WILL SILVER PRICES GO UP?
eddyemack
Posts: 198
I was just wondering if anybody thinks the silver market will shoot up? I thought it would soar once the bailout was rejected. I guess we better belt up and take that E Ticket roller coaster ride with this economy.
Thanks ,
Eddye Mack
GO STEELERS ( I sure hope that they play better than last week)
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It has no central banks buying it during recessions. Meanwhile, demand slows because the economy is slowing.
Silver is an industrial metal and to a lesser extent an ornamental metal. Demand for most metals falls when the
economy goes into recession.
PM's, more Gold than Silver, are hedges against inflation, not recession. If the U.S falls into a recession your
Silver should continue to drop... PM's are sold during recessions to gain cash... They are bought during inflation
to hold the value of your dollar...
The price of oil should tell you where you silver is headed....
Edited to add: As a small hoarder of mainly silver. I hope I am WRONG....
<< <i>Silver is even less protected from recession-induced sales, which is why silver’s price is more volatile than gold’s.
It has no central banks buying it during recessions. Meanwhile, demand slows because the economy is slowing. >>
If this isn't a recession, I'd sure hate to see one!
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Where in the world can you buy silver for $13.17 an ounce? I understand that dealers tack on a premium, but I have never seen the price of silver stay steady around $13 when its pretty much impossible to find silver anywhere less then $16-$17 an ounce?
maybe about 1 month ago when silver was in the 12-13 dollar spot, there was plenty to be found. The B&M stores had plenty and enough for everyone to choose through and pick out which round they wanted.
Now this last week and this week, things have been weird. Spot price 13 and no silver to be even found. Noone coming in to sell but plenty of buyers. Its weird.
The B&M stores in my area were tacking on +75 cents over spot for each round, bar, etc. Well now, they are doing +4-5 DOLLARS over spot! Even then, the silver is selling! crazy!
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They are going to scream "during the last depression gold rose". Then some genius will remind them that
during the Great Depression we were in the Gold Monetary Standard and by law, the Goverment bought gold.
There is no reason to buy now. Unless or course we go back to the Gold Standard. Silver will not be bought,
as it has no monetary value. In regards to paper anyway...
I'll still buy it because it is PURDY!!!!
<< <i>What I am wondering is why it has remained pretty much the same for over a week now ?
Where in the world can you buy silver for $13.17 an ounce? I understand that dealers tack on a premium, but I have never seen the price of silver stay steady around $13 when its pretty much impossible to find silver anywhere less then $16-$17 an ounce? >>
Because they bought at the high end.. For some anyway... The other reason is pure economics... Ask the oil companies about that.
Why would you sell silver at slightly above spot. When you can get 3 to 6 dollars over.. Same reason we are paying slightly
less for gas than a few months ago. Yet oil is 50 dollars less per barrel...
They will sell for what the market can stand. When investors realize that to lower the premium, all they have to do is stop
going to the B@M and purchasing it. The premiums will drop as well.
<< <i>cinman your not a small hoarder of silver, your a big hoarder. Maybe you are causing this scarcity of silver
Easy now young fella..... I have seen your post as well. And your qiuckness on the BST..
One thing is for sure... One of us will be holding our eggs in the basket when the silver market tanks...
I just hope I am young enough to ride it out....
I envision Silver bottoming somewhere around 9.50 an ounce. That is just my opinion of course but I feel that it is a serious possibility.
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Just wait until the Great Depression... All the holders of Gold are going to wonder why the price has tanked.
During the last depression the government wasn't creating hundreds of billions of dollars a week for assorted bailouts.
When this money hits Main Street, I expect gold (and gold coins) to do very well.
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Congress will pass a modified version of the Bailout Bill
along with hyper inflating the money supply
the Dollar will fall again, PM's will recover for a second go at big numbers
Fill Baby Fill!
1. Inflation caused by the Federal government, even if the bailout doesn't pass the government has already indebted the tax payer for the next 15 years at least
2. In UK, and Europe, I have read they they are conteplating a rate decrease, if they do it over there expect the Fed to follow suite
3. Current spot price is less than the REAL price to manufacture and distribute... if the price stays this low manufacturs will start closing their doors and supply will tighten
4. Yes, Silver is an industrial metal, but it is also a store of value similar to gold (especially once people understand that 90% of the silver ever mined has been used already and that Silver is more rare than gold)
5. The Gold to silver ratio is at low right now, indiciating silver's room to rise at CURRENT gold prices
6. For years there has been evidence that a few banks were holding concetrated silver shorts and minipulating the price (50% price drop anyone??)... recently a different arm agreed to do some investigating on CFTC... Linky
I am really interested in reading/hearing about good evidence for a bear case in Silver.
Also, couldn't we take advantage of the desparity between the spot price and the actual purchase price of silver? I'm not really that familiar with the workings of the commodities/futures market, but couldn't someone just purchase a contract at the current spot price and instead of closing their position, accept delivery of the product??