How many buyers will there really be ?
jdimmick
Posts: 9,935 ✭✭✭✭✭
The most frequent question I get asked in the store now more than ever, if silver reacches some obsurd level like 45.00-50.00 an oz, who the h is going to be buying at that level.
That would be something like 34-35x face ??
That would be something like 34-35x face ??
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edited for a typo.
<< <i>if silver reacches some obsurd level like 45.00-50.00 an oz, who the h is going to be buying at that level.?? >>
People that expect it to hit 65.00-70.00 an oz. Same thing was said when people were buying at 15.00-20.00 an oz.
When gold and silver move together, it signals the coming end of fiat money.
<< <i>I bet if you asked 5+ years ago when silver was $4 who would be buying at $20 there would be no takers. >>
I am one of those people.
roadrunner
<< <i>Who would have ever thought of buying the DOW at 5,000-10,000 in the later 1990's when it had been under 1,000 in 1982 and under 2,000 in 1987.
roadrunner >>
And if you were listening to the radio, to "Smart Money with the Dolans" they were telling you the market was overpriced in the 1980s and not to buy.
<< <i>. Most people I engauge in conversation at the shop state something about the U.S dollar not worth....... or when the revolution starts....... >>
Not a necessarily a slight on TN; step back and pounder the gravity of that statement, to actually engage in a conversation with a person who thinks a "revolution" is forthcoming let alone one who whishes for it is bothersome to me and even more troubling that they make the proclamation under the guise of a twisted sense of patriotism. Once forgets how many disconnected sad little people live in random parts of this country that confuse it with the center of the world. They scream that they are the true Americans but they are a very small if not vocal percentage.
Its hard to predict right now if there will be buyers at a price of $50. IMO having buyers at that point would require the price of silver to be within a trading range of 40-50 for quite an extended period of time to get people used to paying those prices, a base and consolidation is necessary to have a great amount of buyers at $50/oz. It may be possible but not in a parabolic scenario.
If silver were to go to 50 within the next 2 months I dont think there will be many buyers since people were used to buying in the 20s and teens not too long ago. The problem with the current moves is that there really is no support and no real base so people are not quite used to the idea yet of paying prices in the upper 20s. People may be getting used to now at buying in the 20s but it will take some time for people to get used to buying in the 30s, 40s, 50s and beyond
<< <i>The most frequent question I get asked in the store now more than ever, if silver reacches some obsurd level like 45.00-50.00 an oz, who the h is going to be buying at that level.
That would be something like 34-35x face ?? >>
In order for silver to reach a market price of $50 per ounce, that would mean that, quantity-wise, there are as many willing buyers as sellers. If there were no buyers at $50 an ounce, then silver would be worth less than $50 per ounce. The market price is determined by supply and demand.
An authorized PCGS dealer, and a contributor to the Red Book.
<< <i>just to be a counter point I am selling at 30$ all of more none core collection silver. even if it goes up a little more I still took a nice profit and I don't think silvers natural price point is north of 20$. I could be wrong but it has the feel of a bubble and the same arguments I hear sound very familiar to the ones I heard for houses/.com/oil at 160$+ ect. >>
I agree with your second statement. Recent article:
WSJ Article
As more people gain confidence that the economy is improving - in a real, tangible sense - silver will correct. People are buying as a hedge at this point. That is driving the price.
All IMHO.