of any kind like uncirculated or proof? or do they mean buy silver on paper instead? This silver investing seems kind of confusing to me :s

[runhorun]

@guitaristwagner Silver is silver. No matter what shape or form it is in. I buy silver coins because the content. No matter if they are proof or not. Even if the coins look like junk coins I buy them. What is important is the content.

[guitaristwagner]

@runhorun so buying silver coins straight from the u.s. mint is worth it from the investment point of view?

[obben99]

@guitaristwagner hell yeahh!!!!

[ArgentPure]

@guitaristwagner If you don't hold it then you don't own it! Start building your stack ASAP!

[justanotherbum007]

5 billion dollars per ounce by next week, bitchez.

[Gone5451]

The dollar value of silver is based mostly upon three things:

1) The rate and intensity of money printing

2) Physical demand

3) And that the silver to gold ratio is only about 50:1. It is set to rise back to its historical trading ratio of 15:1 or higher. This will happen when the manipulation of the precious metals market is finally exposed.

To put a specific price and date is very difficult, but in any case, you will see silver on viagra soon enough. Same with gold.

[Dreama40]

Silver @ $250/ounce by end of 2012, heading beyond $500/ounce by 2013. Its so obvious this will happen when you look at history and the debt problems in the world today its a mathematical certainty.

[FortitudeOfHeaven]

KEEP STACKING.

[CodaFrock]

I am selling silver coins on ebay, you can find the link on my only video.

[ochenhetree]

silver prices will go through the roof-in 2013 look for 1000 per once easy

[jlgg4]

Great I buy collectibles at a great company has a great buy back program also called ISN Coins

[slutica]

If inflation adjust the price silver got to when the hunt brothers tried to corner the market then that's $500. Nice logic

[GuntherL1]

Wait for dollar hyperinflation. Silver will then be valued at 4 quadrillion dollars per ounce.

[masterpatric07]

i read an article where he says silver will be $8000.Now he is going down to 500.hmmmm

[gasdorf]

but?? shouldnt you talk about $50 dollar silver first?? jason hommel silver salesman lol plug your silver dealer later in the show ...silly to be talking about $500 silver ..we havent tested the $50 range

[swtaxclients]

I GOT a question for anyone out there :

gold and silver is based in dollars correct ? i.e. ($35.35 per ounce silver)… this is the question: when the dollar collapses ,lets say down to 10 cents , wouldnt that mean that the VALUE of silver would be REDUCED to 10 cents per ounce ??….since the metals are based in dollars

[LibertyDownUnder]

@swtaxclients, how can the dollar value collapse to 10 cents?

A dollar is worth a dollar. The $ value can collapse in terms of bread, oil, gold, silver, iron etc. And in this case people can save their purchasing power with Gold & Silver.

[masterpatric07]

@swtaxclients no that is if you use price valuation and not value.value is everything.if you want a real estate or any goods, simply get the price of any asset divided by the price of gold,silver or oil or the dow and that will tell you how valued or undervalued is the asset in question.now go back 5 years in time and do the same with those prices.

[masterpatric07]

@masterpatric07 yeahh ,yeahh i read mike maloney too,but the main issue here is,when you cash it,you will cash it for which currency?i believe people will be afraid of going back to currencies.it will be useless to exchange it for dollars again.it is not clear yet, how are we going to get profits if we do not know for which currency needs to be traded.i do not see exchange precious metals for real goods.

[tannpan]

@masterpatric07 Look at Utah- the 1st state of (currently) 12 states to PASS legislation PERMITTING the usage of gold and silver in exchange for real goods. You can pay for groceries, gas, clothing, whatever in Utah with gold and silver. It is now legal tender for all debts public and private. California is the next most likely to pass similar legislation... and there is talk that the Federal Government will take gold and silver for tax debt (win, win in their eyes, so why not?)

[SuperCulloden]

As of this date, May 9th. 2011 the cost of mining and refining silver is approximately $7.00 per ounce and the producers are rubbing their hands in glee, saying that the price of silver now at $35.00 exceeds their wildest dreams.

How many times has it been said by the 'gurus' that the supply of silver is running out, that the deeper into the earth they go, the poorer the quality?

If that was the case, it would cost much more to mine and refine silver than a mere seven dollars per ounce today.

[bruno188home]

@SuperCulloden any idea how much it cost to get a barrel of oil out the ground? 18$ last time i heard.

[toob247]

If you are a small purchaser , 500 at a time or so . I have the best time going to farmers market s and asking if they just happen to have a bars ugly or what not , his choice , that he wouldnt mind getting rid of at a decent prioce since they,ve owned it since silver was less than 10 . These old guys have sat on silver since it was 5 bucks and are tickled to see you offer 3 decent morgans for a hundred or 4 art bars for 140 etc . Support your local old man at the farmers market

[Rico8458]

we love Jason. when a government pays it people in paper and not silver, we have slavery. money is private not public. money is not paper but silver and gold. when government takes control of the free market money we have marxism in america.

[tikiduck]

I buy from Jason. I drive two hundred miles round trip to buy from them. Great shop, always well stocked, and sometimes you get to talk to Jason while you are there.

Highly recommended!

[ostinlt12]

I think that even if it goes to $500 and gold to 10k, food and water are required. For food, silver and gold will be given away.Its a decent plan but only if you have equal amt of non perishable food on hand.

Dont count on a black market in your silver until the govmt collapse, and then food/water and guns will mean much more.

[iannetta11]

Some day soon the masses will realize that paper notes, redeemable for NOTHING, are not money. Until that day, invest in gold, silver, and copper. And some lead for insurance purposes.

[SovereignBeing]

anyone bought from jason??

[drinkmoresoda]

i bet at 80$ they raise the interest rate but i hope it goes to 500$ everybody buy more!

[Caragui]

I see silver continously going up in value. How high it will go and how fast? That I'm not sure.

[jayangli]

@Caragui will etfs hit 500?

[choctawindian7473]

MY PERSONAL BELIEF IS THAT $500 IS VERY VERY CONSERVATIVE. WATCH SILVER HIT $5000 AN OUNCE IN THE NEXT TWO YEARS. WHY? BECAUSE WHEN IT BACKS A NEW GLOBAL CURRENCY, IT WILL NEED TO BACK A CURRENCY IN THE QUADRILLIONS. THE QUESTION IS NOT HOW HIGH WILL SILVER GO, THE QUESTION IS WHEN WILL WE GO TO A NEW CURRENCY STANDARD!

[disciple90633]

@choctawindian7473 why are you yelling? calm down dude, silver will do what it does whether you type all in caps or not.

[premium718]

@disciple90633 LOL

[gringosmasher1]

@choctawindian7473 5000? LOL .i dont know what the fuck kine of weed u indians smoke on the reservaton, but obveous you smokeing to much of that shit. u will never even see 500.

[Ryan40272]

@gringosmasher1 You need to learn how to spell!

[gringosmasher1]

@choctawindian7473

[rev66blessu]

@choctawindian7473 And that sounds like common sense too, something you dont hear on the "NEWS"!

[PeaknikMicki]

$500 calculated in that way is of course a low ball figure as 1) industrial fundamentals are better now than 1980 and 2) instead of a large concentrated long position there is a huge short position and 2) there is less above ground stocks available. So if the monetary base calculation kicks in at full it would be reasonable to see AG > $1000.

[charlesfuchs]

Its so nice to see Jason again talking about silver

[connectingdots1]

@charlesfuchs but it's sad to hear him confuse premiums with backwardation at the end, he should have stuck with his initial account of backwardation INSTEAD he confuses people saying this is normal in the silver industry and then gives an example of premiums savings if willing to wait a couple of weeks?

Clearly that isn't an example...Backwardation is a SIGNAL of supply shortages and now we have the Canadian mint also saying they're having problems sourcing silver along w/ US Mint running out.

[Codeeist]

@connectingdots1

Backwardation means offering a discount at the current spot for a FUTURE delivery. By making someone "wait" for delivery it does not tie up as much capital.

[Pum618]

It's time for most of us to become the millionaire soon.... Finally!

[connectingdots1]

Silver is very difficult sourcing says Eric Sprott and explains backwardation youtube.com/watch?v=Katy6jhiV8­A

[younitehumanity]

Silver Bugs shouldn't be happy about the rise in price of Silver...It is sad that we have to exchange our currency for these metals because the U.S. is printing the money like there is no tomorrow. I do see SIlver being a future global currency...just google : NWO SILVER COIN

[kevreilly7]

QE 5 = $5000 Silver - - Seriously, who the heck knows....its just a number...we are nowhere near a top........sit back and enjoy the ride

[ytrogergt]

@kevreilly7 .... $5000? Of course! In 25 years, mate! And even if it did reach that figure, all prices of everything will increase in proportion, so you won't be rich at all!

[MiranUT]

@ytrogergt - It's doubtful that they will be a US dollar in 25 years.

[Codeeist]

@ytrogergt

Gold is keeping with inflation or near it. Silver is performing %400 better than gold. Silver is still prime to make major gains on gold.

[PeaknikMicki]

@Codeeist only recently. Historically measured Silver is still very much undervalued if you compare it in purchasing power or wages paid. That of course just suggests there is significant upside potential left just by reverting to historical average.

[dowhatuwill]

@ytrogergt No one knows what the price of silver will be in 5 , 10 or 25 years. I do know this: Everything will not increase in proportion with silver while it is so undervalued. Silver will increase dramatically in REAL terms. When 300-600 Oz is enough to buy an average home in the US (or elsewhere) then it could be time to sell.

[ytrogergt]

@dowhatuwill . . . . . when silver reaches 600/oz, then a house will cost one million. Too many folks own silver in various forms, and there's no easy way to make money for the masses.

[ShimmeringTruth1138]

@ytrogergt Sure but if your mortgage(death agreement) has been established before that then it will remain at X amount.

[tgvas]

@ytrogergt THAT'S NOT THE WAY IT WORKS WITH REAL ESTATE.

LOOK AT SILVER IN THE LAST 6 YEARS, FROM $6 TO $36, BUT REAL ESTATE AS A WHOLE HAS GONE DOWN IN VALUE BY 1/3 OR MORE IN MOST LOCATIONS

[dowhatuwill]

@ytrogergt You are so wrong for so many reasons. Sad thing is, people like you are the vast majority. You own silver and never will . You'll see the light only when it's too late and all the sheeple want in.

" Too many folks own silver" Funny stuff. Less than 1 in a 1000 own any silver. 1% of 1% of investment dollars goes into silver. Nothing! When we get 2% of 1% silver will double. Wake up.

[dowhatuwill]

@ytrogergt You are so wrong for so many reasons. Sad thing is, people like you are the vast majority. You Don't own silver and never will . You'll see the light only when it's too late and all the sheeple want in.

" Too many folks own silver" Funny stuff. Less than 1 in a 1000 own any silver. 1% of 1% of investment dollars goes into silver. Nothing! When we get 2% of 1% silver will double. Wake up.

[wesleytarbuck]

what is the general realistic long term consensus on this stuff?

im hearing anywhere from $500 to $100,000 ? what does everybody think?

[Luiyi385]

@wesleytarbuck Check out (google search): prison planet silver's historical correlation

[perfectscotty]

@wesleytarbuck a minimum of $100 per ounce is all i could say wes.

[connectingdots1]

" Backwardation in silver makes it very bullish explains Bob "

youtube.com/watch?v=ULuqQ6FRfg­k

[connectingdots1]

& how could we forget about the COMEX Dec silver report which mentioned how they ONLY had 117 million ounces but were contractually obligated to produce 720 million ounces of physical..guezz that kinda sounds like maybe someone has a little shortage problem,,don't you agree?

And also his explanation of backwardation is false...he's talking about Premium over spot price.

Backwardation is when people are willing to pay more right now for physical than wait a few months or yrs to get it cheaper

[connectingdots1]

Poor Jason, I guess he hasn't heard yet about the Royal Canadian Mint having a hard time sourcing silver and saying that they in expect things to get worse in the near future. And are now looking at ways to mitigate their risks of sourcing silver.

Also hes hasn't heard about the US mint running out of ASE and stopping production after running out of silver blanks. Most local coin shops have little to sell or none in many cases...is that also normal for Jason?

[proderivat]

Excellent - esp. Backwardation explaination ! THX.

[bigdad06]

Very true! $500 will be a temporary top on the way to four figures though.

[pringle959]

good video !!!!!!!!!!