Silver Expected To Drop ?

The gold/silver ratio has been hanging around 53 for the last several weeks. (http://www.kitco.com/market/) shows the ratio now is 53.1 which is a fairly normal ratio recently.




50% seems a little high to me. However, if the rest of your funds were scattered around other hard assets (property, collector cars, etc.) a silver hit would probably not phase you as the other hard assets could be rising at the same time silver is falling. Also, if silver were to fall to the historic lows, the economy would be robust and the value of the silver would be offset by other things like overtime instead of short weeks.

Looking 40 years down the road, silver and other hard assets will undoubtedly keep up with inflation whereas the same money parked in a bank would be essentially worthless in 40 years.

I have always kept only a minimal amount of money in a bank, only enough for monthly expenses. The rest has always been tied up in some sort of hard assets with PMs only being a tiny fraction. Personally I prefer hard assets that are easy for me to dispose of when I need cash. Basically I use hard assets as a bank wherein I can "withdraw" them any time I need cash and wherein I can "deposit" more hard assets as I get them, usually far below the "bank" value of the assets.

Even though I hold PMs as a portable insurance policy, I also view them as assets I can "withdraw" from my "asset bank" when I need cash. And when I have excess cash, I can buy PMs below market and "deposit" them in my asset bank for future withdrawals.

Is that always profitable? No. However, if I sell something at say $500 that I paid $700 for and then am able to buy it back at $300, I have lost nothing. In fact, I still have the same asset plus I have $200 in this scenario. Even selling at a loss is sometimes better than not selling at all.

That is one of the hardest concepts for anyone to grasp. It took me years before I really understood that I could always make money even when I sold at a loss. And once I was able to grasp the concept, I was able to run circles around my competition in down markets, making lots of money while they were losing their shirts.

Anyone can make money in an up market. Very few can make money in a down market. My experience has been that in up markets competitors come out of the woodwork. In down markets most go back into the woodwork. I have been through four major down markets and have seen the same thing happen every time.

If you look at the PM market, you see people coming out of the woodwork making lots of money in PMs. The real defining factor will be how many of them can survive when the PMs eventually crash, whether it be now or whether it be in ten years.

congrats on the good auction wins!

I'd actually like it if silver dropped some more--- then I could buy more.

Well, silver certainly seems to be dropping today! As of a few minutes ago, it had dropped over $1 to just above $31. I have no idea if this is the bottom for today or whether it will drop further. But I'm thinking it might be time to buy a wee bit more...

I'm with you, Barry and Merlin. It's just a question of time, guys. Might very well have a prime buying opportunity sometime in the next couple of weeks. Have dry powder, will travel.

My opinion, and you know what they say about opinions, is that silver should be about $25. Watch Dr. copper for a leading trend.

25 would be fine, good to see it finally broke 30 again today. Stronger dollar? I have heard 25 before, I hear it's a tight market so I doubt we see many sudden moves outside of regular repricing.

Now the question is how far will it go down and how long will it stay there, I'm guessing 27.50 by Friday and it will levelr out till after the holidays, and around late Jan you will see a sharp increse back to about $37. ( I have nothing to back this up just a guess so dont drill me about it lol ).