I think Silver will make it's big moves once Gold breaks the $1K mark - psychology - Gold will get so much media attention that the "other" PMs will get "re-discovered", and YES, Silver's depletion rate is way higher than that of Gold (by depletion I mean conversion into forms that cannot be extracted for reuse because of various reasons).
My comments were meant strickly to the question of the op. The VAT placed on 'it' is directed to silver bullion and silver bullion related coins. The VAT on silver bullion is just on the retail end. Institutions, banks, anything not retail is exempt.
The 1st week of Nov. I sent emails to FT of London, The Silver Institute, and the Silver Investor asking about VAT and received responses. Here's my favorite response:
"We will be working with our European counterparts in 2008 on efforts to educate the leaders in EU that this is a bad tax, especially if silver is being singled out."
another: "There is very little else we discuss with the Fund managers in Europe."
and another: "To cut the long story short, the VAT on silver bullion has certainly acted as a disincentive for small retail investors in Europe." To be fair this was also stated/theme implied. --there was a lot of retail buying of silver in 2006 in Europe. The feeling was that the price would rise enough to beat the VAT-- --bulk of investor activity has been large scale players rather than small ticket individuals..VAT effect..limited. In other words, Europen institutions of any sort that are VAT exempt are buying.
I like silver. I own silver both physical, pool, and stock funds. I'm not at all bearish on owning it. It is the cheapest pm to buy into right now in relation to ITSHTF for the gain...heck to spend if it really gets that bad. You would think it would be up near $100 by now. I like 1oz .999 jewelers rounds and 64 50C & 25C.
I agree, but I'm predicting an irrational exhuberance towards metals to start forming which will cause appreciation in excess of the dollars depreciation. Too many dollars out there chasing too few "quality" investments and too many people looking for the "next big thing."
at some point the gold to silver ratio will "kick in." it might not be the 17 to 1 ratio that many of us are familiar with, but at some point the rising price of gold will make investors buy silver.
silver was called "the poor man's gold." right now, gold is still within reach... but wait till gold moves higher and then the spillover will grab silver.
but frankly, Im surprised silver is as low as it is.
The moves tend to even out over time. Here's the way it was Dec 2nd 2004 and as you can see both metals are about the same ratio as when GoldSaint posted the big link. I wouldn't be surprised if silver doubles over his 2004 post first............
Here's the ratio as I figure it:
The numbers: 867/ 455 for gold 15.30/ 8 for silver
so
lets say that silvers 15.30 isn't known and see what the adjusted price should be with this formula
867/455 times 8 = X
X= $15.24
Actual price is now $15.30 so it's done a little better than gold on the day GoldSaint made his post.
Math it's a good thing
Thursday December 02, 2004 6:13 AM
Rather than having a thread where we make our Gold, Silver, and economic predictions perhaps we can start a thread where we post related world announcements, price moves, and make comments on these moves as well as the predictions of others. Gold is at $455 today and Silver is back to $8.
Comments
correlation to the loss of the dollars
purchasing power.
Camelot
to silver bullion and silver bullion related coins. The VAT on silver bullion is just on the retail end.
Institutions, banks, anything not retail is exempt.
The 1st week of Nov. I sent emails to FT of London, The Silver Institute, and the Silver Investor asking
about VAT and received responses. Here's my favorite response:
"We will be working with our European counterparts in 2008 on efforts to educate the leaders in EU
that this is a bad tax, especially if silver is being singled out."
another: "There is very little else we discuss with the Fund managers in Europe."
and another: "To cut the long story short, the VAT on silver bullion has certainly acted as a disincentive
for small retail investors in Europe." To be fair this was also stated/theme implied.
--there was a lot of retail buying of silver in 2006 in Europe. The feeling was that the price would rise
enough to beat the VAT--
--bulk of investor activity has been large scale players rather than small ticket individuals..VAT effect..limited.
In other words, Europen institutions of any sort that are VAT exempt are buying.
I like silver. I own silver both physical, pool, and stock funds. I'm not at all bearish on owning it. It is the
cheapest pm to buy into right now in relation to ITSHTF for the gain...heck to spend if it really gets
that bad. You would think it would be up near $100 by now. I like 1oz .999 jewelers rounds and 64 50C &
25C.
<< <i>Not so much a bubble as a direct
correlation to the loss of the dollars
purchasing power. >>
I agree, but I'm predicting an irrational exhuberance towards metals to start forming which will cause appreciation in excess of the dollars depreciation. Too many dollars out there chasing too few "quality" investments and too many people looking for the "next big thing."
<< <i>Don't be silly!
171 pounds of silver is nothing in volume, around 26 100 ounce bars. That's a lot like 26 VCR tapes in volume. Try storing 1700 pounds pounds of it.
>>
I thought I had a lot of silver! Crap!
silver was called "the poor man's gold." right now, gold is still within reach... but wait till gold moves higher and then the spillover will grab silver.
but frankly, Im surprised silver is as low as it is.
www.AlanBestBuys.com
www.VegasBestBuys.com
Here's the ratio as I figure it:
The numbers:
867/ 455 for gold
15.30/ 8 for silver
so
lets say that silvers 15.30 isn't known and see what the adjusted price should be with this formula
867/455 times 8 = X
X= $15.24
Actual price is now $15.30 so it's done a little better than gold on the day GoldSaint made his post.
Math it's a good thing
Thursday December 02, 2004 6:13 AM
Rather than having a thread where we make our Gold, Silver, and economic predictions perhaps we can start a thread where we post related world announcements, price moves, and make comments on these moves as well as the predictions of others.
Gold is at $455 today and Silver is back to $8.