Near Future Of Silver

Dream on if you expect silver to drop to $20 or less.

Bruce - you and I are contemporaries. I will be age 62 in about 3 weeks!

I agree with your comments, probably in large part because we have both lived through the same history.

Silver and gold can be looked at in many ways. For me, they are part insurance against financial disaster, part collectibles, part inflation fighter, and part a store of value. Having already seen the dollar shrink in buying power from $1 to about $0.03 within my lifetime, I am VERY unimpressed with the people running this country and have been for about 30 years now. I do not see how these incompetent thieves can get us out of the mess that they have created. Because of this, I am taking action to do my own saving. If I can use PMs to protect my family from the worst that comes along, then it will have been worth the time, money, and effort dedicated to it. If by some miracle we manage to avoid financial disaster, then my PMs will still have value in fighting inflation and preserving the wealth that I have accumulated.

In order to understand our current situation, one must eliminate the lies that we are told on a daily basis. First, we are NOT in a recession. We are in a depression but the government will NOT admit it. A depression is a deep recession with persistently high unemployment. Sounding familiar? Additionally, we do NOT have 9.2% unemployment. A very detailed analysis of US employment is available on https://www.shadowstats.com and it clearly shows that US unemployment is in the area of 16-18%... and that it is trending higher, not lower. Finally, we are told that the US currently has 3.2% inflation. This is yet another bald-faced lie. REAL inflation in the US is now at 9-10% when REAL numbers are used instead of the cooked books used by Bernanke and the federal government. That the talking heads on TV parrot the government figures over and over is a complete disgrace to their profession. Apparently, they subscribe to the Big Lie Theory, which repeats a lie so often that it becomes accepted as truth.

Once we have determined what the truth of our situation is, we can take sensible action to improve it. For me, that means collecting physical PMs and using a good fraction of the paper investments I have to do it. I am not rooting for a financial collapse of the Euro or the dollar. That would be a terrible situation that would do great harm to many of our fellow citizens. I will not allow such a collapse to harm my family, though. I will do this by being prepared in case it occurs. If it doesn't happen, that will be GREAT! But if it does, being prepared will be MUCH better than not being prepared.

I don't know that silver will go to $100 by the end of next year. It is a pretty safe bet that silver and gold will trend higher as the world's primary currencies (US dollar, Euro, and Yen) trend lower over time. At the very least, having PMs means that a good part of a person's wealth can be protected from the ravages of inflation.

Speaking of inflation, we have only seen the leading edge of that storm. Much more will soon follow. It is not possible to create trillions of fiat dollars out of thin air, "inject" them into the economy, and not expect severe repercussions from that action. Econ 101 tells us that the more common something is, the less value it has. Does this somehow not apply to currency? Hardly. It applies to EVERYTHING, including currencies. We cannot double or triple the amount of money in the economy without it producing inflation. The economists tell us that the definition of inflation is increasing amounts of money chasing the same or fewer amounts of goods and services. A trip to the local gas station, grocery store, pharmacy, and many other places will clearly demonstrate the power of inflation... Uncle Ben's comments notwithstanding.

Ed_B and BruceC,I,too,am about to reach 60 years of life and find myself in the same boat as you fellas! It is difficult to watch the demise of a great country and great economy. My father,who would have been 88 a month ago if he was still with us,worked for the same company for55 years. He made a good,living wage and my mother stayed home and raised us 4 boys. We had 1 car,i television(and that was not until about 1958 if I remember correctly)a home where each of us shared a room with a brother,1 bathroom that we all shared and,most importantly,a great life growing up. We had our problem s but this sprint for "stuff" as individuals and as a nation has killed us. We don't need a lot of what we have and then we become slaves to maintaining it. Sorry for the rant,but I think when we lost sight of companies providing jobs for people,and workers appreciating the jobs they had is when we started to falter. Companies leave to find cheaper labor.Workers want more and to do less. And,here we are,too far down the road to fix it easily. I'm glad I have what I have,especially PMs!

I feel like I'm 60, does that count?

Yeah I used to use stops all the time, but since the flash crash I haven't used one.

Yeah, you're probably right. I do stay pretty glued to the live data during market hours, but that doesn't help any with over-night moves. Of course neither do stops either.

I have placed a lot of buy orders well below the market hoping for another flash crash.

And it is easy to forget that in early 2008 silver was $21 per ounce and in October it was under $9 per ounce. That is over a 50% drop in LESS THAN SIX MONTHS.




I doubt that it will get back to $20 again. However, I do expect it to try. And, I expect you to be sweating blood over the thought of you possibly kissing the backsides.

MMerilinn, I went back through and had a read of this thread and spotted that crazy statement and had to laugh, lol....

Yes, I will be sweating this week out, and even if it does not, I think we all can see it most definitely can run to low 20's in a blink of an eye, if a combination of bad world wide economic events all hit at the same time perhaps....

Lucky 7, find some trusted American silver eagles, and try as get as many as you can, as close to spot as possible while we are down here around 30 per oz.. That or a nice mix of some 90% silver if you wanna find even a bit cheaper deals....