Topic: Silver shot up. - page 2. (Read 5926 times)

Yes, but gold is the prime monetary metal. Hold some of each, even if it's a fraction of an ounce in gold.

Sounds good. I was thinking about picking up a few bars of silver in the near future, maybe 5 months down the road from now.

Wait what, it has fallen below 10$ in the next 1-3 years??

You're mixing past tense and future tense in the same sentence there bud.

If you're trying to say you predict it will fall below $10 in the next 3 years then I guess I can't argue, since none of us have a crystal ball which can look into the future...

However, with Fiat currency devaluing every single day, the amount of Silver in the world being finite and the cost of mining always on the increase, I can't really see it happening. If anything silver is very cheap at $40 and an absolute steal at $30.

Hang on to see where today's dip ends up and then buy buy buy!!

Absolutely.

And the timing couldn't be more perfect, prices are on a little tumble today and may carry on falling through the week, so you can pick up a bargain at the bottom and laugh your ass off at the top.

I think too many investors simply could not resist that magical $1900 mark for Gold yesterday and sold like crazy, triggering a big sell-off on both Gold and silver.

As I said before, the two prices seem to be very much linked at the moment which is a very interesting development indeed.

Yes. Buying silver is a great idea, when it has fallen below 10$ in the next 1-3 years.

So, sounds like we should start buying and holding onto that silver for a few years, aye?

I'll second that.

The GSR is one of the easiest long-term trades to work, if you can sit tight and let it run; and is that ratio ever at a wall right now...

^ my man. right on.

Silver isn't ready to crash, in fact quite the opposite. Silver is under bought, and recently something historic happened.

Look at the shape of the Silver price compared to the Gold price over the past few weeks. Pretty similar huh? Now look at the Silver price compared to the Gold price over the past 6 months. Not similar at all right?

In the past, Silver has risen and fallen with stocks, and was being traded like one. It is now seen by investors as a proper precious metal commodity. Welcome to Gold 2.0!

Here's the interesting part: Silver as a commodity "should" be trading at a ratio of roughly 10:1 to the price of Gold, given global conditions of supply and demand. However, since the Silver price has been destroyed recently along with stock prices, it is currently around 40:1.

Now that Silver is being treated like a precious metal and not a stock, most serious investors expect the price to come up to between 20:1 and 15:1 in the next 2-3 years and then slowly slowly make its way to 10:1, a short term gain of 100 to 200 percent and a long term gain of 400!

Yes; yes; only if it can't be traded for food.

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It's because of two effects:

1) The global economy is tanking and will crash really hard, into the biggest crash in the past 250 years, which means this will be bigger than 1929. Silver specifically will crash real hard because i) it is used as industrial metal much more than gold, and once industrials turn down even harder, demand for silver will collapse. ii) silver prices have also been largely driven up by speculators , and many of them will run to the exit once the economy gets worse.

2) The charts are supporting the Silver decline. The last 2 months of advance is choppy and is best interpreted by a upward correction, which will be followed by a large decline below 30 $ in a swift move. Secondly, Silver is underperforming Gold, which is a leading indicator for most of the financial markets. The Silver / Gold ratio is down hard since spring 2011.

When would I be wrong?
Only if Silver makes a new high above 50$. But even if this happens, the crash is just postponed and Silver prices will eventually come back below 10 $ in the next 2-5 years.
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Isn't silver better than fiat in times of distress? Aren't precious metals supposed to be a safe heaven for people during crisis?

Silver and gold are "precious" for thousands of years. What if a new kind of crisis would come? Would their prices plummet to earth?

ok. I fully understand. no worries

Actually no. I think I have 0.21btc. Not worth the effort.

So, put your money where your mouth is. What about betting 10 BTC or 50 BTC. I am sure you have at least 10 BTC, or 50 BTC.

I'd bet a million bitcoins silver wont go below $20 in the next two years but I don't have a million bitcoins.

I don't know why people say the fundamentals are bearish for silver. Seems to me that silver is too cheap and their are some supply issues as a result. There is backwardation in the futures markets which suggests that those who would purchase silver futures contracts are now being hesitant because of worries about defaults. Too many futures contracts, too little silver?

Silver has industrial use in high tech applications which show promise on the industrial demand side. Many uses are in the growing high tech markets like such as with solar panels. It's a very useful metal and I'm sure there are many new uses for it to come.

And investors see silver as a hedge against inflation, similar to gold.

Where are the issues with the fundamentals?

Deal. I bet with you 1 BTC.

lol shit ill bet a bitcoin that by the end of the two years it will double! 1000% in 10 years doesnt lie man. also. crack pipes kill. jaaay kaaaay

Does silver correlate with the industry or with gold lately?

I regard SILVER as the exit from EUR and USD

Below 10$? Do I smell another bet? I bet 1 BTC silver won't go below 20$ in the next 2 years!  

According to technical analysis, perhaps. What about fundamentals? S3052 - correct me if I'm wrong but your analysis that suggests gold will drop below $1500 seems to be based on price chart indicators. Price action and analysis thereof can be deceptive; precious metals are not equities.

As can be seen below, the usual big short-sellers that include the bullion banks (JP Morgan, et al.) have been throwing everything at the precious metals, yet gold continues to move higher. How much pain they can endure remains to be seen but the more capital flows into gold and overwhelms the selling, the greater the likelihood of an enormous bout of short-covering.



Of further note, volume has been decreasing while physical gold demand has been rising. That can be interpreted as the commercials' refusal to supply large quantities of selling volume. If the buying does not abate, there will be additional margin increases or government interventions attempting to stymie demand; otherwise, uncontrollable price rise continues.

Also, should the dollar remain at its current valuation or even increase, interest rates must rise as well because return expectations are pressuring the rates into negative return territory. The deflation you expect would occur then. In other words, QE3 is imminent unless Obama suddenly grew a spine. The USD will drop below .72 as Jim Sinclair has suggested for many years.

Silver is experiencing the same conditions as above, only with a delayed inflow of capital. Just as large sellers can hit the precious metals in sequence to drag the others down, capital inflow into the main PM stalwart (gold) eventually attracts flow into silver (more so than others) which slingshots the relative gold increase (being a smaller market and more volatile based on large capital shifts). This is plain to see by tracking the gold-silver ratio, volume and open interest alongside price.

What we are witnessing here is almost guaranteed to be yet another case of a pump & dump in the PMs, just at a much grander scale. First, demand must taper off; with it increasing, that point can only be significantly higher than the current price level. The USD will certainly experience a rally and gold will definitely be hit hard, but from a much lower USD and a much higher gold price than at present.

Again, look at more than price action; the world is not made up squiggly lines on charts.

You scaremongers are cute when you're desperate.   

hurrdurr silver is only a industrial metal and will crash.... I hear it every time, nevermind the long-term trend