Could silver double in price because of... Apple?

Summary:Resource specialist and editor of Real Asset Returns thinks that Apple's demand for industrial silver in China could push the price of silver to over $40 in 12 months.

A one-year chart of silver, which is down down almost 40% in a year - Jason O'Grady

Monday Morning's Peter Krauth thinks that the price of silver could double over the next 12 months, in part, because of Apple. I took particular interest in Krauth's article because its the intersection of two topics that I've been following for decades: Apple and precious metals. 

In addition to my (possibly unhealthy) obsession with Apple, I've been a coin collector/Numismatist for even longer. I got my first set of proof coins at age seven and have loved coins ever since. In 1999 the U.S. 50 State Quarters Program in rekindled my love of the hobby and with it a fascination with precious metals, specifically gold and silver. I digress.

Above is a one-year chart of the price (per ounce) of silver. As you can see, silver's down almost 40 percent in a year and way off its peak of $47.84 in April 2011. 

Back to Krauth's take on silver vis-a-vis Apple. In his article, Krauth says that "Apple is giving us some surprising indications that the demand for silver is much higher than its current price would have us believe." He connected some dots and linked January's 10 week delay of the new 27-inch iMac to a possible shortage of industrial silver in China. A theory supported by silver commodities analyst Ted Butler. 

Krauth thinks that Apple is just one indicator that silver could double over the next 12 months. Among his other reasons are huge silver premiums and record silver sales by the U.S. Mint (in the first three months of 2013, the U.S. Mint sold more than 15 million American Silver Eagle bullion coins.)

If you're a silver bug you can read the rest of Krauth's analysis at Monday Morning (free email subscription required).

Topics: Apple, Hardware

About

Jason D. O'Grady developed an affinity for Apple computers after using the original Lisa, and this affinity turned into a bona-fide obsession when he got the original 128 KB Macintosh in 1984. He started writing one of the first Web sites about Apple (O'Grady's PowerPage) in 1995 and is considered to be one of the fathers of blogging.... Full Bio

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