$250 Silver
" And you look at the real price of silver inflation-adjusted. Remember the famous Hunt Brothers effort to corner the silver market back in 1980? Silver hit $50 an ounce. Okay, but adjust for inflation since then. The CPI is up about 5-times since 1980, so that $50 is more equivalent to $250, and silver is sitting here at $26. So, is there room for silver to go up? Oh my goodness, yes." Ray Arnott, CEO Research Affiliates.
On January 27, the spot month in gold was trading at a premium to the back months. Therefore, it’s an inverted market, which usually means there is a shortage of supply. Everyone wants to take delivery. People are going into the futures market to take delivery, which is putting a squeeze on the COMEX and London Metals Exchange. We are going to find that whatever physical they said they were carrying was highly leveraged. It is the same thing as happened in 2008, where mortgages were highly leveraged. The difference is that the short-side of the market is running scared. They can’t cover their shorts. Every time gold and silver come down, buyers come in at a higher level than before. Now we are looking at $1880 gold and it is not coming down. Every time we come down, we get a reversion rapidly. Supply is taken every time by strong buying. If we break through $1880, we should hit $1900 or $1917 as the weekly targets. Then the monthly and annual targets come into play. If it goes back into that $1870 area, it is pretty strong for gold. Buy corrections and hold your long-term position in gold.