"Holy Moly... what's up with Silver?"
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.
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
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.
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 $30/ounce. During rising prices, buying for "spot price" is about the best deal you'll usually find. During stable or falling prices, you'll often find you have to pay 10% or more over "spot price" for silver in small lots.
Still, as insurance, especially for use during a crisis situation, silver coins and silver ounces (rounds or bars) are good insurance. Just realize that the price has to nearly double (again) before you really start making money after fees. So as an investment, it's not great. It's more valuable for peace of mind as insurance.
Oh, and the biggest historical industrial use of silver is photographic film. That's a rapidly shrinking market. There are other uses, but for industrial use, demand for silver is not in high demand. Most of the demand now is speculation and distrust of all paper currencies.
I keep reading about a 16:1 ratio of Gold to Silver on this planet.
The ratio hasn’t dropped much below 50:1 for generations.
Not that there might no be more room for silver to climb more than gold. But if I were looking to buy some of both, I’d buy more gold when the ratio is below 50, and more silver when it’s above.
More for you to chew on to see the facts about the ratio:
Recent decades:
http://www.gold-eagle.com/charts/gegsr.html
Recent years:
http://stockcharts.com/h-sc/ui?s=$GOLD:$SILVER&p=W&b=5&g=0&id=p32100934640
Recent centuries:
http://lib.store.yahoo.net/lib/rarecoins/650-Silver-Prices.gif
I’m no expert, but I’d say silver could go to $50 in the next year. If I’m right, then silver is a bargain now. Good for you in getting some under $20! I did too, then recently bought more at $27.
Does anyone have any feedback - bad or good - on goldline?
bttt
Hope I didn’t make a mistake today. Bought 50 ounces of silver through APMEX.
Goldbug Ping.
The industrial uses are increasing, and the monetary/investment uses are increasing at the same time.
There is also a widespread belief that the silver market is manipulated to keep the price down. Somewhat like in countries such as Venezuela, when the government establishes price controls to control inflation, it only creates a run on the product and shortages, because buyers perceive they are getting something below the true cost, and sellers can't or refuse to sell at that price. Whether silver is manipulated or not, the perception is that $29 an ounce is "on sale", which is causing frenzied buying. Silver needs to find a new level that will once again put buyers and sellers in equilibrium. This will reduce buyers, and some owners of silver will be convinced to part with their metal, and the market will function more efficiently again.
$500/oz within 24 months.
Back to your sports Tv.
(Just in case you thought I discounted your perspective, Frantzie, I don't, I just have fun with your myopia)
