Silver might have tanked recently but famed City chartist Robin Griffiths thinks it will go up ten-fold in the next few years.
Likewise he thinks gold, which has wobbled of late and currently trades at around $1,500 an ounce, could hit $12,000.
However, investors will have to act quickly. Griffiths thinks the bull market for gold "will all be over by 2015".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Stints at HSBC and Cazenove have made Griffiths one of the City's best-known technical analysts. He relies on technical analysis of price movements to predict future values.
His approach led him to predict the downturn in 2008, because "they come in cycles". That might sound simple but it was something many in the Square Mile and Wall Street seemed to forget.
Griffiths thinks both gold and silver will benefit from loose monetary policy and 'money printing' in the West. In an interview with King World News, he acknowledged that both markets had been volatile recently but urged investors not to be "wobbled out here because of a few champagne bubbles".
Elaborating, he said: "You want to be able to stay with and add to your long-term holdings. Bulls [bull markets] are very successful at wobbling people out at the wrong time".
As an "absolute minimum" Griffiths thinks gold will hit $3,000 per ounce. How much higher it goes above that "depends on how aggressively paper monies get printed from here on in".
Pointing to the Fed's decision to increase money supply through rounds of quantitative easing, he warned that Ben Bernanke is "trashing the dollar". The result will be that the dollar is no longer "the main reserve currency on the planet".
In the future trade will be "done in mixes of renminbi, rupees and baskets, and the baskets of currencies will need to be weighted by something can't be printed like gold".
-
Tesla seeks approval to supply electricity to UK homes – could it disrupt the energy market?Tesla has applied for a license to supply UK households with electricity, but taking on the biggest providers could prove challenging
-
Most Brits unaware onshore bonds can help beat inheritance tax – here’s howA little-known perk of certain types of bonds can let your loved ones off the hook when it comes to inheritance tax – but two-thirds of people have never heard of them
-
Can Donald Trump fire Jay Powell – and what do his threats mean for investors?Donald Trump has been vocal in his criticism of Jerome "Jay" Powell, chairman of the Federal Reserve. What do his threats to fire him mean for markets and investors?
-
Freetrade’s new easy-access funds aim to beat top savings ratesFreetrade has launched an easy-access exchange traded fund (ETF) range - here’s how the ETFs work and how they compare to the savings market
-
Go for value stocks to insure your portfolio against shocks, says James MontierInterview James Montier, at investment management group GMO, discusses value stocks and slow-burn Minsky moments with MoneyWeek.
-
What the return of the bond vigilantes means for investorsAnalysis The US Federal Reserve is dancing to the tune of the bond vigilantes, says Max King. Here’s what that means for stockmarket investors, the economy, and you.
-
Is gold cheap relative to equities?Analysis Dominic Frisby looks at the Dow-gold ratio and explains why gold is starting to appear inexpensive compared to equities.
-
Metals prices wobble on slowdown fearsNews The S&P GSCI index of 24 major raw materials has fallen back 9% since mid-June on growing fears of a recession, and copper has hit a 16-month low after losing 22% since a peak in early March.
-
The emerging-markets debt crisisBriefings Slowing global growth, surging inflation and rising interest rates are squeezing emerging economies harder than most. Are we on the brink of a major catastrophe?
-
Nature is healing – government bond yields are turning positive againAnalysis Negative bond yields are finally coming to an end as central banks change tack. But can the markets cope? John Stepek looks at what might come next.
