2011 GOLD high $1,500.00, SILVER high $24.00

Try buying silver at 3.5x face, XF bust halves at $40, and 1877 IHC for $100 and coming to this website in the last six months! I knew things had gone up, but DANG!

 

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Currently: In US Markets for 12/8/2010...

Gold: $1,392.30 -- High so far today $1,396.80
Silver: $28.90 -- High so far today $29.16
Platinum: $1,694
Palladium: $733​

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Drops started yesterday......don't know why, I see no reports as to why we should be dropping.....

 

Currently:

Gold: $1,381.20 -- High so far today $1,396.80
Silver: $28.30 -- High so far today $29.16
Platinum: $1,688
Palladium: $731​

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I thought Jim's comment in another thread yesterday was insightful and observant.

 

Interesting....thanks...

 

High gold prices will not let some buy . Lower silver might entice some then drive up the gold silver ratio.
Also if our credit rating takes a hit watch metals.

 

Currently (8:15 p.m.)

Gold: 1385.30
Silver: 28.53
Platinum: 1681.00
Palladium: 730.00

Such big jumps up, down.. are we less and less phased by such volatility because we are seeing so much of it?

 

Underfunding always makes the PM's fluctuate a lot, and I truly feel much of it is contrived. But we saw profit taking at $30 for silver and with the racheting effect, the bottom should be about $28 this round. IMHO

 

A long time ago ( eons it seems to me), PM prices were mainly determined by consumption by industrial, jewelry, coinage, etc., so movement was small and determinative by other sectors of the economy. Lately, it is more driven by financial weakness, greed, political scenarios, greed, grassroot accumulation, numismatic manipulations, and even greed. So, many of the factors are far from consumer consumption like jewelry, etc. So when small movements in the far past might tend to occur, these current factors magnify it greatly in either direction. The greater the fluctuations over a period of time ( volatility), the more these other factors are playing.


If you are buy and hold, say bought at $28, and silver goes to $30, you made $2 paper profits. But if you just hold, and it goes down over 2 weeks to $28, you lost the $2 paper profit, whereas those that sold kept it. If it then goes to $27, you are negative a $1, and traders buy to ride again. This can go for a fair period of time, slowly raising the average, so you do make some more paper profits, but that can go anytime, and is nowhere near the taking real profit at certain levels scenario.


Many are afraid if they sell, the price will go up and they will miss some paper profits, so they forgo the real profits. The amount of reward in the end will reflect the amount of risk. AIMO.


Jim​

 

Silver broke through the $30 barrier for the first time on December 6, 2010. Does anyone know the high back around 1978 when the Hunt Brother artificially inflated it trying to manipulate the market?
What makes it different this time is that now it is a WORLD MARKET, followed in the UK, Australia and Hong Kong.
A friend of mine (pessimist by nature) reminded me of that event but wasn't looking at the whole picture when he said "What is to stop some country from flooding the market with silver?".
I feel that with the world market the way it is, we're all in a bit of a fix, that silver is an excellent investment for the person that can not afford gold. Plus you get more BANG for your buck!
John

 

You've nailed it! (fear..) Today I had a thought for the first time: what if I COULDN'T find a buyer when I'm ready to?

Regarding all that you wrote about 'paper profit', numbers up or numbers down, it seems to me it only matters when you recognize the gain or loss, yes? Really, just talk until one does something with it, I think.

Lucy

 

That is a fair concern, as many will be selling with fear, if and when they decide to do so. Seldom do novices sell when the price is still going up, although that is the preferred time when determined. Selling when it is going down is much harder, especially for physical holdings, IMO.

I know of no one who could truthfully say they hit the buy/sell marks correctly each time. I certainly don't do it

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I sold a few rolls of washington quarters recently and went on=line to see how I did. Then I noticed that many on-line brokers listed Washington Quarters as "out of stock" or "unavailable". That told me to hang on to mine. It seems that when something is harder to get, it commands a higher value.

gary

 

I liked the long version of this post. Yet, wanted to respond to the last paragraph. Maybe part of the reluctance to sale has to do with a lack of other suitable alternatives to reinvest in.

 

Found this info on the web ...

Various numbers gravitate around $50 give or take a dollar or two. According to Paul Sarnoff's book "Silver Bulls", January 1980 silver contracts topped out at $49 with a low of $37 and a close of $44. However, Stephen Fay's work "The Great Silver Bubble", suggests that it went as high as $50.50 on the COMEX exchange but goes on to state that the record was actually set three days earlier on the CBOT exchanges where it topped out at $52.50. For historical purposes we go with the $50.50 on that notable Monday afternoon.
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The following four points taken from this web site (http://about.ag/debate.htm) were very interesting

1. The best estimates are that there are roughly 6 billion ounces of gold that could be sold without mining (943 million ounces by our count in government stockpiles and ETFs), but perhaps only 2 or 3 billion ounces of silver that could be sold without mining (482 million ounces in government stockpiles and ETFs, by our count). So there may be less silver available for sale than gold! That would suggest silver prices roughly equal to gold prices based on rarity or availability.

2. The biggest silver ETF (SLV) has a market cap of $4.9 Billion (as of 29 Jan 2010). As of 22 Nov 2009, total gold ETF holdings were 56.4 million ounces, worth about $64 Billion. That's 13 times as much money in silver as gold, suggesting that silver prices would go much higher if equal amounts were invested in gold and silver.

3. In March, 2008 there was an unprecedented shortage of 'retail silver' (physical silver in forms that all but the largest investors typically purchase). Most large bullion dealers were out of most or all of their silver (and their suppliers were out, too) for a few weeks. Again, in August, 2008, major shortages occurred. This could be attributed to the silver market being small, but if shortages of retail silver haven't occurred in the past, it's a sign that either [1] there is less silver available than before, or [2] investors are purchasing more silver than in the past, or [3] dealers were reducing their inventory (which doesn't make business sense). As one of these shortages began, The Tulving Co started selling 1000 ounce silver bars, suggesting that it was one of the few forms of silver that could be obtained (they are rarely sold in the retail market).

4. There are nearly no government stockpiles of silver at present. The United States used to have about 3 billion ounces of silver, but has gotten rid of it all. If governments want silver at some point, it will significantly increase demand, and therefore the price of silver.

 

I can't imagine why governments would want to stockpile silver, but it's possible. I just noticed the bounce from $28.50. I believe this phenonom is built into computer trading programs ? The $1.75 profit taking looks like the variation we have been seeing for some time now ?

 

I sold out at $44 and didn't pay any attention after that. But it went higher, I know. But I never felt I sold too soon. The crash was huge when it happened and it did it almost overnight, as I remember.

 

It was a crazy time ... I remember it too.
You are right ... the run up and the run back down did happen relatively quick
Here is a price chart from that era





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