Silver Prices: What Will Happen in 2020?

On December 2, 2019, James Anderson of SD Bullion, Louis Cammarosano of SmaulGld, and Chris Marcus of Arcadia Economics joined Philip Kennedy’s live video conference call to discuss Silver Prices 2020 and beyond.

The discussion is a deep dive into the silver market specifically while also touching on contributing forces at play.

Silver Price 2020s Discussion | James Anderson of SD Bullion

Timestamp points touched upon with backlink deeper dives interlaced.

Speaking to the point made @9:47 US Treasury Secretary Steven Mnuchin’s calling the CEOs and heads of 6 major investment banks as the US stock market was rolling over the end of 2018. 

The US stock market is already stretched to record high values versus undervalued commodities. Does Mnuchin's having to call CEOs of major banks give us further medium and longer-term stock market value confidence?

Perhaps we should review Japan’s post-1980s stock bubble and how it has yet to return to those values now 30 years after their stock bubble deflated.

On the point made @10:15 regarding the gold and silver bullion bull markets to come. It is gold which should lead, silver will lag then catch and outperform (typical of the two when they are revaluing higher, e.g. the late 1970s, 2010-2011, 202?s).

Regarding the fiat currency denominated global gold price picture. Just because we have enjoyed relative fiat US dollar ‘strength’ over the last 5 years or so, does not mean gold is not technically set up for a great decade to come the 2020s.

Silver values stand to become the coming beneficiary of this emerging global gold bullion bull market phenomenon.

Speaking to that point @10:20 How the price of gold has been often breaking it denominated price records in almost half its fiat currency valuations throughout the world.

The now 100-year low values of commodity prices versus the DJIA is going to revert likely in the decade coming. Peak and multi-generationally out of whack asset class valuations tend to revert and overshoot the other way in reversing cycles. So place your patient precious metals and commodity bets. 

Once we get to and boldly clear $2,000 oz gold in fiat US dollar values, that is when big institutional money will begin coming into the precious metals and commodities sector.

Gold typically leads commodity bull markets. It will likely be the same case to come.

It is a documented fact, foreign central banks are betting in and thus moving commodity and interest rate derivatives ongoing. We will see in Jan 2020, if the CME Group will continue encouraging foreign central banks to come into our financial and commodity price discovery markets, and move prices around according to what might potentially best suit their agendas.

On the topic of when to sell silverthat related SD Bullion blog post and accompanying video covers major points just past the 2-minute mark. To sell silver bullion is about as easy as buying silver bullion. The question of course as to when might be best in terms of timing is the hard part.

Do keep in mind, I was only referring to some of one’s silver position when selling silver bullion. It is akin to dollar-cost averaging when buying bullion, you neither sell nor buy a position all at once. Merely acquire, maintain, and eventually sell-off as it gets to fair and likely overvaluations later. If you live in and under a full fiat currency regime, it is mathematically proven to be prudent to have some investment position allocated to bullion (learn how much bullion has been best in terms of risk-reward over a nearly 50-year timespan).

Record Silver Price Highs in Real Inflation compounding fiat currency context

SILVER SHOWS us Just How Much our fiat US Dollar loses value on a Compounding Basis 

On the point of crazy things can get in past record silver price highs. If you go to that link, scroll down and have a look at that Shadow Government Real Inflation data chart looking backward. The value of silver’s 2011 price high in late April is already debased to a near triple-digit silver value measured in today’s fiat Federal Reserve notes. 

In other words, we are basically guaranteed to see triple-digit fiat USD silver prices per troy ounce at some point in our lives (i.e. looking out multiple decades from now).

The Federal Reserve and Federal US Government are probably looking at the median Baby Boomer’s lack of retirement savings as a National Security issue. 

We can expect the Federal Reserve to double their balance sheet to over $8 trillion early this coming decade, as we prop up and Japanize our financial markets further. If that does not give you confidence, well you are not alone.

Before you go, if you have not yet, pick up our free SD Bullion guide by email now.
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James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...