"Holy Moly... what's up with Silver?"
Posted on 12/28/2010 2:07:47 PM PST by mikelets456
Wow... I only bought 30 - 40 oz of Silver as a hedge against inflation or if all hell broke lose. I can not believe it blew past $30 Oz and shows no sign of stopping....or perceived that way. I keep reading about a 16:1 ratio of Gold to Silver on this planet. Does that mean Silver could go for around $100 per ounce when all is said and done? Are more industries using Silver, people investing in it or the dollar dropping like a rock that is causing the rise? I assume all three but I would like to hear from people that have a good insight on Silver as i have only been at this for about 1.5 years. I thought I was stupid for buying in at $16 per ounce. Is Silver still a bargain?
Obama, and Bernanke.
January 3 is when all the action in metals will begin (due to tax issues).
Silver isn't going up. The dollar is going down.
Hussein and The Ben Bernank along with The JP Morgue. Welcome to Zimbabwe bitchez. Keep watching the plasma idiot tube which keeps hussein in power.
Silver is becoming rarer and rarer.
1. JP Morgan is covering their shorts
2. Deterioration of the dollar
there’s two reasons. there are a few more, but those are biggies.
"Holy Moly... what's up with Silver?"
Also....JJC (Copper) has been a steady climber for quite a while. Somehow China has a stranglehold on the Copper market and I see it going higher.
I sold SLV today because it has pretty wild mood swings, and I figure I can buy it cheaper in a few days........I hope. Copper isn't as moody
I’ve been waiting to buy hoping it would get below $29. Now I’m afraid if I buy it WILL go to $29. I guess I’ll wait until Dec. 31st and see what happens.
Sorry, you have it wrong, Silver hasn’t climbed the dollar has dropped, instead of saying Silver is 30 bucks an ounce the correct thing to say is the dollar is only worth 1/30th of an ounce of gold.
I am setting my “buy” at ~26.......but sometimes I turn too emotional and pull the trigger at the wrong time.
I really don’t think it will get as low as $26. Then again, what do I know? It’s all a crap shoot.
I would keep some pretty tight stops on SLV. But, I would not sell any physical silver or gold yet.
I trade the paper, and roll the profits into coin. Has worked alright for me over the past six months or so. Just dont get greedy.
Today just seemed a little nutty. Methinks some of the big boys have the week off or something.
But DURING the crisis, ounce gold pieces aren't so good. They are too valuable for everyday commerce. You won't find anyone who can give you "change" for a 1 ounce Gold Eagle or Maple Leaf. Also, anyone showing that kind of wealth is "rich" and could be a target for robbery and fraud.
Trust is also in short supply during a currency crisis. People will be making "gold pieces" from plaster molds and junk gold jewelry and lead from their car batteries. Nobody will trust gold unless they test it, and if they only have test materials to satisfy themselves that you have 14K gold (like junk jewelry), then you'll get 14K price for a 24K gold piece (losing nearly half the value in the transaction).
Silver (in ounces or in 90% Silver pre-1965 US coins) will likely be a better mediumm of exchange DURING a crisis. Also, junk gold jewelry (rings, chains, necklaces in 14K) will be the true "Poor man's gold."
When precious metals rise, historically, the ratio of gold to silver prices falls. It gets closer to that 16:1 ratio of scarcity. Right now it's around 50:1. Last year when you bought silver at $16/ounce, it was more like 70:1.
There's a good chance that gold and silver will continue to rise due to monetary policy. I would not be surprised to see $50-$75 silver by this time next year, and possibly $2000+ gold. Of course, that's just some guy on the internet guessing. It could be $8/ounce silver and $300/ounce gold sometime in the future as well.
Silver is less attractive for an investment because of the fees, discounts (selling) and premiums (buying). In absolute dollars, it costs nearly as much to store, protect and handle ounces of silver and silver coins as it does to handle, store and protect gold coins. But as a percentage of the value, these costs are much higher.
Try to sell silver ounces today to a dealer or coin shop. You'll find opening offers of $20/ounce or less for bullion pieces and $14 or $15 per dollar of face value for 90% coins. That's with silver at $30/ounce (which equates to $22-$24 per dollar of face value for coins). On the other hand, you're often lucky to buy at the "spot price" of $30/ounce. During rising prices, buying for "spot price" is about the best deal you'll usually find. During stable or falling prices, you'll often find you have to pay 10% or more over "spot price" for silver in small lots.
Still, as insurance, especially for use during a crisis situation, silver coins and silver ounces (rounds or bars) are good insurance. Just realize that the price has to nearly double (again) before you really start making money after fees. So as an investment, it's not great. It's more valuable for peace of mind as insurance.
Oh, and the biggest historical industrial use of silver is photographic film. That's a rapidly shrinking market. There are other uses, but for industrial use, demand for silver is not in high demand. Most of the demand now is speculation and distrust of all paper currencies.
I think the whole point is when a dollar drops to no value you’ll have something to “buy” with. Then again, if that happens will there be anything to buy?
Metals should do a ‘hockey stick’ on Jan 3.
The buy window will be short, unless Bernanke has a coronary.
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>> “IMO, Gold (in ounce increments) is for preserving some wealth across a TSHTF scenario. After a currrency crisis, Gold will hold significant value. Hopefully near the value you used to buy it before the crisis.” <<
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That’s why we have two sticks of Eagle ‘dimes’ in addition to the maples and Krugers. Got them way back at $287/oz.
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Plane tickets
I keep reading about a 16:1 ratio of Gold to Silver on this planet.
The ratio hasn’t dropped much below 50:1 for generations.
Not that there might no be more room for silver to climb more than gold. But if I were looking to buy some of both, I’d buy more gold when the ratio is below 50, and more silver when it’s above.
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