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 Replies: 24 / Views: 4,128 |
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Pillar of the Community
United States
3670 Posts |
I think the important thing is silver is gonna continue to rise in value over time regardless of the ratio....
The racquetball court makes me think owning some is not a bad idea....
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Bedrock of the Community
Australia
21788 Posts |
Silvrcrazy: In the most obvious sense, you are quite correct.
You have to buy or sell at the price of the market, no matter what.
I believe there is a thing called 'mob mentality' which financial advisors and market commentators call "market sentiment". This psychological factor has the ability to distort supply and demand. I believe you see some of this here in the CCF, as you should do, in the newspapers and in the electronic media. Human nature, I guess!
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Bedrock of the Community
United States
10982 Posts |
Quote:
An old wives tale says that au should be worth 16 times as much as ag, because ag is 16 times as plentiful. I agree it's an old wives tale. The 16:1 ratio was established for monetary purposes long before the true rarity of either metal was known. Here's an interesting link on the subject: http://www.silverinscripture.com/mo...hanGold.html |
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Moderator
 Australia
16849 Posts |
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I think there are a lot of people out there whose only exposure to platinum was on a high school quiz over the symbols for elements. I am not sure there a majority of people out there associate platinum with a precious metal. After all, Burl Ives used to sing, "Silver and Gold... ," not, "Silver, Gold, and Platinum." Then again, most music fans would know that "going platinum" with a musical hit or album is even better than "going gold". And your platinum credit card gives you even more benefits than your gold one does. So I think there is this vague consciousness out there that "platinum", whatever it is, is even better than gold. Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Pillar of the Community
United States
1285 Posts |
A couple years back (2007 to 2009 time frame) Pd (palladium) was given / categorized as a precious metal by some group in London. They are the keepers of what is considered a PM.
Most governments including the US DoD consider Pt and somewhat to a lesser extent Pd as strategic metal's holding small stock piles / inventory for an emergency (national security).
Pt and Pd have a delicate supply demand equilibrium at any given time and is worthy of doing ones own research.
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Pillar of the Community
Australia
2830 Posts |
quote: "About 22,000 tonnes if new silver is mined annually, and about 2,500 tonnes of new gold is mined annually.
Neither of these facts have any relationship to the current prices of those metals."
about 1,000 km south of where I live is a town called Tennant Creek. It is devoid of redeeming features, save and except for two -
fuel is available 24 hours/day, so when you get there, you can leave pretty soon afterward; and
the area around it has a lot of gold.
When gold prices are down, the mines become dormant, and people move away.
When gold prices rise, the mines re-open, and people return.
It's a small town at the best of times, but the population when the mines are operating is double what it is when they are closed.
Drawing a wider inference from this, I would say that the price of gold, or anything else which is mined, would be a major factor in determining how much is produced in a year. Of course, rising prices tend to dampen demand ...
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Pillar of the Community
United States
4008 Posts |
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After all, Burl Ives used to sing, "Silver and Gold... ," not, "Silver, Gold, and Platinum." LOL! Are there more than 5 of us on this site who even know who Burl Ives was?  |
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Pillar of the Community
United States
3670 Posts |
Most tell me I am a fountain of worthless information, and I have never heard of Burt Ives  to second that 5 guy theory, lol.... He may have worked Plat, pald, and rhodium into the song, if he had seen the charts for all three over the last five years.... Edited by Silverhawk74
05/16/2011 12:47 am
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Pillar of the Community
United States
1450 Posts |
I remember Burl Ives. For you young'ins,he is the voice of the snowman that narrates the "Rudolph the Red-nosed Reindeer" show they show about a dozen times each Christmas season.He had a very distinctive voice!
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Pillar of the Community
United States
3670 Posts |
O.K. Hock, that is a memorable voice....
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Valued Member
Poland
114 Posts |
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Like everything else, the market prices are a reflection of current supply and demand, and even then do not reflect the 'true' prices of those metals, whatever those may be. Even the experts cannot tell you that, nor I suspect, are they particularly bothered. In fact it is logically impossible to introduce any price that is "more true" than the free market one (provided that the market is really free). |
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Pillar of the Community
United States
4008 Posts |
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In fact it is logically impossible to introduce any price that is "more true" than the free market one (provided that the market is really free). - Murazor And that's a fact, folks. As my Dad was fond of saying, "Something is worth what you can get for it". What he didn't add but I will is, "... and not a penny more!". Market manipulation is an old old game that is still being played in spite of the rules against it. Of course, those rules tend to be more or less rigorously enforced depending on who is doing it.  |
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Rest in Peace
 United States
9104 Posts |
Which is why gubmint mandated prices always fail. There's either too much because people are producing to sell at too high a price (most price-supported foodstuffs) or shortages which are met by the black market at higher prices than "legal".
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Pillar of the Community
United States
4008 Posts |
An interesting point, Fred. Fact is, I have been looking for one single case wherein government interference in the free market EVER produced a benefit of ANY kind. Still looking but it appears to be a fools errand. Not that abject failure on their part dissuades them from continuing with it.  |
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Valued Member
Poland
114 Posts |
More on that topic: Murray N. Rothbard: "Man, Economy and State" and "Power and Market".
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Posted 05/15/2011 02:03 am
