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 Replies: 86 / Views: 5,950 |
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Bedrock of the Community
United States
12437 Posts |
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Valued Member
United States
60 Posts |
I agree with grmike. A drop in price of gold does not necessarily mean a drop in silver, it might just correct the ratio which has shifted heavily to the gold side in the recent past. The ratio is currently around 50:1 and was around 20:1 just 20-30 years ago.
If China buys up most of the gold dump, a price drop will be very short lived and the ultimate result could actually be an increase in price.
Edited by ouzo66
02/27/2008 11:36 am
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Pillar of the Community
United States
5318 Posts |
Q: does silver decouple from gold prices; does it rise with gold but not follow it down? It seems rather complicated to me, and since my opinions don't really matter  , here's a historical backdrop:  I'll just say: every bubble has a similar feature--people believe this is a "unique" situation, and past historical cycles do not matter today. That's why the current market psychology seems so familiar to me. Don't be too hopeful that your preferred scenario will play itself out, because people have been proven wrong on that count endless times to their financial ruin. Enough of my op-ed...I'm done, lol. Edited by KurtS
02/27/2008 7:16 pm
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Valued Member
United States
60 Posts |
It is hard to draw any conlcusions from historical data because there have been so many "events" in the past 250 years that makes each era very distinct and different. There was a time when the USD was backed by a gold/silver standard in which the ratio was set by law at 15:1. That was followed by a time in which the gold standard was in place. Next it wasn't even legal to own gold in the U.S. from (correct me if I'm wrong) roughly the 1940's-1970's. Then in the current era where it is again legal to own gold, there were an attempt by a couple of brothers (can't remember their name) to corner the silver market, which led to the spike around 1980. Now to the current state of things, as represented in KurtS's 2nd chart, gold and silver have moved similarly in the recent past. I suspect that superimposing other precious metals and other commodities on the graph will also show very similar pattern since the major movement on each graph is a near direct result (inversely) of the value of the dollar.
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Rest in Peace
United States
2668 Posts |
Filter out the 'events' and I can leap to a conclusion! The value of the dollar, huh? What value? The government is busy making pesos look like a good investment.
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Valued Member
United States
168 Posts |
maybe that's a good thing for the usa and maybe it would help weed out some unwanted visitors in the country who simply come to work and send the money back home. with the dollar not holding value it would appear as though other countries would appeal to the rest of the world and quit looking at america as the dumping ground of unwanted visitors who have a negative impact on the economy...imho
lastly.......silver closes at 19.26----WOW!
Edited by dcarver9183
02/27/2008 7:06 pm
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New Member
United States
37 Posts |
I expect silver to continue this trend up until the $25 an ounce point. It will be very volatile after that, however.
Personally, up until $25 an ounce, I still think it's a very good opportunity to purchase silver! Next week I'm going to buy an additional 100 ounces of silver eagles.
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Valued Member
United States
161 Posts |
Are there any non US posters out there reading this. what has theprice of gold done in your currencies. I recall in 2002 you could get Approx 1.50 Canadian for 1 USD, now it is even. I wonder what has had the biggest effect on the price of gold and silver....actual market change or dollar change? Just a year ago silver was 12.50-13.00 an ounce...now it is around 19.00. The price of oil has an effect on the price as never before I imagine. Its increase is sending stocks down, so hedges go up.
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Pillar of the Community
United States
533 Posts |
quote:
I've looked around a little, came up empty handed. Can you explain how the IMF has the means ( or motive ) to flood the world market with gold. What is the source of this news?
When countries needed to borrowed money from the IMF, for a time, the IMF required a percentage of the repayment to be in gold. Over time it has added up. [url][ http://www.imf.org/external/np/exr/...gold.htm/url] The IMF has over 3000 metric tons of gold,  and if it was possible for them to sell that much all at once it would drive the bottom out of gold prices. Simple supply and demand curves. Didn't anyone else take Macro Econ? But, this is impossible. If they wanted to sell all of their gold they would have to do it by the European central bank gold accord which limits gold sales to 500 metric tons/ year. Will the Euro and the USD ever be back to about equal? I guarantee it. Everything like this ebbs and flows, what goes up must come down, etc. |
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Pillar of the Community
United States
619 Posts |
quote:
... there were an attempt by a couple of brothers (can't remember their name) to corner the silver market, which led to the spike around 1980 ...
That would be the Hunt brothers. |
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Pillar of the Community
United States
4870 Posts |
Silver is trading right now at $19.69/oz!
Edited by TheForce
02/28/2008 11:50 am
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Valued Member
United States
168 Posts |
right now is 19.76!! probably hit the 20 bucks mark at the end of today--yeah!
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Pillar of the Community
United States
1984 Posts |
I'd personally rather have $13 silver and $2 gas than $26 silver and $4 gas.
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Valued Member
United States
168 Posts |
silver 19.83 right now....can hit the 20 dollar mark?
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New Member
United States
34 Posts |
Gold and silver are going nowhere but up. Their prices have been held in check for 20 some years now. And with the financial collapse that is taking place, the only save place to be is in PM's right now.
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Replies: 86 / Views: 5,950 |
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Posted 02/27/2008 11:33 am
