Silver Dips Below $30

The one good thing about silver vs. gold is that silver is used for industrial applications. This silver is not recoverable. So every time you upgrade your TV, cell phone, Computer or anything with electronics, that silver is gone for ever. In about 10 years silver production will not be able to keep up with the demands of industry. Until a new cheaper media is found, silver will become more expensive. Don't forget at one time there used to be gold in computers.

Check the historic price of silver for the past five years (click on the 5 years chart):

http://www.monex.com/prods/silver_chart.html

The only thing that can be predicted from watching silver prices is that the price of silver is volatile. Your theory is not necessarily correct. There was a huge drop in price in Sept 2011.

The only thing that you can tell from the chart is that if we had not undergone all this craziness in the economy silver would have naturally reached a price of $30 by now. If silver returns to where it should be it will drop to just above $20. We will be very lucky if we end the year at $28.

I'm sorry I don't mean to offend you because I'm new hear, but where is your evidence to support such a claim? I this just opinion or a prediction based on optimistic feelings?

Again I don't mean to be rude. Silver has been trending down since Dec of last year. Over the price trend is down and there seem to be no economic factors to support your claim.

Look at the 200 day moving average for silver:

http://www.kitco.com/charts/techcharts_silver.html

Seam the only thing that could trigger higher prices would be a catastrophic event. Economic collapse in Europe or war with Iran.

I'm also predicting silver in the $20; but whether you go by gut feeling or economic indicators, big players can easily tip the scales either way and no one but the banking cartels and maybe certain governments know for sure. I just hope it falls lower so my cost to buy will be that much less. When it was in the $40, I wasn't able to buy any silver at all. And that was a dark time in my life. ;)

yup I love low spot. it will come back eventually. I just got 5 troy ounces today for $115. its worth about 150 ( which I would have paid anyway)

My fearless prediction is a re-normalization of gold and silver prices. That means silver down to $15 per ounce or even a little south of there. My reasoning - purely emotional. It just FEELS like the crazy days in the early 80's when everyone was clamoring for gold and silver, right before the bottom dropped out of the market. Look at the chart at the bottom of this page: http://silverprice.org/silver-price-history.html

Will history repeat itself? I don't know, but I'm not buying any pre-65 sets right now. I expect to pick them up much cheaper in the not too distant future.

Thanks for sharing that thought, larsdog. I think it's prudent for investors to remember the irrational exuberances of the past.

However, the factors that contributed to the 80's PM bubble (attempted cornering the silver market, Soviet invasion of Afghanistan, S&L crisis, etc) are radically different from today where the gross fiscal mismanagement and reckless monetary policies of many Western governments are driving up the cost and demand for PMs worldwide.

PMs prices as a whole, and silver in particular, are heavily *influenced* by major players who have allegedly been working desperately hard to keep PM prices down. The sheer volume of naked short positions on silver is...incredible.

I do agree that these are "crazy days" for PM investors. But the likelihood that we're in some sort of 80's style PM bubble just doesn't jibe with the facts. There will be price fluctuations, and price drops, of course. I look at these as important buying opportunities. Until our government(s) stop their reckless printing of money and get spending under control, I don't think you're likely to see any "re-normalizing" of gold and silver prices any time soon.

Which is looking less and less unlikely as time goes by.



Some of us are already millionaires. We still do not know the future, though.



So with about a 50:1 price ratio of gold to silver, you are also predicting $750 gold? Seems a stretch.



These are crazy days for ALL investors! The markets are so distorted by gov and fed intervention that no one knows what the heck is going on at any given moment or what will be happening in the next 5 minutes. And the political types wonder why so many people are not investing these days. It would be obvious to them if they had ever been an investor.