Gold Breaks 1600$ Silver Breaks $40

Actually PMs had a big dip in price in that 2008 recession.

Would have to side with mmorgan on this one. Also, great point about lack of precious metals in portfolios. The media is really adding to the hype lately.

I would say that 2008 dip was direct ramifications from the housing market collapse, and no late day pull back like often happens, as silver is at $40.56 and gold is real close to $1604....

Nope, me neither. The only bubble I see these days is the government spending bubble... and it will go "POP!" one of these days.



Indeed. At that time, a lot of folks were scrambling to gather up any and all cash that they could to pay for immediate needs. The saying then was that "Cash is King!". As we learned more and more about US and Euro debt, though, this changed to "Cash is trash!". :-/

I wasn't into PMs then but did scoop up a lot of cheap stock and mutual fund shares in late '08 through early '09. A lot of that was up 25-40% in 2010.



It sure has and it is more likely to get worse before it gets better.



Perhaps we should be thinking more along the lines of "Can congress correct the debt problems we face?". This problem has been with us for quite a while yet it has really accelerated in the past 3-4 years. At some point, huge problems like this tend to become uncontrollable. It's like careening down a curvy mountain road in a wagon with crummy steering and no brakes... and we're rapidly picking up speed.



This is why some of us ignore prices and buy a little silver on a routine basis. We are doing the dollar cost averaging approach. Because of this, we end up with a little more when prices are low and a little less when prices are high... but we always end up with some! Over time, this builds our collection and results in a pretty decent average price. $40 silver looks expensive compared to $30 silver... but not when compared to $100 silver. How many silver stackers quit buying when silver prices exceeded $20 an oz.? I would imagine that some did because they were used to $10-15 per oz. silver and that $20-25 per oz. silver just looked too darned expensive. If we consider all the things that are happening in the world today, we really should consider what silver prices might look like in a year or two. It may well be that they will be higher than today... and perhaps MUCH higher.

Well back in 2008 I said let it happen the only thing that will fix our economy is a total collapse, then the Washington Mafia will have to do something and the economy will get back to reality.

I still today thing the total collapse is the only fix and it will happen nothing can stop that now we have passed that point.

PM can only go up over the long run (just my 2 cents)

Wow, great deal.

I agree with you Ed about the Bowles-Simpson recommendations. Their approach made everybody have some skin in the game and was reasonable in timeframes for reductions. I think draconian spending cuts will be counterproductive,especially if they fall mainly on the backs of the middle class. There need to be spending cuts but there needs to be revenues raised also. I have been mulling over a plan in my head recently,a 10% flat tax,no deductions and everyone pays,include capital gains as income,and in addition,a 2-3% consumption tax on everything but food ,clothing and fuel. That way,those that consume the most will get taxed the heaviest but everyone would pay something.