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 Replies: 19 / Views: 3,013 |
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Valued Member
United States
131 Posts |
My nephew works in a bank. 3 months ago someone brought in a few hundred silver quarters in rolls (not knowing they were worth alot). He noticed and has them now.
Now to the point: I believe the silver bubble has peaked and I'm suggesting to him to pick out any good ones and sell the rest for silver value. Lots of them are totally worn down and won't ever be useful except for the silver value.
He thinks waiting until the price goes back to $40/ounce but I think that will be another 10 years from now.
If anyone watches this stuff closely would you please let me know if I'm giving him bad advice?
Thanks. Edited by whatsthedillio
05/05/2012 4:46 pm
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Pillar of the Community
United States
802 Posts |
*** Edited by Staff - Please Review the rules that you agreed to when you registered. ***
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Bedrock of the Community
13014 Posts |
Silver should be hire, theres evidence that the traders are trying to keep the price down and are manipulating it. How successful they will be is anyones guess. It could get pushed down it could go way up no one really knows for sure. Things dont always respond how they should in markets like that.
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Pillar of the Community
United States
2269 Posts |
I am still on the fence about the possibility of silver taking a further dip. I believe for too many years silver was way undervalued. For the last month the spot price of silver has been hovering around 30-32 dollars an ounce. I do believe we are not done with silver yet. With the economy still reeling at a sluggish pace and the uncertainty in the world, combined with the emergence of India and China becoming industrial powers, silver is still relevant. We still are living in a very uncertain time and precious metals have continually outperformed many stocks. I cannot see a future where we will be seeing $10.00 silver again. The rise of silver has not been that drastic for me to think that an even more drastic drop is in the foreseeable future.
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Pillar of the Community
United States
3755 Posts |
There is NO "bubble". Silver has been manipulated to remain a lot less valuable than it should be. 50 plus an ounce is where it belongs. The idea of a "bubble" is promoted by old collectors who cant handle "common date" coins being more expensive and traders who benefit from lower prices... until they need them higher.
I would hold on to those quarters. Silver will get back up.
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Pillar of the Community
United States
1231 Posts |
Considering he got them for face value, he can sell whenever he needs the money
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Pillar of the Community
United States
808 Posts |
To the OP, I'd suggest holding on unless he just needs the money right now.
IMHO, silver's not so much in a bubble as it's price is highly sensitive to the major economic problems facing our our nation and the world. What this may mean for your nephew is that he's likely to have several opportunities to sell over the coming months and years. Until they stop the deficit spending, make meaningful reductions in the national debt, and stop printing piles of money, silver's wild ride is far from over. Just my opinion, though.
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Pillar of the Community
United States
2269 Posts |
 Silver is going to be desirable for a while. |
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Pillar of the Community
United States
1454 Posts |
CW has it right. Best advice you'll get, IMO. |
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Valued Member
United States
212 Posts |
I'm with Coinwatch. Tell your nephew to put those quarters away in a safe place and to just forget about them. In a few months/years, he probably will be pleasantly surprised.
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Pillar of the Community
United States
3670 Posts |
"If anyone watches this stuff closely would you please let me know" I check out the spot prices once or twice a month   ....  to the board an I agree with all to hold out for some time for sure.... Edited by Silverhawk74
05/06/2012 08:52 am
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Bedrock of the Community
Australia
21788 Posts |
The American economy appears to be slowly recovering. Very slowly, investors are getting back into other forms of investment other than precious metals, which are seen as a safe haven in times of economic downturn.
The case can still be made for stimulating the economy by printing more money thus forcing the inflation rate upwards. In this case PM prices would keep pace with the inflation rate, but perhaps there will be no REAL increase in in the silver price above the inflation rate.
In this sort of scenario, which seems to be current, the silver price will be subject to normal industrial supply and demand conditions, with the inflation rate added on.
To me, the silver market seems to be behaving like that right now, and will do so for some years to come.
The two year silver price history chart probably gives the best picture of what is happening.
Edited by sel_69l
05/06/2012 11:13 am
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Pillar of the Community
United States
1454 Posts |
Quote:
investors are getting back into other forms of investment other than precious metals, which are seen as a safe haven in times of economic downturn. Sel, Not trying to be disagreeable, I just want to make an observation. Gold & silver dropped like a rock during the darkest days of the Great Recession and only began recovering with the rise in stock market indices, starting around Mar. 2009. People should have been dumping cash in PMs, I agree. But that's not what happened, oddly enough. The "safe haven" seemed to be T-Bills, which was even odder to me. Never could figure it out, other than the possibility that central banks were working in concert to artificially keep PM prices low and fiat currencies above water. |
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Valued Member
Canada
62 Posts |
traevin - maybe t-bill investors are taking things to the next logical step. Before they'd let T-Bills go into default, they'll be raiding your safety deposit boxes and taking out your gold and silver. Oh, and making transactions in such illegal. Just a guess.
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Pillar of the Community
United States
808 Posts |
sel, I appreciate your observation and your comments. Actually the MSM frequently stand more than ready to promote the idea of "recovery" every time the dollar briefly strengthens or there's less than horrible news about some aspect of the economy. I get it...we all want things to improve.
I think individuals and the media often mistake American economic recovery for what more accurately should be seen as America's economic resilience. To me, this view is far more important than the idea of a modest (and temporary) recovery because it shows how robust American's economy actually is, even when faced with crippling fiscal mismanagement and crushing debt.
Edited by coinwatch
05/06/2012 12:09 pm
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Pillar of the Community
United States
1454 Posts |
1807-1814
1837-1844
1873-1879
1893-1898
1929-1941
What do these dates have in common? The answer is what gives me hope that we actually have a future.
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Replies: 19 / Views: 3,013 |
Posted 05/05/2012 4:43 pm
