When & How Does Silver Go Down Or Up In Value?

@tgauchshin
Wise words!

@coinwatch



Remember also that you watch the markets and are familiar with them. The PMs were driven up out of a fear that proved to be true. Most people are not familiar with PMs (most cannot even tell you when silver stopped being minted into coins in the US) and will experience euphoria (the falsehood would be something none of us, at this time, can judge with 100% acccuracy). Too many people being out of work etc. makes for a a large public mindset of wanting something to believe in. So a change in leadership, whether public feelings prove to be founded or not, will most likely give that sense of optimism and could result in PM going down (maybe not for long).

I believe the only election scenario that could change things is if, WHOEVER is elected, will study history and go that direction. I also believe we could eventually get out of this mess if it were handled properly. But I have to agree in that I do not think it will happen too soon.

The hard part is not going to be knowing WHAT to do. The most difficult part would be trying to clean house (not picking sides here) when there are so many unconstitutional things already that have been done (not just the recent past) and overlooked. There are so many people in power who only desire to do what is best for themselves rather than do the job they are elected to. Getting rid of a large chunk of the bureaucracy will also make for a much better economy. Again - this is a general, overall statement - NOT aimed in any direction.

When/if the economy is at an OK to good level - PMs stay pretty steady. When people feel threatened by the economy they are in, PMs become a perceived safe haven and prices rise.

So, compared to the 50% loss in the stock market in 2008, you are doing just fine and your PMs are preserving your wealth quite nicely.

Wow... everyone has an opinion, but let me add mine.

Silver is a useful metal for many technologies... The camera industry used to use a lot of it before digital camera's came along. When they were introduced demand dropped dramatically and so did the silver price. When the E-markets crashed a great number of people went from investing in theoretical stuff and moved to commodities and the commodities rose, adding to that China and India started demanding more silver for electronics and other industrial persuits and the price rose further. Maybe uncertainty and mistrust in currencies (Euro having trouble, quantative easing of the Pound and the Dollar has also effected the price with silver and gold looking more solid.

Anyway my point is that just looking at the graphs does not show these influences... silver is not such a rare metal really but there are many uses for it. Tin is another such metal... they are thinking of reopening tin mines in England that have been closed for decades. China and India are still gonna need a lot of materials in their development so I can't see these dropping through the floor just yet.

Silver price is driven by speculation and supply and demand. Compared to gold, the silver price is extremely volatile.

As others have stated, the simple answer is a weak dollar, or perceived weak dollar.

When you have a bad economy, gold and silver go up, as it's the safer way to store your money.

In theory, if the dollar became worthless, you could still sell your metals to another country.

An Oz of gold will always be an Oz of gold, and always worth something to somebody.
A USD dollar could literally become a piece of paper.

Which would you rather have?


It is amazing to see how out of hand things have got. I am certainly no expert, but I remember watching documentaries of the development of the American monetary system. It's mind boggling to see folks making these mistakes.

The only way it came together, was when the "Federal Reserve" literally had metal to back up every single dollar. <That's what turned the USA into an economic power house. There was no "debt ceiling nonsense"
Now, they don't. It's pretty much Monopoly money, or "borrowed" money.

I don't like to be a pessimist, if it's not turned around soon it will make the great depression look like a walk in the park.

Now you know why they used to sew silver into their clothing.< Think about it, they actually even had silver, only a select few of us will be so fortunate this time around.
Stapling dollar bills to your shirt won't do you any good, although you can burn them for heat.

I agree, when/before the first 13 Colonies were formed, Spanish coins were the most trusted.

Commodities were also more valuable, like animal pelts, tobacco and even Indian beads.

The Colonies then tried to each have their own currency, which quickly depreciated, so did the currency created after revolutionary war.("Continental Currency")

To make it even more worthless, the British conterfeited the currency.(Something we do to ourselves today, not literally, but practically).


When the Constitution was ratified in 1788, individual states were no longer allowed to print their own money.

The coinage act of 1792 created the United States Mint, which finally regulated the currency for the whole country.

Here is a list I copied and pasted of the original conforming currency. Notice there is no zinc, lol.

Eagles $10 247 4/8 grain (16.0 g) pure or 270 grain (17.5 g) standard gold
Half Eagles $5 123 6/8 grain (8.02 g) pure or 135 grain (8.75 g) standard gold
Quarter Eagles $2.50 61 7/8 grain (4.01 g) pure or 67 4/8 grain (4.37 g) standard gold
Dollars or Units $1 371 4/16 grain (24.1 g) pure or 416 grain (27.0 g) standard silver
Half Dollars $0.50 185 10/16 grain (12.0 g) pure or 208 grain (13.5 g) standard silver
Quarter Dollars $0.25 92 13/16 grain (6.01 g) pure or 104 grains (6.74 g) standard silver
Dismes $0.10 37 2/16 grain (2.41 g) pure or 41 3/5 grain (2.70 g) standard silver
Half Dismes $0.05 18 9/16 grain (1.20 g) pure or 20 4/5 grain (1.35 g) standard silver
Cents $0.01 11 pennyweights (17.1 g) of copper
Half Cents $0.005 5 1/2 pennyweights (8.55 g) of copper


The "Federal reserve note" of today is no longer backed by gold and silver in the reserve bank(s)

Example: The "Obligation clause" on a 1950 note states "This note is legal tender for all debts, public and private, and is redeemable IN LAWFUL MONEY AT THE UNITED STATES TREASURY, OR AT ANY FEDERAL RESERVE BANK"

The "Obligation Clause" of the current note states: "This note is legal tender for all debts, public and private"

The key difference is a modern note is a piece of debt, not currency. It was created as a form of "credit" for the gubment. You can't trade it for squat, after all, it's debt, not currency, it says it right there in the clause, you can only purchase "debt" with it, it is NOT directly redeemable for "money"(metals etc.) like the last couple hundred years.

It's all in the wording, if you go to the Reserve with post 1950s money, it's worthless. I highly doubt they would honor pre 1950s money either but you could try, bring your lawyer.

It sure is silly.

I suppose the notes are not "unlawful money", because it is not money at all.

Definitions of Tender:
"Latin root is tendere (to stretch out)"
"medium of payment"
"English word- extend, to hold outward (credit)"

Technically, "In some jurisdictions legal tender can be refused as payment if no debt exists prior to the time of payment"

Wouldn't it be nice if the Government paid you interest on the debt you hold for them.