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Replies: 3,497 / Views: 124,477 |
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New Member
United States
1 Posts |
I love the smell of $50 silver in the morning.
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Moderator
 United States
198004 Posts |
 to the Community, V12Mech!
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Pillar of the Community
United States
1397 Posts |
Yes welcome and way to go for your first post, applause emoji. I think my first posts on the coin forums was like an introduction or something or maybe some coin pics or new thread or something but yeah, cool   I was watching an interview with a coin dealer recently that said a bunch of people were always calling for lower silver and each time it went lower he asked if they were ready to buy and still No. They laughed. He said it's probably going to be the same thing with all the one's saying $50 silver all the time, if it ever gets to $50 they still won't buy. Even at $40 they still won't buy. I think there's some truth to what he's saying. But on the Internet and forums there's also a bit of the trolling factor involved. And there's also a bunch of people that sold at $50 and $40 and just can't admit they messed up and now they wish it would come back down. No point crying over spilled milk. But what good is lower Silver in a recession, when people start getting laid off, and everything already costs almost twice as much? How much money will the average person have left over to stack silver? I'll be talking about the things that hurt Silver more than hurt Gold, so you might want to buy Gold instead, if you can afford to.
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Pillar of the Community
United States
1397 Posts |
Quote: *ugh*
Looks like the night crew dropped the ball a bit last night. Silver in the ~$55-56 range this morning. You might want to write a polite letter to the maniac in the middle east and tell him to stop flying sorties near the Iran border if he doesn't have intentions of escalating the war. And also tell his friend over here to maybe stop sending ground equipment over there if he has no intention of a ground invasion. Because the Market's are getting wind of all of this today and are about to start to "derisk" and by derisk I mean sell everything. A co-worker of mine got called up early this month. He's down in New Jersey, he said he's going to be loading up and packing up trucks and equipment to start shipping them out to Iran. Why do you need trucks for a war that's been on water and in air up to now? And that he and his team will be here until November and that's when they ship out. November.. Why in November? Now as far as the Market's are concerned I have been saying it on here for weeks. The market is being and has been held up by them for as long as they could. They can't stop the clock forever. The writing is on the wall. Just go back and read. Soon the impetus, incentives and motivation they had to keep the markets up, and to keep the charades going, will all be gone. And the chaos and mayhem will begin, especially in the markets.
Edited by Harry213 Yesterday 1:30 pm
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Pillar of the Community
United States
6965 Posts |
Quote: However the ratio measures relative valuation, stocks are historically expensive compared to metals. It does not mean that metals are guaranteed to outperform or yield higher returns. I haven't paid much attention to that ratio, but it's a almost certainly a symptom of unsustainable equity prices. I believe we are in a 2000-style bubble with overhyped AI, and I also think that ridiculously high oil prices are distorting returns on any measurements of the broad market. For years, there has been a trend to boost P/E ratios with stock buybacks, which in my mind is a terrible way to mimic profitable organic growth. In the next few years, we will see the invisible hand answer the question of how average people can sustain their current level of consumption in a slow growth, creeping inflation environment. It's going to be painful for a lot of companies, because all the shortcuts to boost EPS artificially in good times will also make losses per share look much larger in bad times, too. I don't know that we will see a PM spike like the financial crisis, though. That steep climb was driven partly from fear. I don't know how we could raise peoples fear of inflation and systemic financial risk to that level again, barring another COVID.
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Pillar of the Community
United States
6965 Posts |
Quote: or is it how Gold and Silver sometimes move differently even though the forces that move them 'supposedly' are the same. Yes, that's what I have never really researched. I know that silver has industrial uses, for example. I also know that gold can be more strongly influenced by central banks buying or liquidating large amounts. One of the adages that I've heard over the years is that in good economies, silver prices more closely track base metals, and in bad times, it becomes the Poor Man's Gold and tracks more closely with gold. It seems like understanding when the real separations happen could be a clue to economic movement, but I haven't yet encountered great reading material on the subject.
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Pillar of the Community
United States
2050 Posts |
Maybe the title needs to be updated to when will it $50, then $40, then $30? We should all be celebrating this buying opportunity.
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Moderator
 United States
198004 Posts |
Quote: Maybe the title needs to be updated to when will it $50, then $40, then $30? Nah. One should recall what it was like when silver ran from $50 to over $100!  Quote: We should all be celebrating this buying opportunity. When the coin vendors would get the memo. 
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Pillar of the Community
United States
1397 Posts |
Quote: I haven't paid much attention to that ratio, but it's a almost certainly a symptom of unsustainable equity prices. I believe we are in a 2000-style bubble with overhyped AI, and I also think that ridiculously high oil prices are distorting returns on any measurements of the broad market. Yes that is the main crux of the ratio, we are at unsustainable equity levels. We've been in an everything bubble for almost 18 years. Almost straight up. The 2 years after the 2008 crash was our last real recession. Then 2010 to 2020 was up, up, up. The 2020 covid crash was measured in days, then up, up, up. Then 2022 had a small recession after Powell raised rates due to inflation caused by Covid. That only lasted from January 2022 to around October 2022 then up, up, up. Then we had Trumps tariffs or 2025 liberation day that crash was measured in days also. The Iran war crash more like a selloff was measured in weeks then up, up, up again. All of those things are just small blips on the chart, nothing.. Problem is the up, up, ups are getting shorter and flattened out in August. So it seems we've sorta squeezed the last drop of ketchup out of the ketchup packet. Quote: For years, there has been a trend to boost P/E ratios with stock buybacks, which in my mind is a terrible way to mimic profitable organic growth. In the next few years, we will see the invisible hand answer the question of how average people can sustain their current level of consumption in a slow growth, creeping inflation environment. It's going to be painful for a lot of companies, because all the shortcuts to boost EPS artificially in good times will also make losses per share look much larger in bad times, too. They know they're in trouble. Traders and analysts and everyone that follows the market knows they're in trouble. The only ones that don't know they're in trouble are the uninformed citizens that won't see it coming. But this is also part of what that whole Trump accounts thing is. They're trying to nationalize stock ownership, from early childhood up. It's deeper than this but I'll just simplify it and put it in my words, someone has to help keep the ship afloat.
Edited by Harry213 Yesterday 4:45 pm
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Pillar of the Community
United States
1397 Posts |
Quote: I don't know that we will see a PM spike like the financial crisis, though. That steep climb was driven partly from fear. I don't know how we could raise peoples fear of inflation and systemic financial risk to that level again, barring another COVID. The way things are heading this would not be out of the realm of possibilities. Remember there's always the calm before the storm. Nothing happens right away it happens slowly. All the great crisis whether it was Covid or the financial crisis had their quiet calm periods before that. When everyone said everything's gonna be fine, don't worry..
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Pillar of the Community
United States
1397 Posts |
Quote: Yes, that's what I have never really researched. I know that silver has industrial uses, for example. I also know that gold can be more strongly influenced by central banks buying or liquidating large amounts. One of the adages that I've heard over the years is that in good economies, silver prices more closely track base metals, and in bad times, it becomes the Poor Man's Gold and tracks more closely with gold. It seems like understanding when the real separations happen could be a clue to economic movement, but I haven't yet encountered great reading material on the subject. Sorry I've been meaning to get back into this subject that you brought up about what is it that breaks the correlation between Gold and Silver even though the forces that influence them seem to be the same. That's true Silver relies on the demand from a good, strong, healthy global economy far more than Gold... Strong, healthy, growing global economy, higher Silver... Weak, stagnant, shrinking aka recessionary global economy, lower Silver.. Which is why for the life of me I can't understand the logic of some people, but I digress... Gold is used more as a monetary, financial, or investment asset than it is for industrial purposes. It's more widely held by Central Banks and as a hedge for stocks aka safe haven asset. So when you look at the price of Gold and you look at the price of Silver and then you see some geopolitical or macroeconomic news you might see one drops more or goes up more than the other. One must analyze the news event to determine what the implications are. Gold is more of safe haven than Silver. So in times when there is threat of War you'll see Gold go up more, or drop less than silver like today. Higher Oil is inflationary, it reduces consumption, that reduces production, creates recession, Silver goes down more than Gold because Gold doesn't rely as much on industry as Silver. Now the tricky part is understanding the relationships between these things both separately and together with each other. Because remember at first we had both higher Oil and the Iran War against Silver, then Oil didn't matter anymore for Silver.. Why not? These are the nuances. And if that ain't enough throw in the Dollar, is it up or down?, and interest rates, and bonds, and treasuries, and stocks, and whatever the government said on TV.
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Pillar of the Community
United States
661 Posts |
I'll consider stacking again when it's below $32.
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Moderator
 United States
109961 Posts |
wow, hadn't noticed that gold and silver went down that much.
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Pillar of the Community
United States
1397 Posts |
Quote: I'll consider stacking again when it's below $32. I think I'll wait until it's below $16. This way I'll lower my dollar cost average tremendously  Even the voices inside my head are saying don't be ridiculous Harry 
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Pillar of the Community
 United States
6020 Posts |
Another disappointing effort from the night crew as silver falls into the ~$53-54 range, which I believe is the lowest it has been since the big run-up started back in December of last year. And, yes, the original title of this thread that I started way back in last October is starting to seem eerily appropriate again. How low can we go... 
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Replies: 3,497 / Views: 124,477 |