I also read a tweet today saying we may hear the Fed make their first solid stmt on a coming QE3 at tomorrow’s Fed Reserve meeting. If that happens, I have to believe that both silver and gold will really take off to the upside.
Silver is being held down on massive manipulation on the market by the trading houses and banks. It is a transparent scheme that will eventually implode.
Demand?
Both?
Manipulation/hoarding?
The price of silver is way easier to manipulate down. Plus, silver is seen also as an industrial metal whereas gold is basically only a monetary metal.
I actually just bought some more silver today. If it goes down enough I’ll buy some more.
I have found this website to be a very useful source of information on the economy, gold, and silver.
http://goldismoney.info/forums/
First I have to identify myself as not really a precious metals investor, just an observer without any qualifications beyond being particularly interested in silver as a more accessible precious metal for me. My understanding is that silver is still priced below the historical ratio it has with gold, and that it will eventually catch up to this, reasons for it (whatever those are) being the same. Buying now would later be more profitable than buying gold now, if what I’ve just described is true.
I think part of the slight downturn might have been what you mentioned: industrial use of silver falls when industry and the economy falls. I think it’s rebound tells that it’s use as a store of value overcame that. It was closing in on $50 an ounce just a little while ago. I could easily see it doing that again.
I would say it is a battle between those that are hit by loses and need to cover their margins and those that see a huge wave of inflation coming and think that silver will go up.
Gold is money.
Silver isn’t.
Simple.
One ounce coin for $1785 or 45 coins of silver, it is logistics in part.
So if we (or the world) are/is going into recession/depression the "precious" aspect wants to go up but the "industrial" aspect wants to go down.
So does anyone think there is a chance we’ll see a significant price drop in silver this time around like we did when the stock markets tanked from the financial crisis in 2008? Am interested in your reasons why or why not.
The world banksters are putting the fix on currencies and other things in order to try to keep the debt/imbalance regime going against the USA for their pocketbooks today (and their government-dependent family members). Their anti-free-market tendencies are going to come around to bite them very hard in the future (reactions toward nationalism and conflicts). During the years to come, we’ll probably see the devolution/deconstruction of globalism.
We’ll also continue to see ever more crazy political speech. Most who have large incomes are quite dependent on the debt regime of the various levels of government to funnel the inflating currency their way (killing the dollar). Those are the constituents who influence both political parties.
Sure, Silver is worth nothing, it will always be worth nothing. Those that can’t afford gold tried to make it worth something by stirring up a frenzy about it, but the smart folks realized, silver, ya, it’s worth nothing.
Futures and Margin Calls....great opportunity to buy it cheap relative to gold
Your best bet now would be .308 or .223.
Personally, I believe it is the likes of Soros and Buffet wanting to panic the “little” guys out of it so they are the ones that make the killing if you will. Silver is much easier to manipulate than gold. IMHO. I am not an expert in this by any means.
Ravenstar
IMHO, they have been producing and stockpiling Silver during all those decades when silver was very low. They have succeeded in capitalizing on Silver.
To answer your question, you have to look at and ponder more than a little about the history of silver and more than a little about the present about silver. If you do that, and it is isn’t a ten minute undertaking, you will learn something about what some call the “DNA” of silver. I’ll try to hit some of the main points as I myself see them, in no particular order, without delving too deep into any of them and without any guarantee that I’ll hit all of them.
Silver up here at $40 does not have much volumetric support. That’s one reason why it doesn’t seem to be able to hold it well. It does not “own” $40. IMO, silver is still proving that it can hold $35. And in my opinion, that is not proven. Technically speaking, silver may very well have an appointment with the mid $31’s. Forget not that during 2008, silver got cut almost in half, to $9.
If you look at long term charts of silver, during the early 2000’s, it had lots and lots of trouble at “round numbers”. It took many months to go from $7 to $8 to $9.....Today, those round numbers are sure to be more like $25 - $30 - $35 - $40. In quanta of $5, not units of $1.
Silver spent about a third of 2008 under $10 and really only left $10 behind in 2009. This is very much new territory up here (hence, why I say it has only modest volumetric support up here) I say that silver needs time in “rehab” to prove it can hang at these levels. In truth, if you look at the history of silver, it could very easily take 2 years or more for silver to advance much from here. So...you don’t have to load up the boat this week or tomorrow. It DID its parabolic thing in April and May. Now it needs time in rehab.
Many people believe that commodities (and most markets, in general) behave in 60 years cycles. Silver took a massive 35% hit in July of 1951. One of its greatest % dumps of all time. Coincidence?
Silver is not in any way the same kind of monetary metal that gold is. It just isn’t. We may wish that it was, but it isn’t. It is far more tied to industrial production, as is Platinum and Palladium, both of which are tied mightily to automotive catalytic converters. Palladium, today, got smoked. Platinum is actually trading at about the same price as gold. I myself have never seen that before.
Silver is not especially rare. By that I mean, if you have the money you want to spend on it, you could damage the suspension of your car loading it up with silver.
High silver prices causes lots of sterling and not-especially-rare semi-numismatic coins to get pulled out of the closet and thrown into the melting pot. Particularly in tough economic times.
Now, having said all that, you, generic you, should not buy *any* silver with the idea that you are going to buy it all at once, all at one price. If you want to be a LT holder of silver and hold onto it for a much higher price, that price is not going to occur right away. And if it did, silver would have to achieve a vastly higher price to overcome the punitive dealer margins/premiums on the physical metal. If you want to trade silver short term, SLV is vastly superior because it trades like a stock, with stock-like spreads and stock-like commissions.
So if you want to buy some, just buy some. Don’t buy all you want to buy all on one day all at one time. If you buy 10 ounces today and the price declines $1.50, are you gonna cry over that? Do you think 10 ounces might make a real difference in your life? What if it falls by $5?
Don’t overthink it. That’s as simply as I can say it. I have been telling all the folks I know who regret not buying gold lower: (and that includes me, because while I have been buying silver since $6, when gold was $265, I have not bot any gold under $1500) Just buy one ounce of the stuff and be an owner instead of a spectator.
AG is a two-faced, very interesting investment and normally trades 40-1 ration to AU. Silver as two-faced is industrial and a cheap man’s hedge against the dollar.
Silver is manipulated by Goldman’s, HSBC, and Morgan Stanley...the COMEX manipulates and cheats and if you want to track AG, look at Harvey Organ’s website every day and Saturdays.
Silver hesitated because both are due for a large correction sometime in the next 2 weeks