It’s happened before and it will happen again: silver prices hitting $50, that is. Ted Butler of Butler Research says silver has all of the “ingredients” it needs for its next price run. He believes the metal will surpass $50 and stay there for quite some time. In other news, Bloomberg economists warn that the Fed will reach 5% interest rates by March 2023, causing a global recession.

Butler Research via SilverSeek/Ted Butler
The Coming Move to $50 Silver (and beyond)

Twice over the past 42 years, the price of silver has risen to $50; once back in 1980 and again 11 years ago, in 2011. Obviously, no one would argue that something that occurred twice already is not capable of happening again. On both prior silver price peaks, prices then fell sharply and quickly. But the next coming move to $50 in silver is much more likely to not only exceed the past two highs, but also remain far higher for far longer than previously.

In 1980, the price of silver rose from $7 to $50 in little more than a year, driven, essentially, by the concerted buying, both in futures and physical metal by interests associated with the Hunt Brothers from Texas and then fell even more sharply as a result of exchange and regulatory actions to unwind the Hunt’s buying. But the epic price run up did show, conclusively, that speculative investment buying could drive silver prices sharply higher.

In 2011, silver hit near $50 again, but this time there wasn’t the slightest hint of excessive speculative buying in silver futures, an area I monitor closely. Instead, the price surge was due to the physical buying of silver, mainly by way of the silver ETFs (investment vehicles that didn’t exist in 1980). The sharp price fall, starting in May 2011, was engineered by interests associated with JPMorgan and did succeed in persuading the silver ETF investors who drove prices higher to sell.

You can read the full story, here.

Bloomberg via Yahoo Finance/Steve Matthews and Sarina Yoo
Fed Seen Aggressively Hiking to 5%, Triggering Global Recession

Federal Reserve officials will maintain their resolutely hawkish stance next week, laying the groundwork for interest rates reaching 5% by March 2023, moves that seem likely to lead to a US and global recession, economists surveyed by Bloomberg said.

The Federal Open Market Committee will raise rates by 75 basis points for a fourth consecutive meeting when policymakers announce their decision at 2 p.m. in Washington Wednesday, the survey found.

Rates are projected in the survey to rise another half point in December, then by quarter points the following two meetings. Fed forecasts released at the September meeting showed rates reaching 4.4% this year and 4.6% next year, before cuts in 2024.

You can keep reading, here.

Fox Business/Megan Henney
Inflation gauge closely watched by the Fed surges again in September

The Federal Reserve’s preferred inflation gauge accelerated again in September, keeping prices elevated near a four-decade high, according to new data released Friday,

The Personal Consumption Expenditures (PCE) index showed that core prices, which strip out the more volatile measurements of food and energy, climbed 0.5% from the previous month and rose 5.1% on an annual basis, according to the Bureau of Labor Statistics.

Those figures are in line with the 0.5% monthly increase and 5.2% annual increase forecast by Refinitiv economists, indicating that inflationary pressures are broadening throughout the economy.

Continue reading, here.

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