Wealth Daily's 2013 Silver Forecast

Special ReportFirst and foremost, I want to remind you that the world will run out of silver in eight years with supply and demand operating at the rate it is right now...

Surely you're wondering what all this means for the future of the silver industry, but most importantly, you want to know exactly how high silver will surge in the coming year.

This report is designed to serve as a comprehensive guide to help you prepare for silver's “massive move” ahead.

Let's quickly recap events of 2012 that greatly impacted silver prices so we may more accurately gauge how high silver is headed in 2013:

Early in the year, silver received a big boost on Greece's austerity measures in February. At that time, experts were prepared for silver to easily hit $52 by 2013. People were — and still are — especially interested in these four silver-hot companies:

Hecla Mining Company (NYSE: HL) – Hecla recently announced the largest reserve and resource increases in the company's history. Hecla increased its silver resources by 13%, bringing them up to 281 million ounces. The company also increased its silver reserves by 4%, now at 148 million ounces.

1.

Cayden Resources (TSXV: CYD) – Cayden has completed a successful drilling project at the Quartz Mountain close to Fallon, Nevada, where workers were targeting a historic spot known for its silver, lead, and zinc resources. President and CEO Ivan Bebek reported it “is going to be a very eventful year for Cayden, as the company will be aggressively exploring both our Morelos Sur and Quartz Mountain properties throughout the year. We expect to be delivering significant results from the exploration programs in the coming months.”

2.

Silver Bull Resources (TSX: SVB, AMEX: SVBL) – Recently completed drilling projects reveal good news for Silver Bull (and all of you silver bulls!)... According to latest announcements, at least 80% of the drill holes intersected with zones of silver oxide mineralization “of over 30 g/t Ag, including 144 g/t Ag over 31 meters, 109.3 g/t Ag over 12.55 meters, and 89.4 g/t Ag over 36.25 meters.” Tim Barry, Silver Bull's President and CEO, is excited about the results and “looks forward” to publishing a resource update in the second quarter of this year.

3.

Abcourt Mines (TSXV: ABI) – Abcourt saw surging shares after claiming to intersect an extremely high silver zone in the western portion of the Abcourt-Barvue ore body in Quebec. The press release showed that the average grade ranged from “240.0 meters to 244.70 meters at 1,386.16 grams of silver per tonne (g/t Ag).” Results are greatly contributing to their reserves and resources, positioning Abcourt for a promising year ahead.

4.

Even before March, investors were desperately searching for safe places to store their silver: Singapore rose to the occasion and was voted the #1 place to store silver.

By mid-March, expert investor and billionaire Eric Sprott claimed that “this is the decade for silver” and masses flooded the silver markets for “safe-keeping” as Europe and the United States struggled to ward off a depression.

As Bernanke met and spoke with other Fed officials throughout the year, vaguely discussing how to stimulate economic growth and combat the jobs crisis, market reactions proved volatile. Even silver experienced some noteworthy dips as some people grew falsely optimistic about overall economic conditions.

Hubert Moolman, an independent gold and silver analysts who owns HGM and Associates and HGM Research, boldly asserted that silver was “likely to pass $150.” Moolman provided a detailed chart and explanation for that prediction.

In spring, silver bullion was regarded as the most affordable way to protect one's wealth with unemployment reaching epic heights. Investors visited sites like Kitco and First Federal Coin to get their hands on as much physical silver as they could afford; many were first-time buyers.

By summertime, some big-league silver schemes were exposed revealing high-end bankster fraud and at least 50 years of silver manipulation... Analysts used the fraud stories to confirm the belief that silver prices were significantly undervalued , over-subscribed, and over-pledged.

The Fed ultimately had to admit to defeat as they publicly acknowledged the need for QE3, suggesting that QE2 was not the success they had hoped for.

Just before the golden hues of summer disappeared, the Fed further destroyed the value of the dollar with QE3 and silver went ballistic. In one month's time, silver surged a remarkable 21% as silver futures underwent backwardation , exposing investors with to a rare opportunity to make serious money.

Supply ran dry as silver owners were unwilling to sell in anticipation of how the upcoming election would affect the economy and precious metals market. Silver immediately soared in response to the election results, gaining 2.7% the very first day after the election.

Fast-forward to present day, and we're still stuck in the wake of Obama's victory, taking all pressure off of gold and silver.

Fast-forward to present day, and we're still stuck in the wake of Obama's victory, taking all pressure off of gold and silver.

Investors have been urged by experts around the globe to buy silver while they still can.

Now, I don't have a crystal ball and can't tell you exactly what the rest of 2013 will bring... but I can tell you that sh*t has certainly hit the fan and things aren't looking good for us and our fellow Americans.

And I can tell you what you can do about it...

Why Bad News is Good News

I hate to be the bearer of bad news, but our government is going to be diluting the value of the dollar indefinitely and people are going to have to hedge themselves accordingly.

However, the bad news for fiat currency and the greater economy is actually good news for silver investors.

CMI Gold & Silver President Bill Haynes said he's seen “massive amounts” of gold and silver purchases in recent months. The U.S. Mint has been sellling out of silver coins almost as quickly as they become available. It suspended sales of it's 2013 American Eagle silver bullion coins a mere two weeks into the year.

The Royal Canadian Mint is in the same situation and started limiting sales in January.

This trend is picking up pace faster than I've ever seen...

Investors holding out on the economy and sitting on cash are finally seeing the light. They're kissing their worthless dollars goodbye and going for silver and gold instead.

And I'm not just talking about individual investors here— I'm talking about central banks, too. The pressure is on to prepare for all the uncertainty surrounding the fiscal cliff; people are afraid, and they don't have a lot of options.

Iran, the UAE, and nations in the Middle East have already smuggled $1.4 billion worth of gold and silver to avoid Western sanctions and cushion Iran's central bank. This is an international issue...

Investors and central banks alike are preparing for the implications of global currency devaluation and other unforeseen economic crises on the horizon.

Let's Get Technical

Take a look at this recent Dow chart dating back to 1900 (click to enlarge):

Metal expert Hubert Moolman says:

So, the peaks and troughs, as presented in the above charts, are the manifestation (in visual form) of the debt-based monetary system causing paper and related assets to rise, while suppressing silver. Another way of looking at it is that the debt-based monetary system is fueling speculation in paper assets by using energy diverted from precious metals.

Silver (like gold) stands in direct opposition to the current monetary system (they are inescapably linked). The fall (and falling) of this system is the rise of silver as money; therefore, massive increases in what silver can buy in real terms.

Extracting data from these charts and following up with the gold/silver ratio charts, some concise conclusions have been made...

According to Moolman, silver “appears to have broken out of the pennant or flag-type formation, and could now finally be setting-up for a massive rise in price. We should, however, be very watchful, due to the fact that we are at a critical area in price and time. There is a big threat of deflation, but, in my opinion, it is this very deflation (brought about by the collapse of the debt bubble) that could be driving silver prices higher.”

Set Fear Aside, Safeguard with Silver

As you prepare to safeguard your own wealth, you should have some firsthand knowledge and insight.

I'd understand if you are worried about silver's historic tendency to possess some volatile characteristics. In the past, this has been true. However, we truly are in a unique situation and statistics prove that “silver prices have delivered the best gains since 2002” when compared with other commodities, according to Lloyds TSB.

As long as Obama is manning the fort in our nation's capital, you can expect this phenomena to remain true. Silver prices will rise throughout Obama's second term, and if Congress doesn't roll up their sleeves and tackle fiscal issues, you can bet those rising prices will quickly surge...

Since Obama won the presidential race in 2008, silver has launched prodigiously. Silver prices hovered around $10 just before Obama was voted in office the first time (October 2008); today it's more than double that.

Wall Street's post election sell-offs have heightened the appeal for precious metals, foreshadowing a strong year ahead for both silver and gold. Silver Wheaton CEO Randy Smallwood estimates silver will climb 47% in 2013.

Smallwood and other silver experts are preparing for silver to reach the $50 mark as we embark on a dangerous path of QE to infinity and beyond.

Silver is particularly interesting to traditional gold investors right now because sales are outperforming gold sales! In fact, silver sales were recently reported to be 50x higher than gold.

Because silver is cheaper than gold, it's more desirable to investors on a budget. The surging demand creates a supply squeeze that will inevitably push prices up rather sharply all in due time, leaving early investors thankful they stocked up before this historic climb pans out.

Silver's Practical Side

As you know, industry is always evolving. This is also good news for silver. New industrial uses will keep silver demand in check because no matter how volatile the investor front may be, hospitals, energy companies, and electronic companies will always need silver in their production line.

Meanwhile, nearly all the cheap silver has run out. Mines are having a hard time keeping production up with demand as the uses for silver are growing exponentially each year:

Economics 101

If supply decreases and demand remains unchanged, prices go up. If supply runs out, you can no longer sell the product, making it even more valuable in the eyes of the beholder and the product-less consumer. Bottom line: prices appreciate.

According to metal expert Luke Burgess , "Despite the lack of global stockpiles, new technology will continue to discover more industrial applications for silver, putting a further strain on world supplies."

Right in line with this assertion, the Silver Institute predicts silver demand for industrial purposes will increase by 36% by 2015.

This is especially good news for two silver-related companies: Silver Wheaton Corp, a silver streamer, and Hecla Mining have profited quite substantially due to silver's recent price gains. And profit they will continue to do... at least, until supply runs dry.

Experts warn that may be sooner than you realize. And you don't want to be kicking yourself ten years from now for the investment opportunity still available to you right now...

Moral of the Story

I don't envy Mr. Obama one bit right now, and I definitely don't envy those investors who are missing out on all the lucrative silver gains that lie ahead for 2013 and beyond.

Traditionally, gold has been the No. 1 safe haven. But I firmly believe it's just as important to invest in silver right now.

Until Western governments can more feasibly control the debt crises, precious metals will rise.

This may be “the lost decade” for investors, but you don't have to lose it all if you plan ahead of time.

Keep in mind, the longer you wait, the more money you'll miss out on. If you're afraid of the risk, I encourage you to consider the risk associated with fiat money.

The fact of the matter is many investors are already wildly bullish on silver — just one more factor will that will help push silver to $40 in 2013, with a closing price closer to $100 (without major financial reforms to our economy along the way).

If our financial situation becomes any worse, it's perfectly reasonable to anticipate silver hitting $150 or more by 2014.

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