The arguments for investing in gold and silver grow louder every day. While the official Consumer Price Index pegs the inflation rate at 3.56 percent, there’s evidence it’s actually more than three times as high. John Williams at ShadowStats.com calculates the inflation rate using the methodology in place in 1980. According to his numbers, the CPI is actually around 11 percent.

That’s a harrowing figure considering that the average money market account currently pays 0.27 percent in interest (per Money-Rates.com). That situation has produced an environment where no one’s quite sure how high silver and gold prices can go (not that a lot of market analysts, writers and bloggers aren’t trying to puzzle out the answer).

Insane silver price predictions

Jason Hommel at SilverStockReport.com has a long-term price target of $500 an ounce on silver.

“Silver has gone up, now, from $4.15/oz. in 2003 to $40.87/oz. this week in the fall of 2011. Silver is going up by 31%, on average, per year, over the last 8.5 years,” Hommel writes. “Silver will likely continue to go up by 30% per year, or more, for at least the next decade, until silver hits about $500/oz.”

His logic? Currency creation is growing at 13 percent a year, and that leaves investors with few alternatives for protecting their capital. On top of that, the silver market is so small, Hommel argues, that even if 1 percent of U.S. money flowed into silver, the white metal could quickly spike to $600 an ounce.

Insane gold price predictions

Mike Maloney, the founder of GoldSilver.com, has made one of the most aggressive gold price predictions I’ve seen: $15,000 to $20,000 an ounce.

After getting approached by Rich Dad, Poor Dad author Robert Kiyosaki, Maloney spent two-and-a-half years writing his Guide to Investing in Gold and Silver. The research process brought him to a startling realization, he says: the current bull market in precious metals is actually the death knell of fiat currencies. And it’s not just the U.S. dollar that’s doomed, he says. It’s a global breakdown of the monetary system, and there’s nowhere else investors will be able to turn that gold and silver.

“I really couldn’t care less about gold and silver,” he says. “I don’t want gold and silver. It’s just in its cycle right now. It’s a stupid lump of metal that doesn’t have cash flow or spin off dividend yields. So I don’t want gold and silver. It’s just that right now, I don’t want anything else.”

And that’s the same conclusion he’s convinced more and more Americans will make in the years to come.

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