You're probably aware that silver prices are extremely low right now — lower than they should be.
But what you might not know is that hedge funds and traders are positioning themselves to profit from “Silver's Doubling Effect” — a closely guarded Wall Street secret that doubles the return of silver.
I'll explain how it works in a moment. But first, let's talk about silver prices, how much they're going to go up, why, and how soon...
It's important to understand what's going on here because silver could shoot as high as $100 per ounce within a matter of months.
And a 400% rise in silver prices would translate to an 800% increase after applying Silver's Doubling Effect.
So follow closely...
Supply, Demand, and the Doubling Effect
As with all commodities, silver's value is governed by the forces of supply and demand.
And right now, there's a huge discrepancy.
Silver demand is soaring across almost every sector of consumption, but supplies are down.
Indeed, by the end of 2014, global demand for silver was near its highest point in 10 years — 1.07 billion ounces. Key demand drivers included coins and bars, which shot up 76% from the previous year, and jewelry, which spiked a healthy 10% in the same period.
Yet silver production isn't rising nearly as fast...
Silver supplies from recycling, mine production, and other sources have been unable to keep up with demand in recent years.
For example, the global supply of silver increased a mere 0.2% between 2008 and 2009. And 2011 saw a mere 1.4% increase.
Production picked back up to around 6% in 2012 and 4% in 2013, but this growth was offset by a large 8% drop in scrapped silver returning to the market.
The combination of rapidly growing demand and insufficient supply growth is creating an explosive opportunity that's going to make silver's next leg up a big one.
The upside potential — as determined with historical data, current sales, and silver supply-demand forecast information — is huge.
So doubling silver's return is practically a no-brainer, especially at today's low prices.
And that's where Silver's Doubling Effect comes in...
Here is a five-year chart for the price of silver:
And here is a chart showing Silver's Doubling Effect:
I'm sure you notice how similar they are. But if you look closely, you can see that the second chart posts massive gains compared to the one above.
The top chart is for the price of silver since December 2008; the second is for the investment I’ve been following extremely closely.
Every time silver prices increase, this investment pays investors more than double the gains silver makes.
Now typically, it's only high-net worth investors that take advantage of this opportunity. But you can get in on it, too. Just click here for the details.