Posted on 10/16/2008 1:03:38 PM PDT by ovrtaxt
Paper silver and silver silver aren't the same thing.
Ping to you guys.
Just once again proving that P.T. Barnum was right.
Watch what happens to them over the next few months. BOOM!
I even took out quite a bit of paper money just in case banks or the ATM/credit card networks shut down. Not as good as a big hunk of shiney metal, but still better in an emergency than showing a bank statement to someone selling food or gasoline in times of trouble.
“Watch what happens to them over the next few months. BOOM!”
I take it BOOM means up?
Yep. Supply and demand is a very simple law. Hedge funds are dumping their paper positions, thus keeping the spot price low on the exchange. But the reality of what people are willing to pay for it tell the true story of what ACTUAL silver that you can hold in your hand is worth.
The commodity futures price and reality will equalize, or traders who need to take delivery will stop trusting COMEX- and that will be the end of the Commodities Exchange. Not likely to happen.
not a good sign for the economy.
That BOOM is the bursting of another investment bubble, this time in precious metals. The winners will be the dealers who sell this stuff to the suckers.
“Much of the recent decline in the paper value of gold, silver, platinum and palladium can be traced to the collapse of investment banks and hedge funds on Wall Street,”
what happened was a massive deleveraging because of the lack of credit
gold is money, not an asset. There is something clearly wrong with the $.
You pay for stuff at Walmart with gold?
“The U.S. Mint, which never ran out of supply before, has sold out of its 1-ounce gold and silver coins...”
When I read this, I did a quick check at their web site. They still have coins to sell.
The BOOM is a result of the dollar bubble bursting. Paper and ink can’t compare to something of intrinsic value. The properties of the metals themselves are what make them valuable. Paper is still paper in the end, when it doesn’t represent anything other than goodwill on the part of a bank.
no, but you don’t pay for stuff at walmart with the money you have in your bank either. That’s all 0’s and 1’s. People would rather replace those 0’s and 1’s with gold.
But you won’t actually receive them for months.
This statement has it backwards. The deleveraging is causing banks to panic over reserve ratios, which in turn is negatively impacting the availability of credit.
Deleveraging is causing hedge funds, etc., to sell their holdings to meet redemptions and obligations, which is causing commodities such as gold to fall in price, even though demand for physical gold is apparently still quite high.
doesn’t the lack of credit mean that it’s hard to continue going long on stocks, commodities, etc? I guess the answer is that it is also hard to short so it ends up in a wash
Probably true....plus the higher price to pay.
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