Silver prices could hit $125/oz by 2014.
The value of silver per ounce has recently been projected be $75 to $125 per ounce in as little as two years, predicts Jason Hommel, a silver market analyst. Silver as of late sells at an average price of $30/oz. meaning a 150-230% gain for speculators who invest on silver these days.
Hommel underscores six important factors that affect this significant surge in the value of this precious metal, such as:
1. Reckless government expenditures that continue to weaken the greenback.
2. Volatility of currencies around the world.
3. Central banks purchasing gold to stabilize their national currencies and to protect the value of their foreign exchange reserves, which continue to plummet.
4. The relatively small size of silver market, worth only a little less than $3 billion a year in terms of investment demands.
5. The relatively obscure and unexplored supply and demand possibilities in the silver market, as well as the unpublicized ten year surge of silver’s value.
6. The enormous short positions in the silver market, valued at more than $200 billion in paper silver purchased by silver investors who failed to take delivery, but rather continue to trust banks with limited silver reserves available for clients.