Posted on 06/01/2006 8:10:31 AM PDT by Grampa Dave
Ah, in other words, you have no response. Back to your comic books I suppose.
So you're saying that you're not engaged in speculation? Hmm, and I thought your constant harping about how silver's going to go to $20 an ounce by year's end was about your expected profit. Perhaps I was mistaken.
And, incidentally, you have devoted an enormous amount of emotional and psychic energy to demanding (and most rudely, at that) that I recalculate my rough estimate of your potential gains based on your claimed costs instead of my experience. (FYI, I was there for the Hunt brothers' effort to corner silver, and stayed off of that train wreck, and I bailed out of gold at a shade over $730, missing the peak, but locking in a large profit as opposed to eating a loss like the folks who bought my gold most likely did.) Not for you the simple "you're wrong, here's my expected (or actual) gain, so I'm making money, and you're not." No, Sic Luceat Lux has to engage in a great deal of bombast and insult, and then demands to be validated. I obviously struck a nerve.
Now, as a medically-retired cop, I can tell you that when someone has had a nerve struck over money, things are most likely going to get interesting. So, please, by all means, continue to amuse me.
Where are your supporting facts Pale Horse? Produce them without feeling cornored please, thanks.
***
PaleHorse unsupported fib:
"There are extremely high inventories on hand--"
(my post #292:
"A worldwide silver shortage of 21.2 million ounces was reported last year! Private and government stockpiles are dwindling in response to this huge shortage. The U.S. Government’s silver reserve stockpile, a total of over 2 Billion Ounces, has been completely depleted!"
***
Urls/something/anything -to back up your fibs/statements- where are they?
I'm quite hinged. I just don't care to go back over previous posts and redo them in a way that personally pleases you, unless you're willing to pay for it (and I charge very high prices). You, on the other hand, have grown increasingly unhinged. Almost as if there's something more than a mere disagreement about whether silver's going up or not.
Additionally, I generally don't accept claims of "shortages" from professional silver shills (such as the one you quoted) intent on getting people to panic and buy more silver. Those are not "facts," they are "advertising." Advertising may contain facts, but they are frequently presented in a misleading, emotional fashion. To wit:
The U.S. Government’s silver reserve stockpile, a total of over 2 Billion Ounces, has been completely depleted!
That event happened decades ago--back when I was a teenager. It's why we don't use silver coins any more. It is a "fact," but it is presented in a misleading fashion.
A dramatic insult? Maybe if you're an idiot. That comment is a common humorous turn of phrase on the shell game played with inflation numbers.
As for devaluing 98.5%, it may be dramatic, but a fact it is.
BTW, it's common courtesy to ping those whose comments you are discussing, I would add, particulary if you're whining about them...
Unlike gold, silver is produced to a significant extent as a secondary ore product. As a result, the silver market supply is somewhat decoupled from silver market demand. Because of this, the silver price moves somewhat irrationally on the surface and with a different behavior than gold.
I wasn't aware that silver was vanishing into nothingness. It isn't, of course. It's just moving from certain designated "stockpiles" to other owners.In case you didn't know, silver is consumed in addition to be invested in. Currently it's consumed at a rate ~75-100 million ounces a year higher than it's extracted. The difference has been being made up by those stockpiles you eagerly tout as a negative toward investing in it.
That event happened decades ago--back when I was a teenager. It's why we don't use silver coins any more.
Decidedly untrue.
"In 1965, it appeared that in less than two years the Treasury would effectively lose control of the price of silver. If silver had been allowed to rise above $1.40 per ounce, the silver content of U.S. coins would have been worth more than their face value, causing them to disappear from circulation."
The Treasury wasn't losing control of the price because they didn't have enough of it, they were losing control of the price because currency was being issued in excess of what was there to back it.
"In the early 80’s, the U.S. government’s strategic stockpile of silver was locked in by law at 139.5 Moz. Congress has since authorized legislation to dispose of these stockpiles. In late 2000 the U.S. Defense National Stockpile Center delivered its remaining stockpile of nearly 15 Moz to the U.S. Mint for coinage programs. Since 2001, the U.S. has had to purchase silver for its coinage programs from the open market. This has boosted silver consumption by 1% annually."
Both quotes are from the Silver Users Association, a decidedly anti "silver bug" group whose primary desire is to see the price remain low.
The quote I was responding to said that the stockpile was two BILLION ounces, and it hasn't been anywhere near that since I was a teenager.
Good information, thank you.
All things considered, there's a hell of a lot less and it's being used at a rate higher than extraction. A buy signal in and of itself aside from the precarious position of the dollar...
Thanks for an informative post and I agree with what you say. There are shifts and transformations in the international monetary system - and this is inevitable. History never stands still.
To the factors you mentioned, I would add the Russian govt's policy to maintain gold reserves. Because they run a trade surplus, they are obliged to keep increasing these holdings.
Gold and silver up a bit on the Asian market.
The Russians and their gold reserves are definitely getting a lot of press lately. The Chinese are making similar noises. Worldwide gold reserve and petrocurreny adjustments make one go Hmmm.
I furled your FReeper home page as a potential patent attorney.
Todd, I still have all of my above silver bars -do the math please; how am I doing/ how ingnorant (sic!) am I?
Well, since I was tweaking goldbugs and you're talking about silver I'd say you at least have a basic reading skills problem. Beyond that it looks like you paid an average of $10.26 an ounce (before commissions?) for silver that closed at $10.27 an ounce on Friday. Yup, you're kicking some butt!!
Well, guess what? You're incorrect again. You, as was the case with another poster, will have to redo your figures. Reason being, when silver hit that comfortable low of $9.64 a few days ago, I bought two (2) more 1000 oz silver bars. Nice huh. :)
[glad I can sit on all this silver - for a few years if need be/never put more then 15-20% of assets in one area of investment - - ya know]
Wow, you're a trading genius! You still didn't explain why my goldbug tweaking got such a brilliant silverbug's panties all in a wad?
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