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Silver Too Attractive To Ignore

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Pillar of the Community
United States
573 Posts
 Posted 12/01/2010  6:29 pm  Show Profile   Bookmark this reply Add StJoeBlues to your friends list Get a Link to this Reply
fenton - personally, I stay away from paper. If I can't hold it, then I don't want it. I want my stack of silver readily available for when I need it. When inflation skyrockets and you try to cash in on a certificate to get physical silver, do you think you'll be able to get it? Not likely. In fact, even today it's difficult to get physical silver out of any certificates today.

I'm not up on the numbers, but my understanding is that the paper silver market has far outsold the amount of actual physical silver that available. When this house of cards finally falls, I think the POS will jump, but those with paper investments will end up with nothing.

There's actually a movement under way right now to urge holders of paper silver to demand payment in physical silver in order to crash a couple of the big boys who are alleged to be manipulating the POS of silver.

JMHO
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andrewjconners's Avatar
United States
497 Posts
 Posted 12/01/2010  6:38 pm  Show Profile   Bookmark this reply Add andrewjconners to your friends list Get a Link to this Reply
when do you guys predict a $32 mark? because that's when I'm looking to sell inless anybody on here (which I doubt,) wants to buy for 32 an oz.
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johnstac's Avatar
United States
327 Posts
 Posted 12/01/2010  6:48 pm  Show Profile   Bookmark this reply Add johnstac to your friends list Get a Link to this Reply
Christmas list update.....large safe
Valued Member
United States
98 Posts
 Posted 12/01/2010  7:37 pm  Show Profile   Bookmark this reply Add Syaoran_2001 to your friends list Get a Link to this Reply

Quote:
US Housing in 2005 is also an excellent example - the market was "red hot" and turned to garbage, wiping out most of our newfound home equity, by 2008.



The buying market was terrible in 2005 to 2008. I was looking for a house in 2008 and they were still all too expensive. We didn't buy that year because we couldn't find a decent house under $100,000. I'm sure plenty of other people who were considering buying a house didn't do it because it was way too expensive. When we were looking this year, the houses we were seeing at $100,000 two years ago were now in the $60,000 to $80,000 range. As such, we got an amazing deal on our house, $73,000 for a house that sold for $140,000 in 2004, no major repairs, perfect size for my wife and I, and it's an awesome house. And don't try to talk to me about "equity" and all that, I bought my house to live in, not to make money off of.

As for silver, we'll see $30 by the end of the month, definitely. I'm a little disappointed that silver is so high because that means that all the silver coins I want are priced according to their silver content.
Valued Member
United States
64 Posts
 Posted 12/01/2010  8:56 pm  Show Profile   Bookmark this reply Add tennlee to your friends list Get a Link to this Reply
Very spooky market.
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DNA's Avatar
United States
2734 Posts
 Posted 12/01/2010  9:14 pm  Show Profile   Bookmark this reply Add DNA to your friends list Get a Link to this Reply

Quote:
...its use as a cheap conductor is going to be small.

Anytime silver takes the place of gold on an electronic circuit board
(such as a computer mainboard), it will still be a "cheap" conductor.

Quote:
Camera film is dead, so that is a good portion of the market lost.

Three words for the future: Silver-based Catalytic Converters.
(when that happens, Platinum will drop like a stone off a cliff.)
Valued Member
United States
98 Posts
 Posted 12/01/2010  9:30 pm  Show Profile   Bookmark this reply Add Syaoran_2001 to your friends list Get a Link to this Reply

Quote:
Camera film is dead, so that is a good portion of the market lost.


Film isn't quite dead yet. A majority of professional photographers still use film because you can achieve much better effects in the darkroom than you can with Photoshop, not to mention different lighting and focusing techniques that are used with film that you can't achieve with digital. I still use film for my everyday snapshots instead of digital because I think film has a more authentic look and makes much more attractive photos than digital.
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Ceylon62's Avatar
United States
1285 Posts
 Posted 12/02/2010  06:51 am  Show Profile   Bookmark this reply Add Ceylon62 to your friends list Get a Link to this Reply
DNA, Is there any credible scientific links to that story about the catalytic converters? Thanks

So far what I have seen is on penny stock BB's from a few years ago. Keep in mind that the company that put that PR is a large comex silver trader out of Japan.

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fenton's Avatar
United States
4989 Posts
 Posted 12/02/2010  08:53 am  Show Profile   Bookmark this reply Add fenton to your friends list Get a Link to this Reply
The iShares ETF's are as safe as you can get. SLV, for example, holds 346,671,384 ounces of physical silver and has 354,500,000 shares outstanding. Hence, one share of SLV is exactly one ounce of physical silver bullion. IAU holds 3.21 million ounces of Gold and has 328 million shares outstanding. Hence, each share of IAU represents approximately 1/10'th ounce of physical gold bullion.

I would never trust an institution that took my money and promised me that they would buy silver or gold, on the open market, to compensate me. I do have faith in a bank managed Trust that keeps bullion in vaults, regularly inspected, at some precise ratio relative to the number of shares outstanding. That is the case for SLV and IAU which is why I would wholeheartedly recommend those.
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fenton's Avatar
United States
4989 Posts
 Posted 12/02/2010  09:06 am  Show Profile   Bookmark this reply Add fenton to your friends list Get a Link to this Reply
(I should also note that when the credit markets "froze" in late 2008, IAU and SLV remained 100% liquid and held full value in direct proportion to their respective gold and silver holdings).

That was a good litmus test since the equity markets were stressed to a degree not seen since the Great Depression. Many stocks fell 60% or more and some funds were obliterated.
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upstate's Avatar
United States
3283 Posts
 Posted 12/02/2010  10:34 am  Show Profile   Bookmark this reply Add upstate to your friends list Get a Link to this Reply
We've seen the stock market bubble of the 1990's (there abouts),
and more recently the housing market bubble; both followed by a crash.
The big question is: Is this a precious metals bubble or not?
I wish I knew.
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Spider5689's Avatar
United States
2269 Posts
 Posted 12/02/2010  11:06 am  Show Profile   Bookmark this reply Add Spider5689 to your friends list Get a Link to this Reply
With the financial mess happening in Europe, I see no reason for silver to stop short of $30. Countries such as Ireland, Greece, and Portugal are all experiencing major financial problems, I think people are seeing silver as a less expensive commodity compared to gold. A few years ago gold was a better buy, but the price per ounce has surpassed many budgets.
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oblakavshtanax's Avatar
United States
757 Posts
 Posted 12/02/2010  11:20 am  Show Profile   Bookmark this reply Add oblakavshtanax to your friends list Get a Link to this Reply
yep it's going to go up at least artificially by inflation.
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jbuck's Avatar
United States
188440 Posts
 Posted 12/02/2010  11:33 am  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply

Quote:
Film isn't quite dead yet. A majority of professional photographers still use film...
Interesting to know. All of the professionals I know personally have gone digital, however, they are all in the "event" business where I think something like Photoshop is adequate for their clientele. That is, the are minor-league compared to major-league professionals.

We should look at the historical percentage of film use by normal consumers versus professionals. I would think that the consumer take is now almost non-existent.

We should also consider the motion picture industry, which would rather film digitally and task someone like ILM for digital effects than spend time manipulating film.


Quote:
Three words for the future: Silver-based Catalytic Converters.
(when that happens, Platinum will drop like a stone off a cliff.)
The advances in nanotechnology should significantly decrease any precious metal use in converters. That is, platinum might go down, but silver would not go up either.

This is just my opinion and I could be wrong.
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spaceace's Avatar
United States
797 Posts
 Posted 12/02/2010  11:54 am  Show Profile   Bookmark this reply Add spaceace to your friends list Get a Link to this Reply
Speaking of this, I was in my local coin shop and he had a bargain bin with some SLQ for $5. I bought a few and he commencted that he needed to go through that again since the melt value was more than $5 on those coins. Made for a nice deal, but I don't really buy coins for their silver value.
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