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 Replies: 32 / Views: 6,045 |
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Valued Member
United States
327 Posts |
I apologize in advance if there is a topic already addressing this. I did a search but didn't see anything.
Silver has fallen from grace in the past week or so and wonder what your thoughts are. I've been bullish for some time and remain optimistic for this metal in the future. Just wondering if anyone has more insight then I. Perhaps with the run up over the pass several months, it was expected?
Was hoping to continue to see it climb above $30.
*** Moved by Staff to a more appropriate forum. ***
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Pillar of the Community
United States
505 Posts |
It may drop a bit more,but I'm pretty sure it will come back up.After all,the worlds Fiat printing machines are still running!
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Bedrock of the Community
United States
10982 Posts |
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Valued Member
United States
287 Posts |
My opinion is that we have not hit the high and are now headed back down.
It is more likely that this is just a temporary correction.
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Bedrock of the Community
Australia
21786 Posts |
Just been looking at the 25 year silver price chart.
The long term price average price is around $22.
My personal interpretation of this information is that from a chartist's point of view, there is more downward pressure on the price than there is upwards pressure.
I have many kilogrammes of silver coins that have a numismatic value way above the melt value. It has taken me decades to build my collection, and I have no intention of selling it now, unless I run into serious health issues.
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Valued Member
United States
314 Posts |
I believe it is a correction. If you look at a 37 year chart, silver is in the red during January and February.
I believe we will hang around this area for a bit longer, possibly a dip to $24-$25. I also believe we will see $40/oz sometime this year. If you're looking for short term gains/profits, this is not the time.
If you're like me, and in it for the long term, buy some on the dips all the way down. It's too hard to pick the bottom, but buying on the dips, you can average your cost.
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Pillar of the Community
United States
2424 Posts |
yes.
I beleive we are seeing the slowdown as some predicted. the markets are heading up and the dollar is gaining ground. I'm getting ready to invest when it lowers a bit more.
also, if you are planning to buy more silver, invest in high grade 90% collectors coins. build up a set with MS+ as prices are unaffected by this silver movement and an investment will hold true
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Pillar of the Community
United States
2541 Posts |
I'm not sure where it's going, but I'll use it as a bit of a buying opportunity!
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Pillar of the Community
United States
2602 Posts |
I think it is a correction and could fall as low as 22-23 range before bouncing back up again. However, if the economy improves dramatically and the dollar gains strength, all bets are off and silver and gold could go into free fall back to $15. I would be watching economic indicators very carefully.
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Pillar of the Community
United States
4989 Posts |
I'm not sure if it will go up or down from here but, from purely an investing standpoint, it is obviously much better to buy at $10 and sell at $30 than it is to buy at $27 and, possibly, suffer a massive loss if it falls back to an "historically normal" level.
EDIT: Also, there is a bit of a myth that high silver prices are due to massive increases in money supply. In fact, M3 money supply has shrank due to the housing bust and inflation has been at 20 year lows (2009,2010) in the United States. The Federal Reserve may be putting small amounts of currency in the hands of banks to keep the heartbeat alive but that money is not finding its way into the hands of consumers.
Edited by fenton
01/26/2011 2:09 pm
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Pillar of the Community
United States
505 Posts |
Quote:
The Federal Reserve may be putting small amounts of currency in the hands of banks to keep the heartbeat alive but that money is not finding its way into the hands of consumers. Small Amounts?I dont think you can call Billions of dollars small amounts! |
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Pillar of the Community
United States
4989 Posts |
Remember that the total M3 money supply is about 15 Trillion and Aggregate U.S. Net Worth is 56 Trillion. The 1 Trillion that the Federal Reserve put on its balance sheets was not even enough to offset the amount lost in the housing bust let alone all the money supply damage done by the Great Recession. It is also dwarfed by the 1.5 Trillion Dollar Federal Deficit. All the money the Federal Reserve has "printed" during the Great Recession is not even enough to cover one year of Federal borrowing let alone flood the (colossal) United States economy with capital.
EDIT: In my view, it would take 3-4T of new money supply to ignite inflation and risk a new U.S. asset bubble. What they have printed thus far is just enough to (barely) stabilize banks. Little or none of that money has flowed through to consumers most has simply been reinvested by banks in U.S. treasury bonds to stabilize their reserve ratios. My wheel barrow is definitely NOT full of money right now!
Edited by fenton
01/26/2011 3:42 pm
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Pillar of the Community
United States
757 Posts |
it's a myth, perhaps, but what's not a myth is that IF there is a drastic increase in money supply, metals tend to do well.
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Pillar of the Community
United States
757 Posts |
to wit: were the dollar to no longer be accepted as the reserve currency then we'd have a lot of problems.
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Moderator
 United States
187702 Posts |
How about "IF there is a perceived drastic increase in money supply, metals tend to do well."
Fenton is mathematically correct, but that does not change the fact that the media fails to mention those details. So the public panics and metals go up.
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Pillar of the Community
United States
757 Posts |
true enough mr. buck.
but fenton, where exactly do you get this 1.5 trillion figure for US debt?
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Replies: 32 / Views: 6,045 |
Posted 01/26/2011 02:25 am
