What If Silver Bottomed Out At 4 Bucks?

Everyone is speculating and predicting prices... 4 $ is way too low, in my opinion. It would be a great gift if we saw 15 $, even. 10 $ would be "WOW!", but anything below is almost impossible. It's already very low... Some say production costs are around 20-23 $ (not sure, just heard).

I don't know that much about precious metals, honestly. I'm just a coin collector.

I just hope it doesn't grow high now. Last week it hit 20 $!

Trout,

Weren't you the drummer in the band, Men at Work?

Who would sell at $4 anyways? And who would mine it? There is a breaking point.

Better hope that oil goes back to $20/barrel too then.

That would be fantastic but wont happen.

They also arent comparable. Oils the most important commodity on earth and is a consumable. Silver isn't consumed, its just reused over and over with miniscule amounts actually be lost.

People are funny.

When silver is at $30-40 and everybody thinks the price will be even higher in the future, of course we all talk about "backing up the truck" and loading up if silver were to ever (temporarily) dip back down to $4. But if silver actually dropped to $4 and stayed there for weeks, months, years? Like it did for most of the 80s and 90s and into the 00s?

Well, at some point I think a lot of people would give up on the whole idea of silver ever going back up (or at least not anytime soon) and decide to cut their losses and invest in something else instead. Presumably, if silver ever did drop to $4, it would mean the economy as a whole was doing better and that once again things like stocks and real estate would become better investment vehicles.

So, yeah -- if silver were to actually "bottom out" at $4 I suspect there would be a LOT of people willing to sell and far fewer people willing to buy than there are now. People only buy silver in bulk because they think it will increase in value (or at least hold value). Once that faith is shaken, there just won't be that many buyers.

I agree with Barry It sorta mirrors the stock market. When things are going well, everyone want in, regardless of price. But as soon as prices begin falling, the same brand of people can't wait to cash out. The rich have been taking advantage of these boom/bust cycles since the first pyramid arose in Egypt, probably engineering more than a few depressions simply to fleece the plebes.

My silver collection, of which about half is regular bullion with little to no numismatic value, was purchased at about the price where silver currently resides. And although it looks like I was foolish for not selling in the $40's, I'd probably hang onto it at $4 for the same reason I didn't sell then: I just like the majority of what I've collected and selling it simply feels wrong to me. If I'd bought it with the intention of selling for a profit later, perhaps I'd feel differently.

I would be happy if silver went that low. Then all the speculators would get lost and coin and bullion collecting would become more affordable for people such as myself.