Why Is Silver Price Going Up ?

when I first started collecting I started with Morgans and bars of silver. I was getting poured bars for about $4.00 a ounce I sold allot of it once it went to 15 or 16.00 a ounce and then sold the rest when it hit over 20.00 a ounce

I agree with another drop,but I dont think it will go under 12 bucks.

Imho, the answer is (and has been for me as an investor) security. I will try and take it apart layer by layer.

Why precious metals should be going down:
1. The robust demands for gold and silver are gone. The manufacturing sector has little need for silver, primarily, and the jewelry industry is on it heels. World wide, house holds are fighting to make ends meet and there is little room for luxury items. So, standard demand for these items is very weak.

2. As an investment tool, we have already seem the major gains in metals as a safe harbor. Investors like myself have already left the speculative markets and moved to safe havens, not to look for profit as much as to limit lose. Conversely, the reversing effect of investors leaving the metals and moving back into the markets is taking place and this should have a downward pressure on metals as well.

3. Supply and demand, at this point in time, has little effect as demand is down. Yes, every time we put pressure on China they start talking about stopping investing the US economy but ain't going to happen. We, by far, are the largest importer of Chinese good. They are stuck, for the time being, as they cannot shoot the goose with the golden egg.

Reasons for metals to increase:
1. Simple, The US dollar. When the world trades petro product, what is the currency of choice in the transaction, the dollar. It is, even if the EU would claim not, the monetary system for major economic movement in the world. Every treasury has dollars in them as an investment. You can bet that China does not have Zimbabwe bucks in it's investment portfolio. So, when the US dollar is weak, there is movement into metals, again, as a safe harbor, waiting for the US economy to rebound. Normally, with the economy reversing course, you would think that there is downward pressure mounting on metals. The caveat here is our national debt, completely out of control. This can only mean two things, well three, death, taxes and INFLATION. Until the debt is addressed, confidence in the US dollar as a world wide investment tool will be weak and this will fuel metal sales.

Well America is starting to protest spending, wait until they see the tax bill, and as the dollar cools the precious metal bubble will break. But for now, there is still some room to make money in metals. Again, IMHO, the window of opportunity is small, the big gains have already been realized.

Jim

It will depend on where you live. I like craigslist, but my metro area is not that large, so it can be slow going buying from only there. ebay is often overpriced in my opinion so I don't really look there much anymore.

harrison2 you can buy for a small premium over melt from Tulvig but you need to buy in larger quantities.

Jim,

There is no way the United State could ever pay back what we have borrowed from the rest of the world. Our politicians continue to borrow money from the rest of the world while spending like we were the ones saving all along. Look at the size of the US economy then look at our national debt. The US Treasury dept. will most likely be hiring for printing press maintenance crews.