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 Replies: 8 / Views: 1,167 |
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Pillar of the Community
United States
628 Posts |
Normally a weaker dollar (and other main world currencies) buys less silver (silver price goes up) and stronger currencies cause price of silver to drop. Lately major currencies are stronger, yet silver price is rising. Do I have this right?
If so, what gives?
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Pillar of the Community
United States
532 Posts |
Global economics are driven by industry and other factors.
Silver is tangible is also affected by fear, greed, and investor speculation. Actual demand for consumer goods using precious metals does control it's segment of the market too. Many factors make the precious metals market extremely volatile.
To a certain extent so are the currency markets, but not to such extremes. Shifts of 1% in currency markets make huge waves. Shifts in silver by 5% are not even considered uncommon.
Sometimes both going up at the same time is just coincidence of different factors pressing on the respective markets.
Bah,..proof reading my own post it is so hard to be articulate on such a crazy expansive topic without writing a book. I hope this makes sense to those that read.
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Valued Member
United States
365 Posts |
RFB, I'm going to be so bold as to say nice job! I think you summed it up well, and succinctly.
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Pillar of the Community
 United States
628 Posts |
Where is Bigg Fredd when you need him?
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Pillar of the Community
United States
2540 Posts |
current theory is that all commodities are rising in anticipation of the end of the recession.
However, for gold: China is the big buyer, supposedly the over $2 trillion in gold reserves.
Then India is the big buyer for silver.
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Pillar of the Community
United States
3294 Posts |
One thing you are overlooking is that silver is priced in US dollars, and the dollar is at the weakest it has been in over a year right now, so that also helps.
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Pillar of the Community
United States
1055 Posts |
 with Nod. If you look at the silver market compared to world currencies you are most likely looking at the silver spot value in USD. It may seem that world currencies are getting stronger, but they could just be worth more per US Dollar as the dollar weakens, giving the appearance that the Euro for example is gaining weight, while it is just holding station while the Dollar take a dip. I think silver is undervalued, as it is used heavily for industry. $30-$35 per ounce is not out of range in the short term future in my opinion. |
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Pillar of the Community
United States
6326 Posts |
It (Silver) was almost $16.63 an oz. yesterday I believe. Gold down $3.00 to $998.00 an oz. Keep risin' !! C'mon !.  I wish we could have strong record breaking Silver & Gold prices..... AS WELL AS A STRONG DOLLAR ! But that's seemingly an impossibility sadly. Edited by eaglefoot
09/09/2009 11:43 am
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Bedrock of the Community
United States
20753 Posts |
Quote:
It (Silver) was almost $16.63 an oz. yesterday I believe.
Gold down $3.00 to $998.00 an oz.
Keep risin' ! C'mon !.
HMMM. Think this is why there are so many of those dumb commercials on TV to send in your old Gold and jewlery for cash? |
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Replies: 8 / Views: 1,167 |
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Posted 09/04/2009 11:47 pm
