Warning To All Silver Stackers

Aren't the premiums a good thing and a good sign? There's more paper silver sold than physical silver exists. That would suggest the silver supply silver price is based upon is basically artificial, manipulated, and just plain made up.

Premiums on physical suggest the value of physical versus paper may be more commonly accepted.

As no one really knows for sure if silver will keep dropping or make a turn around and increase, I would keep buying "some", I mean most are buying because they want to stack, not because they want to flip it every time it increases in spot by a few cents, ya some do but most don't.

If silver goes up then you have a stack, great. if you keep waiting for it to hit the "bottom" you might never buy any lol, maybe GICs are better suited for those types and forget about stacking silver.

If it drops then buy more, in this day and age any investment on the open market is risky. But I would take the "physical" over any paper junk all day long.

Since when silver price was connected with population growth? Back in 70s, silver hit about $50 per oz already; and by 2011 it revisited $50 area again. Needless to say, that $50 in 70s was much more valuable than the one in 2011 due to inflation.

You don't like talking about highs; that's fine, let's talk about lows.

Before 1970s high, the low preceding it was about $2;
Before 2011s high, the low preceding it was about $4;

Let's assume another high is coming; heck knows when that will be. The low preceding it, if you draw a trendline, should be about $8. Of course, we can't sit at the low all the time; let's give it a little room say $2.

That will arrive to about $10 per oz. If your population theory is anywhere close to be right, silver price from now, still has 30% downside ahead.

LOL

The prices are absolutely going to go lower - for paper. I don't get how basing prices on charts that have no limit to the quantity of supply of an item makes sense. if I can just simply write a paper certificate for silver on a napkin at a bar, hand it to you in exchange for $14, and you buy it, how's that actually holding any real value to silver? There has to be a point when enough people holding physical silver just plain out refuse to sell at these prices (like the premiums over spot price we see).

Update to the Silver weekly chart:

Still inside the downtrend channel; All major moving averages firmly down; Price struggling at the double-top-neckline; Recently Silver weekly futures report showed Commercial traders built up short position.

In summary, it is not an IF, but WHEN silver will break down to US$12 area. The earliest possibility is next week's FOMC meeting.

mrpapageorgio: that's exactly what happened and was the cause of the spike only 4 years ago....

It was then required that certain companies that were offereing silver "paper" they also had to hold a certain ratio in holdings in case a large percentage wanted their payout in product.

They NEEDED the physical product... it drove the price up near $40/oz... they have their stores of it now.. the price is going back to where it was before.... no big surprise...

Silver spot might have a dip and bounce, during and after FOMC's two-day meeting. Here is the reasoning, I expect a rate hike announcement; and of course Silver will drop sharply; right after that people realize there won't be any more rate hike for quite some time, then they rush in to cover their short position; hence the bounce.