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 Replies: 90 / Views: 7,578 |
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Bedrock of the Community
United States
10982 Posts |
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Unfortunately for this approach, the US dollar and economy are linked to each other. If the dollar collapses, the economy will not be far behind.
I hear you Ed. Thing is, we have been destroying the USD for years now. Devaluing the dollar is our only way out. The reason the USD doesn't look worse is most other currencies are performing worse! 10 years ago oil was $20/barrel, silver was $5/oz and gold was $300/oz. Where will they be 10 years from now? |
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Pillar of the Community
United States
4008 Posts |
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Thing is, we have been destroying the USD for years now. We absolutely have and I am wondering what it really did for us as a nation. Ever since the Fed came into being in 1913, the US dollar has been made cheaper and cheaper. Much of this is due to over-printing, cheapening the currency via dilution.  Quote:
The reason the USD doesn't look worse is most other currencies are performing worse! I agree. Being the best house in an abandoned neighborhood is not what most of us would call success, though. The paper Ponzi fiat scheme is staggering towards complete collapse. We see it all around us. This is a long drawn out process and not an event, so a lot of otherwise smart people are just not seeing it. Quote:
10 years ago oil was $20/barrel, silver was $5/oz and gold was $300/oz. Where will they be 10 years from now? At a guess? Higher. Perhaps a LOT higher. If the US dollar survives another 10 years I will be more than surprised... stunned speechless might be closer to my reaction. At some point it will become clear that our debt is too large to be repaid and that it will not be repaid, no matter how much we cheapen the US dollar. Our creditors will cease to lend us any more money to squander and the borrow and spend binge will be over. We are addicted to spending more than we have, so I don't really know if we can overcome this addiction on our own. Like a drunk in a bar, we may have to be "cut off" before we really get serious about solving our problems. I really would like to think that we could resolve such a problem on our own but I just don't see it happening. Politicians get rewarded based on how much money they spend and not on how much they save. Until that changes, the odds against a real solution look minimal at best. |
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Valued Member
 United States
141 Posts |
34.64 2 weeks after this post, wow have the prices changed, and fast
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Valued Member
United States
141 Posts |
At this rate, I think we are going to be seeing 40 dollar silver a lot faster than most think. maybe within a month or 2. I know it may seem a little crazy, but I dont think its out of the question the way the market has been going the past month. Also..
are you going to sell your silver once it hits 40?
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Pillar of the Community
United States
4008 Posts |
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I think some people think of investments as safer bets with bigger potential gains. I have heard comments like this before and they never make any sense to me. As an investor for many years, I know that safer investments virtually always pay less than more volatile and riskier bets. This is why riskier stocks can pay better than less risky bonds or CDs. It is the risk that we take on that results in the potentially higher payouts. They also have potentially higher losses associated with them. |
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Valued Member
United States
141 Posts |
a quick play by play, about 5 days later, silver takes a 60 cent drop, but then goes right back up 60 cents the next day. it seems as if the price could stabilize right below 35 dollars an ounce. I dont feel the pressure for silver to go over 35 dollars. Opinions?
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Pillar of the Community
United States
1374 Posts |
Rock on, or don't go on at all.
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Pillar of the Community
United States
4008 Posts |
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I dont feel the pressure for silver to go over 35 dollars. Opinions? Silver has traded in a narrow range of $27-28 for some time now and only recently broke out to the upside. It seems to be settling in around $34.50. This looks like another period of consolidation that stocks and commodities go through before moving higher. We may well be establishing a new bottom here at about $34 an oz. If so, once this has settled in for a bit, silver could well move higher. For the moment, though, it looks pretty steady. Perhaps another question is, "Is this the price to be buying more silver?". It very well could be. After moving up by $7, though, maybe it only looks too expensive? |
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Bedrock of the Community
United States
10982 Posts |
Reminds me a lot of September 2009 when silver had quickly gone from $14 to $17. Many were leary of paying $17/oz after the run up. Ended up getting close to $20 before '09 was over and there was no way I was going to pay $20 for an ounce of silver!
$35/oz will look cheap in a few years. Very cheap.
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Pillar of the Community
Japan
666 Posts |
I buy nice looking bullion silver all the time ... numismatic hedge on downside, silver on upside ...
the future of silver?! BRIGHT&SHINY!
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Valued Member
United States
141 Posts |
What about an impending crash? I'm pretty sure thats in the back of everybody's mind. What if you woke up one day and silver was 23 dollars an ounce...
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Bedrock of the Community
Australia
21788 Posts |
The Dow Jones Industrial Average (DJIA) has nearly doubled in price in the last three years.
I Google - Yahoo it EVERY day. Same for the All Ords (Australian) index.
Silver has done about the same, but it does not pay regular dividends.
I have a self managed pension fund, and there is NO tax to be paid on any income within the fund. Any pension payments withdrawn by me also attract zero tax.
Despite this, I still have about 5% of the investment mainly in numismatics, plus a tiny amount in PM's.
Edited by sel_69l
09/20/2012 03:28 am
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Pillar of the Community
United States
4008 Posts |
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$35/oz will look cheap in a few years. Very cheap. Indeed. If it does, it will not be the 1st time that this has happened. When I was a kid, GOLD was $35 an oz. Look at it now. Who back then would have thought of gold as a 50-bagger? NOBODY, that's who. Quote:
What about an impending crash? I'm pretty sure thats in the back of everybody's mind. What if you woke up one day and silver was 23 dollars an ounce... Well, let's think about that a bit. For silver to drop from $34 to $23, it would have to lose $11 in price or about 1/3 of its value. Could that happen? Maybe. Or is it more likely that we wake up one day and the US dollar has lost 1/3 of its value from the previous day? Which seems more likely? I know how I would answer this, having already seen the US dollar lose LOTS of its value. |
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Bedrock of the Community
13014 Posts |
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Or is it more likely that we wake up one day and the US dollar has lost 1/3 of its value from the previous day? Which seems more likely? I know how I would answer this, having already seen the US dollar lose LOTS of its value.
Yea but the dollar losing value is less noticeable in the sense that prices slowly climb as opposed to just flat out seeing this is now worth 1/3 less so mentally the silver drop has more of an impact |
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Pillar of the Community
United States
4008 Posts |
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Yea but the dollar losing value is less noticeable in the sense that prices slowly climb as opposed to just flat out seeing this is now worth 1/3 less so mentally the silver drop has more of an impact Yes, in most cases that is what happens. Of course, we're not in the past here, we are breaking new ground on a daily basis. If the US dollar were to lose World Reserve Currency status, for instance, losing 1/3 of its value over-night is exactly what would happen. The Chinese and the Russians are working on this and the other BRICs countries seem in favor of their proposals to simply not use the US dollar in their foreign trade. At some point, the Middle Eastern countries could jump on this same band-wagon and it will be curtains for the US dollar in international trade settlements. Without that need, there will be far fewer dollars required around the world and a lower need translates directly into a lower value. Although many financial changes move slowly, this is one that could and likely will move VERY quickly. PMs, however, will be immune to any such paper dollar problems.  |
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Replies: 90 / Views: 7,578 |
First Page
Posted 09/10/2012 8:36 pm
