Gold & Silver Prices

IMO, the long term outlook for all hard assets is good, but for bad reasons.

I have a *theory* Catman and it goes like this: Cycles exist and must exist to maintain balance. But a cycle flip upsets the status quo and so will often be seen as something that does not bring balance but instead brings "evil," disorder and hardship. Deep recessions are a good example of this. A real and deep recession purges the economy of garbage. Recession is the "slayer," the natural enemy of boom times. The slayer preys on weakness and so makes the future brighter but at the expense of the present. People like the present, they resent change and when the apple cart tips it is usually viewed as an evil plot. Your not going to convince someone who's filling out forms in line "A" that the bad present might be good for the future. But your not going to get rid of the slayer either, he's everywhere for everything.
Even in something as benign sounding as this:
"Strength becomes weakness, weakness becomes strength." Sun Tzu

Now for the past 25 years financial assets, ie stocks, bonds, commercial instruments have been king and the result of economic strength and stability. While hard assets, ie gold, silver, rare coins, etc, the mark of inflation and a weak economy have been the mocked "squire-boy." Well the "squire-boy" is becoming a knight and the king is dying. Strength is becoming weakness and weakness is becoming strength.

Credit is not money. The debt problem in this country is more than enough to take us down. Sorry, but cycles don't care about how special we Americans think we are. Five plus negative ten still equals negative five. Just because we like to believe "we're special" doesn't make it fifteen. We really are a disfunctional nation when it comes to simple math.

The oil problem is real. Although I don't doubt that the oil roaches are taking advantage of the situation the situation still exists: World oil production is approaching peak.

Inflation, job loss, and *major* social unrest is, IMO, the long cycle that's kicking in for the world and *especially* United States. Again, I can't urge people enough to read The Long Emergency by James Howard Kunstler. It's rather sobering. As our economy goes, I believe the "slayers" are closing in:

"There was three kings into the east,
Three kings both great and high,
And they hae sworn a solemn oath
John Barleycorn should die..."
Robert Burns

Lighten up Francis!!!! John Barleycorn will live on, be it in bath tubs, basements or stills in the woods, what men crave other men will be provide for. Each generation has a John Barleycorn that someone thinks "Must Die" It is always the "hidden evil" that takes the blame. Greed and the pursuit of Power are the destroyers of most things.

Gold and Silver Steady. Sadly, war and disasters create jobs and corporate profit. Corporate profits create reinvestment, and jobs create increased spending and thus increased revenues. And around the Economic circle we go......Mike, Peace

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Originally posted by adobero1

On a much less profound note...I was wondering why the price of silver is up to $7.35 an ounce. My thinking is that with the advent of digital cameras and the decline of the use of silver by dentists what's left? Just jewelry? Maybe there's some new use for silver that I'm not aware of. Maybe it has nothing to do with a practical use for silver, just being dragged along for nostalgic reasons?

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On the some German forums they are waiting for 50 dollar silver
If you expect that you are willing to pay 12.5 or more

A great story, and not so far from the truth. Francis, is a character from the movie "Stripes" who lets say is a bit negative and on edge. Just a poke in the ribs,as I respect your opinions. There is so much to deal with day to day it's hard not to be cynical. I view life in a much different way due to personal circumstances over the last few years. I am lucky to be here and am blessed to live in America. I live now without much fear, and I think that is one of lives secrets. Peace, Mike

Little has changed recently. We've been spending beyond our means and eventually we'll have to pay for it. The price will be inflation and inequalities which make the economy less efficient so there is less wealth to divide up. I'm looking for the stock market to move sideways until inflation gets going pretty good and then it will almost keep up with it. Watch for still higher commodity prices. The better the economy does the better silver will do. The better inflation does, the better gold will do.

I expect stupid numbers in all currencies
Meanwhile look at gold in euro

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I also would like to add that my grandparents hired a car and a chauffeur and spend the big worldwar in the south of france all based on possession of 20 dollars in gold which were sewn in the hem of the dress of my mother and grandmother
I also understand some unfortunate people bought their freedom from being killed by having diamonds