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 Replies: 16 / Views: 5,720 |
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New Member
United States
18 Posts |
isint silver supposed to be going up along with gold it was higher a few months ago than it is now I mean 39$ and gold is at 1615$ whats the deal with this?
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Valued Member
United States
103 Posts |
Why? supply and demand. Gold and silver, although sometimes forgotten, are nothing more than factors in the economy. When you were little, if someone offered you a treasure chest of gold or a treasure chest of silver, which would you take? The answer being, gold. Gold simply has more demand. Why are Phillies tickets so expensive while Nationals tickets are not? Both are baseball games....one is more sought after than the other If Silver went up to 800 dollars an ounce tomorrow, no one would buy it - well when I say no one, I mean most people. Just as if nationals tickets went up to 800 dollars a ticket tomorrow, no one would buy it. Despite APMEX, and the economy, and the value of the dollar, and all the other common factors in PM prices, everything is about what you're willing to pay. And since the beginning of time, whether it be in other items or cash, people were always more willing to pay for gold than silver |
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Valued Member
United States
458 Posts |
In the future years, I could see this changing due to medical and technological advances.
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Pillar of the Community
United States
3670 Posts |
I have been wondering the same thing....
It as if many now see the dollar and its problems and are turning to gold first, and that is creating a chain effect. More buyers, higher prices, and it continues. That tells me, many are not afraid to get into gold regardless of its current price....
I agree with much of that R11, but eventually that 16 to 1 factor is gonna kick in, as the ratio widens to far from gold. If gold keeps climbin, I think silver is gonna hit 50 again real soon, and once it passes that psychological figure, I think sky is the limit, for reason Silvercoinboi pointed out....
Edited by Silverhawk74
07/29/2011 02:09 am
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Valued Member
United States
458 Posts |
:D Hopin it reaches the sky!
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Pillar of the Community
United States
802 Posts |
I'm hopin silver goes up!
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Pillar of the Community
United States
526 Posts |
Silver has been strongly manipulated over the past 50 or so years. Look back at the Hunt brothers, different manipulation technique than what the banks are doing now, but it was still manipulation.
Silver is quickly following the rule of diminishing returns. It is a "Throw Away" PM used for industrial/medical/technology. The mines cannot keep up with the demand but the bankers keep making raids with paper silver which drives the price down. The last two attempts at this manipulation have failed costing the banks millions when the contracts come due for physical delivery.
Silver is also starting to run its course with the mines having to go deeper and deeper to reach the PM. It is starting to "Dry Up" around the world. Central America is starting to explore their Silver resources as of this minute but it takes roughly 5 - 7 years from the time of exploration to the time when the Silver can come from the ground.
In short, Silver will reach that magical number of $50.00 and then probably double that in the next 5 - 7 years. It should hovering around $85.00 dollars right now, but thanks to the manipulation of silver it is half of what it should be.
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Pillar of the Community
United States
830 Posts |
As I see it, the main difference between silver and gold as a precious metal investment is silver has the added industrial demands and is not stock piled. This gives it an added volatility subject to economic conditions. Right now the economic numbers in the US are looking worse (GDP dropping).
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Pillar of the Community
Canada
3692 Posts |
I think it's because silver still has applications beyond being a store of value like gold is. It's bought in large amounts by the people who use it so that keeps the price way down.
I don't know much about the mining process, but perhaps it takes more manpower to mine gold.?
How much silver is in the average modern electronic device today? Imagine how much a cell phone would cost if the price of silver was as high as that of gold - you don't want that.
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Pillar of the Community
United States
860 Posts |
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In the future years, I could see this changing due to medical and technological advances.
Most of this talk has been advanced by people who want to visualize silver as being of medical importance and present silver , elemental, oxides,colloidal, etc., as something new and vital. Their claims are generally made in blogs or websites with little or no evidence to back up the claims. The effects of silver on microorganisms has been known for more than a century, but other techniques, generally have much better results. If you really want to research this, search out only articles that have been written in peer-reviewed journals, other wise you are going on basically hearsay.Silver products are used in medical areas, but use micrograms or less in a product. Here is s NIH listing of toxicity reports on silver TOXICITY that are peer-reviewed, and will never be found on a bullion site. http://toxnet.nlm.nih.gov/cgi-bin/s...+@DOCNO+7056Jim |
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Valued Member
United States
302 Posts |
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isint silver supposed to be going up along with gold it was higher a few months ago than it is now I mean 39$ and gold is at 1615$ whats the deal with this? Look at the historical ratios of the two metals. Currently the ratio is about 40:1, 40 ounces of silver to one ounce of gold. A few months back the ratio was 60:1. In 1964 it was a government mandated 27:1. In 1979 it was 16:1 because of the Hunt Brothers silver market squeeze. Silver is an industrial metal AND a monetary metal. Gold is not. So you are effectively comparing apples and oranges and getting misleading results. One of the historical uses of silver was for photography. That is not true any longer with digital cameras. So, that reduces silver demand, hence silver prices. Gold was never used for photography, so it does not exhibit a lower demand curve based on photography. This results in a wider ratio between your apples and oranges (gold and silver). My best GUESS is that the true ratio between the two based on CURRENT demand is somewhere between 35:1 and 40:1, roughly where it is now. Decades ago the ratio was a GOVERNMENT MANDATED 27:1, most likely defective like all other government mandates. Bottom line is I would buy either gold or silver at current ratios. If the ratio goes back to 50:1, all new money would go in silver. At 60:1, gold would be sold and all of the money put in silver. |
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Pillar of the Community
United States
830 Posts |
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How much silver is in the average modern electronic device today? Imagine how much a cell phone would cost if the price of silver was as high as that of gold - you don't want that I just saw a Goldline ad that claims there is about 50 cents worth of silver in a cell phone. So the price of silver could double and it would only add about another 50 cents to the price of a cell phone. I don't know if its true or not but I've heard estimates that there is about 500 lbs of silver in a cruise missile. Silver is a must have metal for high tech weapons, there is no substitute, it is the world's best conductor by a lot. Or so I've been told by EEs, I'm just an ME.  Edited by GoThunder
08/01/2011 10:09 am
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Pillar of the Community
United States
7840 Posts |
Speaking of electronics...It is true that Silver has a higher conductivity than gold (*108.4% {pure} IACS [International Annealed Copper Standard} vs 70% {pure}), gold does not tarnish ( nothing glitters like gold) like silver. It still amazes me that some people market gold as being a superior conductor, when they should be touting the stability (corrosion resistance) of the material. Besides, gold is much more flashier!  * http://www.ndt-ed.org/GeneralResour...sc_Matls.htmEdited by oih82w8
08/01/2011 10:23 am
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Pillar of the Community
United States
5854 Posts |
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isint silver supposed to be going up along with gold it was higher a few months ago than it is now I mean 39$ and gold is at 1615$ whats the deal with this? Silver has been going up along with gold but the high that we saw near $50 was probably due speculation causing it to overshoot on the upside. |
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Pillar of the Community
United States
931 Posts |
The talking heads on CNBC today had this discussion. Industry is down and with all of the bad press the economy is getting they don't look for demand to be rabid anytime soon for silver. I think they are completely correct because I think when gold gets much higher it will be out of reach of most investors and silver will start to catch up as a precious metal play. I only have about two pounds of fine silver but I am going to be adding to that when I hit my goal amount of fine gold.
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Pillar of the Community
United States
860 Posts |
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I don't know if its true or not but I've heard estimates that there is about 500 lbs of silver in a cruise missile.
Sources I have found on the internet says 15 kg of silver, about 33 avo. lbs or 482 troy ounces. Some sources may have changed the oz. to lbs. Jim |
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Replies: 16 / Views: 5,720 |
Posted 07/29/2011 01:31 am
