Analysts and investors are becoming increasingly bullish on silver as the summer winds down. As central banks around the globe are expected to bolster growth via new QE and related monetary policies, a silver rally appears to be inevitable.
For the past three months, silver held in exchange-traded products has consistently climbed its way up to a valuation of $16.2 billion, according to Bloomberg's data.
While hedge funds remain the least bullish in nearly four years, one has to ask if this is merely an attempt to control silver prices in a time when nearly everyone else is assuming that the allure of precious metals will only increase in the months and years to come...
If the Federal Reserve does follow through with further quantitative easing, all we have to do is rewind back to the years 2008-2011 and learn from the recent history to know what will happen to silver prices.
From December 2008 to June 2011, precious metals prices tripled on behalf of two solid rounds of quantitative easing.
Imagine what a third dose of easing will do to consumer mentality and the price of silver and gold. It's an unprecedented event for sure, but the prices have nowhere to go but up – and they're expected to do so rather sharply.