What If It Is All Wrong?

The problem with "what ifs" is that they exist in the realm of what could/might be. They are not real.

The funny thing is that PM buyers/sellers all have to calculate which "what if" they think is more likely to happen.

The facts are that as long as the current admin keeps killing our dollar by printing more and more, then the actual buying power of the dollar will sink. Hence it will take more face value paper-backed-only-with-debt to buy an ounce of silver/gallon of milk.

Silver has retained its relevant value with goods throughout most of history. So it has to become more valued in US dollars as the dollar sinks.

However ... political manipulation can/(has) alter/ed the market - for awhile. But political agendas can only "fool" some of the people some of the time.

Now if we get a pro-American-business government in place, the debt is reduced, and we have a strong country again - then the PM market will either stabilize or prices will go down as the dollar is strengthened.

I am no expert though and admit it. This is just what I have been able to glean in quite a bit of time of self education on the matter.

If silver ever again dips below $10 I will buy, buy, and buy some more. "Junk" silver that is, I love that kind of stuff.

Metal is cyclical in nature...just look at the past. Difference here is the size of the cycle because of the current state of the world economy. When the fear passes so will metal prices but from what point I havent the foggiest of ideas.

I agree, Junior. In all measuring systems, something has to be the standard. At one time, the British pound sterling was that standard. Then came the US dollar.

Now that most of the fiat currencies have shown their feet of clay, gold is emerging as the standard of financial value. Everyone realizes that gold is precious, that it has been used as money for thousands of years, and that there is no way for any government to wave a pen and create more of it.

The other PMs have been buoyed up by gold, rising in price as gold rises. Silver, palladium, and platinum prices are all up substantially over the past few years.

Unlike gold, the white metals have considerable industrial uses that add to both their desirability and their consumption, and therefore their prices. Their volatility can be higher as well since there are more forces pushing and pulling on them from various directions. An investment in palladium, for example, could be seen as a bet on the chemical industry (catalysts) and on the auto industry (catalytic converters). Silver can be a bet on the electronics and solar energy industries, where it is used fairly extensively.

As far as coin and bullion collectors are concerned, we have considered the question and have made / are making our choice. The question, of course, is, "Do we want to keep our savings in US dollars or in something that has intrinsic value?". It is a reasonable assumption that an ounce of gold purchased today will be worth more in 15-20 years than the equivalent amount of paper dollars. Yes, there have been times when this was not the case... such as 1981 through 2001. Buying in at an unsustainable price peak can, indeed, be hazardous to your wealth! By buying regularly, though, we can dollar cost average into our PM positions and avoid this problem.