Silver: Undervalued

meos1

I think that the rage on Gold is overblown. When you understand the supply of raw material for Gold versus Silver you can see that there is a much better upside to silver. (17:1) Unfortunately, you will not get Oooo's and Ahhh's for silver versus gold. You may make a little "coin" in the mean time!

Dan

michael

for me

i think silver is not undervalued and will only be pushed up because of gold

michael


now remember i am judging this by demand not by other factors

i guess only time will tell

roadrunner

meos1, I have to agree with you. The historical ratio of gold to silver is way out of whack and the amount of silver reserves has been heavily depleted over the past 20 years. Yes, I think silver will follow gold, but will eventually outperform it. It has the leverage.
But bags of silver are a pain in the butt. A few $20 gold coins is more portable. I think everyone should have a bag of silver just in case things get rough down the road.

roadrunner

docday2003

<< <i>meos1, I have to agree with you. The historical ratio of gold to silver is way out of whack and the amount of silver reserves has been heavily depleted over the past 20 years. Yes, I think silver will follow gold, but will eventually outperform it. It has the leverage.
But bags of silver are a pain in the butt. A few $20 gold coins is more portable. I think everyone should have a bag of silver just in case things get rough down the road.

roadrunner >>



I agree with your points. The only change I would make to your statement is "I think everyone should have a bag of silver (for when) things get rough down the road." The economy is not in the best shape, and I foresee tough times coming...

MoneyLA

I love this subject and I agree that silver is now extremely undervalued. Yes, the historical ratio has been 17 to 1 or as much as 20 to 1 for gold and silver prices. Currently, the ratio is so far out of whack that you have to call silver "dirt cheap." However, you also might want to call gold extremely overvalued.

Unfortunately gold is not the hedge it used to be -- it has been replaced by US Treasury Bonds as a store of value and safety.

Gold continues to be emotional and silver it's "second cousin" for emotion.

Ive been tracking the gold and silver markets literally for decades and while I would like to see an explosion in silver prices -- even to the $20 range where it should be today -- I don't see it happening.

cheers, alan mendelson

fcloud

IMO There is too much silver for it to be undervalued. Look at the charts--every time the price goes up, it doesn't take very long for the price to fall again (My guess is the speculators take their profit as the price drops). Supply and demand determine the price of silver, and over the last few years there has been a few ups only to be followed by downs. Silver simply is not on the same scale as gold.

MoneyLA

fcloud wrote that there is too much silver for it to be undervalued. quite the contrary -- there is so little silver in the world that a cartel could easily corner the market. remember the hunt brothers? it could easily happen again.

personally, I'd like to see it happen. imagine the "benefits" of silver going back to $50 an ounce (it's all time high) ??

junk morgan dollars in circulated grades would trade at $35 each, unc common date washington quarters would sell for $8-$9 each, and most importantly coin collecting would probably have another renaissance.

cheers, alan mendelson

fcloud

I prefer cheap silver. And, yes I remember all the trouble the Hunt brothers got into because of market manipulation! With the low level of silver coins being produced today, I would suspect that most silver is used in jewlery, and industry. Plenty to go around. Remember silver is a commodity and it works off of supply and demand. If there is little demand the price stays low, as demand increases so does the price.

roadrunner

I've read where the current excess supply of silver on the market is something like 50 Million ounces. Heck, what's his name, Warren
Buffet, purchased 120 Million ounces several years ago. Bill Gates has a large amount also. These guys are dumb asses I guess!

Alan, I never thought that moderns or Lincolns or Washingtons would ever be worth a lick, but look what happened there. The difference in Ag between now and 23 years ago is that we have painted ourselves into a tight little box with no room to get out. The ammo has all been used up. Now we are waiting to see what happens as the spin doctors continue to play down the situation and prime everyone for the soon to come recovery. I can't see how silver can do anything but rise in the next year or two. All the major govt's of the world are manipulating their own currencies as well as the gold, silver, oil, int rates, stocks, mortgages, etc., markets. What markets hasn't the FED played with to date? When all the manipulation exhausts itself what do you think the end result will be?? Shangri-la or a busted economy?

roadrunner