What do you think will happen to Silver in the next few years??

Notes from the Business section today;

"Price of oil fell to a 10 Week low after Mubarack resigned.

Consumer confidence ( Rutgers/U. of Michigan) for first part of Feb climbed from 74.2 to 75.1, the highest in 8 months. The index averaged 89 in the 5 years up to the recession, so still a ways to go.

The US Trade deficit widened for first time in 4 months on higher oil imports ( not from China by the way), but exports continued their upward trend. In 2010 exports rose 21% to 1.28 trillion USD, sharpest rise since 1988. US passed Germany to become #2 below China.

China will drill 1350 wells across 8 northeast provinces in effort to save crucial wheat crops damaged by the worst drought in decades. They are spending 1 Billion USD to fight the drought. They are currently the largest wheat growing nation.

Vietnam devalued their currency by 8.5% as they have inflation over 10% and a worsening trade deficit. It is the 2nd fastest growing economies in Asia below China."

( most are paraphrased, but kept in quotes anyway.) Soft commodities have a ways to go in my opinion, and will definitely affect whether people buy silver/gold or food. IMO. If industrial demand is really increasing, then steel, aluminum, and especially copper I believe will out gain pm %wise.

Jim

 

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It's going to go up, up and away. $100 silver or $2000 gold isn't far off, especially if the ASEs and the AGEs continue to break sales records, and both silver and gold are running out.

 

I can see a scenario where politians "ride the wave" of recovery a bit too long and interest rates increase as a result. Higher interest rates will likely put downward pressure on PMs. Other factors might offset higher interest rates, but it's not a given.

 

There is not a real shortage of silver and gold. There are enough above gound stores to meet consumption demand for years to come. The majority lays in raw state form in warehouses backing ETFs, safe deposit boxes as bullion coinage and etc. From a real consumption standpoint - economically the majority of annual silver and gold production is surplus. This is one of the big differences when compared to other commodities. Physical holdings are risky when the market trends down. Traditional cash markets acquire surpluses very quickly and you cannot rely on real consumption to eventually clear the glut. Lquidity could become a problem. The price spead offensive. I mean 35 million 2010 ASEs - you'll almost have to give them away to get rid.

 

+1 :thumb:

 

i think silver will exceed $40 an ounce and head towards $50 an ounce by the end of the Sep-Nov 2011 window

after it gets close to $50 by late november 2011

prices will drop back to around $35 an ounce by feb 2012 ... that will be the new floor on prices

then silver will run up towards $70 an ounce by late november 2012

however I think the real price explosion will be in food commodity prices (wheat, corn, etc) ... i wouldn't be surpised to see those prices quadruple in the next two years

 

...then the world ends a month later (21 December 2012).

 

I do not think the World will end per the Myan calendar as predicted. I do think that Silver will be pushed upward by the inflation in food prices (commodities in general) we are seeing already. How much? Who knows for sure. My plan is to have 200 oz in the event paper money is valueless. At least it will act a a tangibile source of value in which to trade with.
Yes, there are millions of oz of Silver out there, all I want is my little stash.

 

Yep, yep & yep

 

This you would expect from a weak dollar policy and a tough environment for domestic oil production. Thanks for the market update. :thumb:

 

Wrong ...

Look in your history books ... in the period from the 1975 to 1980

Interest rates rose up to 15% ... at the same time PM's soared (gold and silver hit what were at the time new records ... $800 and $50)

The Fed was raising rates trying to stem inflation ... which was run-away



​

 

Yapoo - I just noticed your posting concerning the fair tax vs income tax. The point that you are missing is Income tax is levied against profit - not gross sales. The manufacturing sector is a high volume enterprise with a low net profit margin - typically 6% to 8%. A 30% tax levied against 8% of gross sales does not equal 23% - it equls approximately 2 1/2 %. There just isn't enough money in this fix to save US manufacturing. I believe the problems are much broader than this and the tax code is one of the lesser ones.

 

You are correct but so is Yak. History shows PM's both rising and falling in the face of higher interest rates. The key is the strength of the currency and the relationship of Fed funds rate to the rate of inflation. We have even seen both this year with rising interest rates in China.

 

The Fed is making the EXACT SAME MISTAKE they made in 2002 and 2003 ... they left interest rates too low for too long ... which caused prices to soar (including oil, housing, gold and silver, and food) ... the 2x to 3x rise in housing led to the housing bubble and subsequent economic collapse in 2008

This time the pop will be bigger because rates are being left lower for longer

We will see the biggest price rise in food because of a perfect storm of rising world population, crop failures due to climate change (already this year the australian wheat crop failed due to record floods, and the china corn crop is near failure from a severe drought), the burgeoning of the middle class in the thrid world who want to eat better ... did you know that in the worlds total population ... 1/3 are well fed ... 1/3 are malnourished ... and 1/3 are starving (and that is today) ... this will only get worse ... we can all live without gold and silver ... however we cannot live without food

U.S. housing will see the lowest price rise because the US govt never allowed the housing prices to fully correct ... (they have been keeping them artificially propped up) ...

Silver and Gold will nearly double in the next 2 years ... as more people start to see the fallacy in paper fiat currency ... where you can print as much as you want.

Energy will also rise 2x at least and probably closer to 3x.

It's going to be an interesting 2 years

If you want to keep up with rising prices ... invest in commodoties like food, energy, precious metals ... the worst place to be will be bonds (which fall in price as interest rates rise)

At some point ... this next inflation bubble will pop too (like they all eventually do) ... then the next recession hits

But before that ... we will have a 2 or 3 year inflation-led boomlet (just like we had in 2005 to 2007)

So try to make as much money as you can in the next boomlet ... then sell and go into cash (and hunker down) for the next deflationary downturn

 

Climate change! ... Argg

 

I had a comprehensive response all typed up, but lost it because I had to log back in! :headbang:

All the points I wanted to make are covered here FairTax.org.

The most important thing the Fair Tax does is change our society from a "consumption based, welfare state" back to a "savings based, self-reliant state". In other words, we become Americans again. :hail:

The media, politicians, and corporations paint the Taxed Enough Already "Tea" Party movement as a selfish Right of Right fringe movement (almost like the Nazis or KKK).

It's a grass roots, common sense movement of all races...somewhere between the Democrats and Republicans...much like the Ross Perot supporters of 20 years ago.

Fyi...CSPAN covered the Senate Finance Commitee hearings on taxation two weeks ago. Every PHD economist at the hearing supported the REPLACEMENT of the Federal Income Tax with the Fair Tax.

Oh...and the Fair Tax will make the dollar stronger and lower PM prices. (back on topic!)

 

What will happen to Silver in a few Years? With everything being published and our own politicians speaking, it seems like a no brainer to me to buy Silver, gold, platinum, pallaidum, copper, corn, rice, any needed commodity.Yes weapons are a commodity or soon will be.


http://www.cnbc.com//id/41523008

Even corn is in the news! http://www.marketwatch.com/story/corns-rally-feeds-a-global-food-fight-2011-02-11?siteid=rss&rss=1

http://www.telegraph.co.uk/finance/...trauss-Kahn-calls-for-new-world-currency.html

And yes even our Real Estate Moguls are being vocal.
http://money.cnn.com/2011/02/10/news/economy/donald_trump_cpac/index.htm?section=money_news_economy&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_news_economy+%28Economy+News%29&utm_content=Google+Reader

I think I will try to increase my position in silver more so that my original plan.


Does anyone know if this is true??
http://www.islamtimes.org/vdcc1sqp.2bq048y-a2.html

Have not see it on the news yet. Then again I do not watch much tv.

 

I guess it is true!

http://www.islamtimes.org/vdcc1sqp.2bq048y-a2.html


http://www.islamtimes.org/vdcgux9n.ak9tu4j5ra.html

 

Well, that certainly sounds like an objective and well-corroborated report. :rollling:

 

I DNT KNOW ABT SILVER BUT WAT ABT GASOLINE PRICES!!! by the end of the year its predicted to b over$5!!
wat r we going 2 do then? I gess invent solar cars so the poor cant afford a car that doesnt run on gasoline or gasoline. Of course that is after we're all put out of work like my family!!