Yanked The Rug Out From Under Silver An Gold Once Again....

It's a crappy cold snowy day outside, think I'll have to go buy some silver to get over my cabin fever.

Silver hits 30 an oz., dare I say a bit less, I say buy buy buy if you can, great plan guys. And it will be interesting to see how long this little buying window stays open....

Silver and Gold are the new House Flippers who were the new Tech Stocks. I'm expecting the same thing to happen to silver and gold that happened to the rest. I have no idea when it'll happen, but I fully expect silver to be at $15 within 2 years...

That would be a great thread...

the metal has an intrinsic value based upon use / need. Once you go past that point you enter into speculation. IMO and I'm no expert but precious metals are in a bubble created by volatility in the housing / stock market. The difference is that both the housing and stock market are production based (a good is being created).

The use / need of silver and gold has been and always will primarily be a hedge against inflation. Any price appreciation above and beyond that inflation rate is speculation.

This is all just IMHO...

"the metal has an intrinsic value based upon use / need"

We all know gold is needed primarily as all the world is well aware that it is much safer to tie up their net worth in it, as opposed to dying paper money, and not just the dollar. Based on much history going too far back to debate, as we cover this subject here often....

And as far as silver, if you really start to read and research, you will see it has much more practical applications then you could ever imagine. It flows currency better then gold. Rear window defrosting technology has one oz. of non recyclable silver in its design for the currency factor. It is sprain on some clothing which allows the material to breathe better and cooler. The medical field has many needs for it. Drop a silver dollar in a barrel of milk like in the old days, and it stops the bacteria from being able to reproduce, hence in essence killing it off all together. Ships would do that years ago, place a silver coin in the water supply. Very high tech top secret weapon projects require the use of silver. Even baby drops once had silver in them seems like. I could go on all day, but you all know what I say is true, an I am sure many of you could name many more examples....

No silver is gonna be needed more an more as we go into the future, and no way does it loose its value to 15 bucks, and never take off again IMHO....

I agree with springcypress. Yes, silver has many industrial uses. It has more industrial uses than gold in fact. However, I believe that the price of silver parted ways with the supply / demand cycle of industrial use about mid-2010. The bull market that took silver from $18 in July-2010 to $50 in May-2010 was driven by fear of a currency collapse. When the economy gets better, silver will drop like a stone back to its value as an industrial commodity. I see silver dropping back to the $15 - $20 range by 2015. It may drop even lower right after the collapse as people that bought their silver based on the advice of TV commentators and talk radio hosts rush to unload. In short I see the first half of this decade playing out the same way as the first half of the 1980's. (There is a reason that places like Kitco.com only chart the historical price of silver back to 1985.)

My old logic professor would have called that "assuming a fact not in evidence". Perhaps it would be more accurate to say, "IF the economy gets better..."? At the current time, there is zero evidence that the politicians will be doing anything to actually help the economy improve. Merely getting out of the way would be a huge help but I don't see that happening either. The simple truth that few politicians seem able to grasp is that we simply have too much government. We are at the crossroads where we must decide whether we will grow the economy or grow government. We cannot afford to grow both. To grow the economy will require that we have about 1/2 of the government that we currently have. Considering all the sniveling that occurs when even minor cuts in government are suggested, getting to where we really need to be seems a political impossibility at the moment. I don't know... perhaps we need to feel a lot more economic and financial pain before giving up on the idea that government can do everything?

As to silver, today was a good time to add to my collection. I ordered 10 rolls of the silver proof Statehood Quarters + a $100 face bag of BU Roosevelt dimes. I had been waiting for a price pull-back before ordering and this seemed an appropriate time. Only the passage of time will reveal whether or not this was the best time to buy but I don't let such thoughts prevent me from investing. Fact is, if I never buy at a market low or sell at a market high, I can still make a LOT of money.

Additionally, I invested about $60k in the PLTT physical platinum ETF. This is a longer range investment of 2-3 years. Pt prices rarely ever drop below Au prices but when they do, the following 2 years usually has about a 60% profit in Pt associated with it. This is not guaranteed, of course, but the past 100 or so years show it to be the general trend.

Will silver drop to $15-20 an oz.? Maybe. No one knows for sure. My thought is that the economy and the government would have to show a HUGE improvement for this to occur. While this is possible it also seems quite unlikely considering what is happening in the world these days.

alot of you have great points, biggest things I see for silver at least;
1.) increased demand in industrial use
2.) slowing of mining
3.) considered to be a safe form of investment
4.) easy to buy at spot
5.) great future in rapidly growing tech
ect...
with increased demand and less supply you will most certainly see an increase in price. Then again this is my feeling on the situation and this is why I will continue to invest in silver.