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 Replies: 84 / Views: 8,051 |
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Pillar of the Community
United States
1150 Posts |
This isn't a proper 'correction'. This is markets increasing marginal rates. And Osama getting killed has given the dollar a small bump.
Nothin' has changed. Silver will rise again, no doubt about that.
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Bedrock of the Community
United States
10982 Posts |
Good article in this mornings Wall Street Journal:
"By Kevin Kingsbury
Silver is getting spanked, but some think the sharp decline shouldn't be a surprise.
Paul Mladjenovic at Minyanville notes that silver's years-long rally has been marked with notable swift pullbacks that petered out within a matter of days or weeks before powering still higher to near-record highs. Those declines have repeatedly occurred with pundits calling an end to the rally, notes Mladjenovic.
But looking more broadly, silver has gone from $6.31/ounce to near $50 before the current decline back below $40. "In my mind, $100 silver is not an ‘if,' it is a ‘when.' Will it zigzag on the way up? Count on it!"
Also, as MarketBeat noted earlier, China is still lapping up the silver."
Five years ago after gold hit $500, many said it would never reach $1000 and that people talking about $1,000 gold were nuts.
$100/oz silver is almost guaranteed in the long run, but it could easily take 2-3 years to get there. Where will it stabilize for the future? Anybody's guess but my guess is around $60/oz. Of course gold will be close to $2,000 then too.
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Pillar of the Community
United States
3670 Posts |
That is even more re-asuring. Key word almost guranteed eh, lol. No sure things in this world, but I think silver passing 100 is very close to one.... Here is the most recent 1 oz end on ebay, simple basic round, and it still brought $46.30.... http://cgi.ebay.com/ws/eBayISAPI.dl...k3e2wmk%253DEdited by Silverhawk74
05/04/2011 4:33 pm
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Bedrock of the Community
United States
14454 Posts |
I see it dropped below 40.00 today, so it should go lower since it broke under that. This will be a great opportunity to buy because I don't believe this downward sweep will last very long
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Pillar of the Community
United States
2764 Posts |
It seemed many agree that this is a good opportunity to buy but my question is: WHERE? Many local dealers will not sell at the same premium..... One can try some online large PM dealers like APMEX or Gainsville though. |
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Pillar of the Community
United States
3184 Posts |
lets see how silver does in the next two weeks after Osamas death is forgotten and people see that we still have the same problems before he was killed.
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Bedrock of the Community
United States
14454 Posts |
I was speaking from APMEX or kitco since they both go by what spot is when they sell. Of course if I was going to buy it would be APMEX and I would click their banner on this site so they would know the sale came from here and may keep supporting the forum because we are generating sales for them |
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Valued Member
United States
71 Posts |
Quote: Of course if I was going to buy it would be APMEX and I would click their banner on this site so they would know the sale came from here and may keep supporting the forum because we are generating sales for them Doh! I just bought from APMEX yesterday and I didn't go the route you took. Great idea, I just dropped the easy touchdown pass!  |
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Pillar of the Community
United States
4008 Posts |
Quote:
The long term real value line for silver is around $24 right now. I'm not convinced that anything has a "long term real value", but if it did, it would not be likely that any of us would know what that value was. Free market bidding will place the value where people will still buy it and that varies from minute to minute. A person CAN say that something has a real long term value to them, of course, but that is probably not the same price as the market sets. We do have some fast money in the silver market now. They have helped bid up prices over the past few months. Now that their options trades are costing them more money, they are less inclined to accept that level of risk at that price. Because of this, a lot of them have bailed and that has put some downward pressure on silver prices. Coin and bullion collectors are not phased a bit by these shenanigans. We simply keep buying a little here and there as we find good deals or as we have the money. If the price is high, we get a little less. If the price is low, we get a little more. Either way, we get some!  |
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Pillar of the Community
 United States
642 Posts |
I agree Ed_B, it has done little to phase me also. I might just buy a little more than usual knowing where the price has been and could go again soon. What I mean by long term real value is the general trends of economics. Things very rarely buck the trend. I'm talking about long term trends over decades. Things like food commodities and metal commodities have an almost straight line with a slight positive curve when compared, (ex, how much wheat will an ounce of gold buy). Prices are pulled up or down by different forces, but the further they are stretched from this straight line 'real value' the quicker they snap back. So, economic trends since WW2 puts 'real value' of silver around $24.  |
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Pillar of the Community
United States
4008 Posts |
Quote:So, economic trends since WW2 puts 'real value' of silver around $24. Uh, OK, then.  |
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Pillar of the Community
United States
1450 Posts |
The obvious question with the $24 price is "which" dollars we are talking about,WW2 dollars or 2011 dollars. That difference accounts for most of the price differences we see. That is why PM's are consider as instruments to PROTECT WEALTH! Their value has always as you point out,remained relatively the same but their price changes with currency values. Old timers will tell you an ounce of gold would buy you a good suit and a pair of shoes,that is still true but I guarantee you a suit and shoes costs a lot more dollars today than it did in 1945.So,when you talk about silver value at $24 dollars,that is not the same dollar that is worth less than the Canada or Australia dollar. Silver is definitely worth more than 24 2011 you S of A dollars,probably almost twice that. If the dollar continues to weaken,and there is no good reason it shouldn't,silver will gain in "price" because price is related to the value of the currency buying the silver!
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Bedrock of the Community
United States
10982 Posts |
Quote:
So, economic trends since WW2 puts 'real value' of silver around $24. Would those same trends put gold around $600? I'm not being sarcastic but just asking. I agree the $24 market price for silver is realistic. It's speculation and investment that drive it more than anything else (at least lately). Anyway, it will be interesting to see where it bottoms out this summer. Your $24 figure might end up being close to reality for a bottom. |
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Valued Member
United States
364 Posts |
That's the problem though -- you guys keep talking about where silver's bottom is, and not where the bottom is on the American dollar, and what will happen to it as a result of fiscal policy.
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Pillar of the Community
United States
3670 Posts |
Well I heard on the radio oil dropped below 100 bucks a barrel (gas is about to drop), and that the dollar is gaining strength, and the prices of what we all want to add to our stash is cheaper now, so I think I speak for most of us when I say we are all about the economy recovering, cheaper gas for more money for cheaper priced gold and silver....
However that ugly little 4 letter word DEBT that I bet zero of us are happy about is not going anywhere. We will see how long this high lasts....
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Replies: 84 / Views: 8,051 |
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Posted 05/04/2011 4:24 pm
