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 Replies: 66 / Views: 8,538 |
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Pillar of the Community
United States
7194 Posts |
With the high oil prices all comodities are going to see inflation. As mentioned in an earlier post silver has nearly doubled in six months, we may be seeing that for our groceries over the summer. If the inflation persists silver and gold will reach into higher teritories. The days of sub $20 silver are long gone with the dollar buying less and less.
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Valued Member
United States
458 Posts |
As long as there's no brains running the big show metals will go up.
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Valued Member
United States
299 Posts |
Ozzie,
"i supppose if there was a reversal in the USD then this would be bad for silver."
Relative to WHAT?
Things are totally different from the last price spike for silver. Back then the world was not as much o an open global marketplace, and the Hunt Bros were trying to "corner the market" and create something close to a monopoly control of the silver supply for industrial purposes as tech was just starting to bloom and electronics uses a lot of silver.
UNfortunately for them, miners kept producing silver to inject into the market and they ran out of cash before the world ran out of silver. That is what caused the crash when they could not keep buying and folded their cards.
Today we have a global market, global currencies racing each other to the bottom, welfare states going broke and printing money as fast as they can find ink and paper. People want real money as a store of wealth.
There will be adjustments and orections asd things stairstep higer, but this price run will go to at least 75 before it is finished. See my comments in your other thread.
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Pillar of the Community
United States
1150 Posts |
Factor in inflation and todays spot price is nowhere NEAR its 1980 peak. Also, the hunt brothers didn't play as large a part in the silver rise as everyone would have you believe. As a matter of fact, in the early seventies, when it first came out about the Hunts, the price dropped for a couple years. And as some have mentioned, the world in 2011 is not exactly as the world was in 1980.
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Moderator
 United States
16679 Posts |
It will break the $50 an ounce barrier soon. When it was $22, everyone said that's it. Now, it's $36. There is still much more room. As long as the current administration stays on it's current course, there will be upside to all commodities.
swcoin.ecrater.com
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Pillar of the Community
United States
3670 Posts |
Silver will not crash this time round. Remember rising oil costs, fuel contracts expire, they have to be resigned at current market price, which in turn could mean silver shortages if gas prices get to high which should then in turn set the gov and the wealthy into motion shaking as much silver an gold loose from the less knowledgeable public as they can get a hold of, not that they are not doing that already. Like the guy you said buying at store an doubling money on ebay.... Bigger picture more people born everyday on a planet more suited to sustain half a billion people instead of 6 an a half billion an growing every day. Less natural resources an water in the future, more people, this is a formula for certain disaster, and you would have to be one heck of a debater to convince me that pm's will not be very valuable an sought after from here on out.... Edited by Silverhawk74
03/07/2011 11:55 pm
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Rest in Peace
United States
9104 Posts |
you don't need daily data for 100 years. large portions of that time the price was fixed by the gubmint, or didn't vary that much.
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Rest in Peace
United States
9104 Posts |
Quote:
UNfortunately for them, miners kept producing silver to inject into the market and they ran out of cash before the world ran out of silver. That is what caused the crash when they could not keep buying and folded their cards. I'm a frayed knot. They had the rug pulled out from under them when the powers that be changed the rules and put a limit on how much physical silver anyone could buy in a month. They had huge amounts they were contracted to buy, but were not allowed, and had to sell those contracts to whoever else would buy them. The rest of the buyers were nowhere near the volume buyers the Hunts were, and the price collapsed. |
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Valued Member
 Cyprus
349 Posts |
Hi piffin,
during the last time the dollar rallied strong didnt the other PM's start to fall?
Didnt people unwind their trades to get back to perceived safety of US dollar?
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Valued Member
Cyprus
349 Posts |
the stock market too did have a spectacular climb. It too then fell. How many people believed that it made sense at the time and it couldnt fall?
Given how cheap money is to borrow.......doesn't it seem reasonable that speculators may jump on board the silver sky train.....im sure there are some traders from the big banks adding to it...
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Pillar of the Community
United States
2734 Posts |
The 1980 high of $50/Oz. adjusted for inflation would be $130/Oz in today's Dollars. Start paying attention is this barrier is broken. Quote:
(The Hunt Brothers) had the rug pulled out from under them One part of the reason why silver is on a steady long-term rise is because it's much harder to pull the rug out from under "millions of small-scale physical Silver investors" as compared to "two brothers with a stack of leveraged contracts".  |
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Pillar of the Community
Canada
838 Posts |
Based on the overwhelming optimism here in this thread, I fear silver is close to done.
None of you will be there to buy silver at $50 if you're so convinced it's going up from $36. Heck, most of you probably had the foresight to buy at or below $20. What do we know about world economics at $36 that we didn't already know at $18? So who's buying at $50? Not me.
I have yet to see a chart where something spikes up 500% in a year and subsequently stays that high forever more.
Mind you, I agree that our currencies are on a one-way train to the bottom. That can only help silver long-term. I think $30 is fair now, with perhaps $50 in 3 years time. Anything much above that is getting bubblish, IMO.
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Bedrock of the Community
Australia
21788 Posts |
Ozzie: If you are after silver price history, just try Googling for silver price graphs for the duration of the period that interests you. Normally, I look at the silver 10 year price graph.
Just draw a smooth line of best fit for average prices through the graph. That will be your trend line. Not quite as accurate as a calculated moving average trend line, but certainly a lot more accurate than no trend line at all!
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Valued Member
Cyprus
349 Posts |
Yes I did try googling to find a long term 50 to 100 year silver chart without success. I would like to examine the highs and lows and find out what put the price up high and what brought it down.
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Rest in Peace
United States
9104 Posts |
Quote:
One part of the reason why silver is on a steady long-term rise is because it's much harder to pull the rug out from under "millions of small-scale physical Silver investors" as compared to "two brothers with a stack of leveraged contracts". How about etfs? |
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Replies: 66 / Views: 8,538 |
First Page
Posted 03/07/2011 3:22 pm
