Silver Price Predictions for 2012

2011 has been a rollercoaster year for silver. We have seen the price for one ounce of silver rise to a 2011 high near $50 at the end of April, only to crash down to the $30 level in May. Silver then recovered to around $40 at the end of the summer, only to crash again - with the rest of the market - down to around $32 by the end of November. What does this mean? It means that silver is volatile and for short term traders, the precious metal can be a trap for people who trade on emotions rather than logic.

In 2012, Everything crash. Silver. Gold. The Markets. The Global Financial System

The forecast for 2012 will not be pretty for silver, gold, the markets, everything. In fact, you can expect a global financial crash that will be 10 times worst than what happened in 2008. There will be no bailouts. Banks will fail. People will lose their fortunes. There will be riots on the street. And there may even be martial law in many countries.

For many, 2012 may be the end of the world

Many people - from religious believers to numerologist - believe that 2012 will mark the end of the world. More specificially December 21, 2012. That is date which the Mayan Calendar ends. What does this have to do with the price of Silver? Well, even if you don't believe 2012 will be the end of the world, many others will. And that means that people, and markets, will act irrationally.

That means that the price of silver will act irrationally. It is highly recommended that you do not try to time the silver market in 2012. You could see swings of 10% a day. People who trade futures and options on silver will be wiped out.

2008 was just a preview. The Financial Crash of four years ago was a rolling crash which started in China, rolled into the Middle East, Europe and Finally The United States. The U.S. Congress was able to essentially "Save the World" by loaning $700 billion dollars to failing and unstable banks. However, this time, there will be no bailouts because (1) there is no money for bailouts (2) Americans on the Left and the Right won't stand for the bailouts. That means that many banks will fail and the FDIC will not be able to cover all the money lost by depositors who will have to settle for IOUs.

Why Silver Will Crash With the Rest of the Markets

In 2008, silver crashed with the rest of the markets because silver has one foot in the world of global commerce and another foot in the world of precious metals. When the markets began to crash, people had to cash out everything in order to cover their leveraged losing positions. That meant that positions in silver had to be liquidated. This will happen again.

Silver Price Forecast for 2012. A Rally In the Spring. A Tense Summer. A Horrific Fall

Expect the price of silver to hover around the $35 level in January. The markets will probably remain strong after the usual Santa Claus Rally. By early March, you could see the price of silver hit $45. That's when people will start looking at silver breaking the all important $50. Much of that positivity will cause the price of silver to rally to the $50 to $55 level by Mid-April. And things will be looking up for the shiny metal.

The Tense Summer

By the summer of 2012, the American Presidential election will swing into high gear. Unemployment will still be high. Many Americans will still be losing their homes. And the negative campaigning on both sides will make it seem as though no one party will be able to address the problems of the floundering economy.

Waiting for the "Lehman Moment"

As the economy fails, many financial institutions will find themselves in trouble. And many of these institutions make reckless financial bets. One only has to look at what happened to MF Global to see how irresponsible Wall Street has remained. When word gets out that some banks are in trouble, panic will set in.

A Crash. A horrible, horrible crash

The September and October months are the worst for the stock markets. In those two months, the Wall Street crashed in 1927, 1987 and 2008. For 2012, expect the crash to come to all markets, and all commodities. As banks fail, expect people to panic about their live savings, selling all of their financial positions just to have cash.

December 21, 2012. When the real world crashes with prophetic "End of the World"

As the markets crash and people lose everything, the "End of the World" may seem like a reality. This will prompt government to proactivity tighten the noose around public gathering and even internet communications. This could cause even more chaos in the markets, including silver.

As the world "ends." As people run through the streets waiting for the sky to fall, use this as an opportunity to acquire silver on the cheap. Because this will be the last year you will ever see a "buyer's market" for silver. After the 2012 crash, Governments will have no choice but to hyperinflate in order to keep the system going. Marry that with a rush away from paper assets to hard commodities and the oncoming resource scarcity crisis and you have a perfect store for parabolic silver prices.

When to Buy Silver? Look at September and October

It is highly recommended that you stay in cash throughout the 2012 year. Don't try to play this crazy market. Government interventions, sudden market closings and wild swings will make it impossible to gain any short term profits. Simply wait for silver to drop down below the $35 level and begin to buy. When markets are crashing, when people can't sell their silver fast enough, you can buy at a bargain.

There are many silver bullion dealers online. It is highly recommended that you buy from an established precious metals dealer. It is also highly recommended that you avoid auction sites like Ebay. Ebay is filled with scam artists who send counterfeit silver to customers or nothing at all. And if you are ripped off you have little to no recourse.

Some of the best and most reputable silver dealers online at APMEX.com and BullionDirect.com. These are not "Fly by night" precious metals dealers. They have been around since before the precious metals boom and offer a huge selection of gold and silver with excellent customer service.

After the 2012 crash, governments will hyperinflate. And people will eventually lose faith in any type of paper money. That means that gold and silver will be king. It is important that you own the Gold and silver coins in your possession. The Gold and Silver ETFs can be vulnerable to fraud or other types of financial fraud that can wipe out investors. One only has to look at the $600 million dollars stolen from MF Global investors to see what happens to people who own their assets "on paper."

2012 will be a catastrophic year for the markets. Global financial systems will collapse. 2012 "end of the world" hysteria will sweep around the planet. And silver will crash along with all other assets. This will present the final opportunity to own silver at a discount. 2013 will be the beginning of the end for all fiat money and paper assets. Those who own Gold and Silver will own the world.