What Does The Future Hold For Silver?

Wish I had a dollar for every investor that made that statement...don't want to discourage you because you will help me make money...but the guy on the caboose of the gravy train ends up paying for the first on board.Always have and always will.

I really believe that there are enough fundamental supports to keep silver in the $30-$50 range for at least a couple of years. If anything,it is going up,not down.

You are right Maineman everything is constantly changing in this world sometimes for the better, and probably more often than not, for the worst, and it appears from your past you have been in this for the long haul, and have seen the ups an downs of real estate and precious medals....

But some times in this world you gotta believe in something and stick with it, and if it does not work, move on to the next venture eh. I don't have the house tied up in it, and zero debt, so as long as I keep the bills payed each month, an watch my spending, I should be o.k.. If silver drops to two bucks an ounce tomorrow, oh well, I will stick it in the closet and start stockpiling mass amounts and wait until it climbs back up the ladder again....

Gold and silver will continue to rise as long as the G20 and our economy is in limbo. However we do not want to keep paper in hand either. The buying and selling we do does not effect the market it is controlled by paper manipulators. What we need to remember is to have silver and gold in hand if the dollar is removed as the world currency. Don't sell because silver or gold is high unless you need immediate cash. The precious metal will always have a safer value than any paper money whether it goes up or down. My opinion only. LOL

All good points being made. My strategy was to buy until silver reached $17,when it reached $30, I sold enough to cover my initial investment so I can hang on forever if I feel the need.There was some luck involved but as I said before,getting in at the start is the most important thing.Using common sense is the other factor.I did absolutely nothing to prepare for y2k because it didn't make sense.Listening to my "gut" has paid off well for me.

I'm far from being an expert, but with Gold and Silver being a commodoty, do production costs actually affect the cost of the of the metal? The cost is set by the market, not by the seller. The production costs are going to impact the profitability of the mines, but when they sell the metal, they are still going to be selling it for the spot price. The price will not be impacted until the supply of the metal is impacted (when the mine stops producing becauses it costs more to produce the commodity than it can be sold for).

Similar to the price of corn - the market price is not impacted by the costs of fertalizer or crop insurance. It is only impacted by increases or decreases in supply.

Close, but no cigar. When production costs go up, miners are less willing to produce to sell at any given price. It's not an all-or-nothing, sell if we make money, stop if we don't deal. There are all sorts of fixed costs that have to be paid (interest on loans, for example) whether they're working the mine or not. Sometimes they'll take a small loss to produce, rather than take a bigger loss to stay idle.

Another factor is different areas have different purity of ore. As prices rise, they'll mine lower purity (or more expensive to get to) ore which is only profitable at higher prices, and leave the higher purity stuff for when the market is low.

Finally, a lot of gold and silver production won't change much, because it's a byproduct. If silver doubles in price, it doesn't justify digging up twice as much copper just to get the silver in it. If rising copper prices justify digging up twice as much copper, then they suddenly have twice as much silver from that mine, too, and if silver demand doesn't go up with the copper price, this could actually cause silver prices to go down.

Well put biggfredd. I think too many people have the big misconception that mines only produce just gold or just silver but rarely are they found as such. They are normally associated with copper and other precious metals are just added bonus. Some mines are going lower than 1g of gold per ton. Normally when prices are too low, they try to stockpile where possible and process it when it's profitable.