What Happens To Gold And Silver Next? Look Out Below?

Agree, Thq.

It's an interesting conundrum when deciding on the sell side.

Given the impossibility to know where prices are going to be in 6 months, 1 year, or 5 years, average cost selling (e.g., monthly or quarterly) seems like a reasonable approach.

Thanks for the update, Yup.

It probably makes sense to divest more upfront to free up resources to other markets. I always followed silver more closely than gold, until about a month ago.

Thanks YUP...I don't look much at the gold-silver anymore, moved into crypto's, and, the experience has been quite gratifying to say the least..I thought buying Bitcoin @ $320 awhile back was a big risk, and, wayyy expensive. Ether broke through $300 today.....$79 bucks seemed a big risk, and waaay too high. Best of luck to all, wherever you are. Stick to the top 10 list, and, pretty hard to go wrong.

everything has bubbles...10 days ago, every alt-coin plunged, but, came back to new record highs in no time. One MUST be careful, and make no mistakes on transfers, wallets, or, kapoof...my MAIN like for these(after paying the feds 5k in taxes on silver ming stock capitol gaind for 2016), is NO taxes(yet)...these are the "good old days", until the feds clamp down..hopefully, coinbase will win it's case against the IRS, but, the amount of money involved is so gigantic(total surpassed 100 billion recently), these dudes want their cut.
When I read about the "Big Boys"(Silicon Valley folks), stopping using cash, and using ethers to pay for venture capitol startups, I knew this was going to be where I wanted funds. Cash will be gone very soon, and, these electronic coins will evolve into safe, legitimate payment systems, many ARE now already.
After hoping, and hoping, and hoping my gold and silver would do a decent job for returns, I just gave up, after day after day, week after week, with gold going up, slowly, yet, SO many of my mining stocks were shorted, that was it. Yes, I still own quite a few, and, yes, they are long term holds, and, yes, they are all about 30% in the red, so, it sucks, but, if and when the time comes where I may double, triple my investment, when I cashout, 25% goes to the feds....NOT the case for alts. You cANNOT counterfeit a Ether Coin, nor, can you short the blockchain...not yet anyway.
I don't care what most say in here, I do believe the bullion markets are suppressed, and controlled by dark forces, too much proof out there to make it a "paranoia" issue, and, the new SEC director is a square dude, and has just hauled a Jr. trader into court for price rigging on silver, a huge blow to the shorters. Just gooogle this, and the list of big banks fined in the last 3 years is huge. Problem is, the fines mean nothing, and, are a tax writeoff. Being banned from trading surely is the answer, as is the death of "paper" future contracts, which are just that..paper, the vaults give NO guarantees in payouts, due to their fine print.
Physical is safe and good, don't get me wrong at all, I have quite a lot tucked away down at the local vault, for a rainy day.
IMHO, soon, the massive shorting of bullion will end, the process can only go on so long before something happens so big, and so catatrophic in the market, that, these people are forced to go elsewhere, and do something else.

Splat lol

as we had talked, gold and silver working on the ole break out higher, move lower price action for now.

Glad I am not a trader who is focused on this part of the market, silver and gold, for my time frame, are of ZERO interest.

I have been investing in gold for a very long time and the money was made when they finally stopped rigging the market when Bush was President and it went from 350 to over 1000 and that was primarily because the miners cost of production was going up just as fast as the spot price was. But now they are rigging the market again so there will be no break-outs worthy of wetting your shorts over for the foreseeable future.

So stop dreaming.

So why are we stuck at $1250? I have also learned in my years that physical gold is priced just high enough to keep the miners in business.. A price that covers costs, and a little profit and that's IT and baring any massive economical meltdown, that's all it will EVER be. If you look at miners average cost of production and assume a reasonable profit, guess what, you come up with $1250 per OZ. Until mining costs dramatically increase (which they wont until oil goes back through the roof) this is the new norm in price.

The biggest problem with the gold market ever really truly pricing gold in realistic terms is, there are more gold contracts (paper gold) being traded in a week than there is physical gold mined and refined in existence. This creates an artificial supply "surplus" in the investment market that will never allow physical gold to reach it's full value potential reflecting what would be an accurate value based on its scarcity. Until "fake" gold is no longer traded.. Expect the value per OZ we have now.

Silvers price is dictated by industrial demand and, like gold, the cost of getting it out of the ground. Miners stop digging if they can't make any money so there has to be a balance between a miners profitability and the demand. Since there is no single industry that consumes massive amounts of silver (like there is now with lithium for car batteries) the mines in production today will meet the silver demand for a very long time to come. Rejoice when you get a swing of $3, because that is as good as it is going to get.

The last thing that I am sure many of you know, is a lot of the swings in price really are not swings in price at all, they are nothing more than a reflection of the value of the dollar. If the dollar trades higher against other currencies, gold drops, if the value of the dollar drops, gold goes higher. But in reality, the VALUE of gold really has not changed, you just think it has when you convert your gold to dollars in your head or on ebay.

So considering all of this.. how should anyone invest in silver and gold?

When I want to invest in silver I buy uncirculated rolls of Peace dollars, Franklin halves, and Washington quarters. The reason I do this is even if silver becomes worthless the underlying numismatic value acts as a loss stop. I will still be able to sell a roll of Peace dollars for $500 regardless of the silver price. Now if silver were to get to $50 an ounce, my rolls of Peace dollars will have a silver value of $700 per roll plus whatever numismatic premium the market is willing to pay at the time.

When I invest in gold I invest in better date pre 1907 Liberty and pre 33 Indian Eagles. I am constantly amazed how I can pick up a PCGS MS63 Liberty Eagle with a population of less than 100 with maybe 50 graded higher for 15% over the spot price of gold. Look at the 1892-S Eagle for example, pop of 74 in 63 with only 4 higher and you can get one for around $1000, its more scarce than 1901 Morgan in the same grade with a population of about 125 but look to pay 15K for the 1901 Morgan....

So in my mind, I have a much better backstop of numismatic value with better date pre 33 American gold coins than I'd ever hope to have with gold bullion, and the upside is very compelling.. If the coin market ever recovers I have a lot of potential upside regardless of what the gold price does, AND my cost to acquire an uncirculated pre 33 Eagle today is so close to the spot value of the gold in the coin, any breakout in the price of gold will affect the value of my Eagles almost immediately.

As far as I am concerned, gold and silver bullion's only price floor is the face value stamped on the coin because there is little to no numismatic value in gold maples or silver koala's. The downside is too risky. However, the numismatic value support of old unc silver rolls and pre 33 gold coins is a very nice backstop that will limit loses and potentially be a nice spread above the value of the metal in the coins should the value of the metals in the coins increase dramatically.

Win win.