And The Drop Goes On.....

Why not $9 silver again? 2008 was not that long ago, and with a downturn in the world economy industrial metals will have lower demand. To top it off the plunge in silver price is injecting large quantities of silver back into the marketplace so as silver continues to plunge there will be an excess of available inventory at depressed prices. Prices only go up when demand outstrips supply. I would not at all be surprised to see silver below $20 by weeks end

I used to work in a different "precious metal" industry, firearms. Even when conditions are right and the deals are all around, we all forget that no matter how good the "deal" seems it will only sell if someone has the money to buy.

I think what we are partly seeing is that people are just simply out of money and when silver investors saw the downturn they had to and will continue to sell off their position because
1) they see their profits evaporating
2) need the money for the basics of life
3) are gunshy to get back in from what they experienced in 2008, the proverbial "one bitten twice shy" syndrome

"Why not $9 silver again?"

Anything is possible UHroller, as I sure did not expect to be typing about 29 dollar an oz. silver in late September....

My thoughts exactly, it's not just us physical silver buyers, paper silver investors with a heck of a lot more dough to kick around will really drive the price up once they jump back in.

Just an observation, but I see a lot of commentary from the Gold Bugs about how Chase and the other big players are in bed with the US Gov. in a big conspiracy to drive PMs down. So if the big boys continue to not pile in on the dip and raise the price, how is anything that the small investor going to do to make a dent?

In other words if the big boys are the ones that have been trying to knock the bottom out of the market, and if Joe Investor is has just lost a ton of money, then who exactly is going to be coming back into the PMs in the numbers needed to drive it back through the roof?

I'm not sure what is happening, but I am curious as to how the gold bugs are going to spin their gov conspiracy theories while at the same time somehow spinning to raise prices.

Like I said, just curious. As an aside my local guy told me that he took such a dump that if he had not had such a run up in the last two years this price drop would have knocked him out of biz.

He said he will open Monday and then close for a week to wait for a direction. And when he opens he will be buying at 18x. Though......he may change that if the prices keep going down between now and opening!

Luckily I was broke and was forced to sell my silver at $40 an ounce when I paid something like $41 to $42 an ounce. I was able to resell some coins I bought to bring me back to no loss. Now with this huge drop I am ready to buy. This is insane to watch. And I would be mentally exhausted as well if I still had some silver saved up. Will be interesting to see what it closes at this coming friday. It is showing no signs of slowing down thus far.

This is another reason why silver is so much more volatile than gold. There's a lot less investment grade silver than gold, about 1/4 as much. Just a few big players can really influence the price, while its that much harder to do with gold

I almost bought over the weekend at Gainesville coin, but something told me to wait.

It is tough to see your stash go down from $40/ oz to $26 / oz. That is a 35% hit.

I am glad I am in it for the long haul.