Is anyone buying silver at $44.56

Agreed. The thing is that a contingent of the status quo crowd is not satisfied to have a factual discussion focussed on creating a well reasoned argument for metals going down. Rather, the focus becomes supporting one's negative rhetoric and chastising those with a more, well reasoned bullish sentiment from exciting irrational exuberance in the newbies. The negative crowd "protecting" the hoards of new people to the forum from the "to the moon" people.

As you mentioned a lot of this discussion was happening around the $26 mark and, at the margin, it looks like some were “protected” from $20 of upside. It sort of works both ways. I can totally respect those that walked the talk and have sold most of their position. From reading some of the recent posts, many in the negative crowd are still holding theirs ... curious.

The discussion pro and con should be presented and I expect people to be passionate about their position, but one cannot presume to know the future. In this case, time has declared the underlying analysis of the bullish sentiment the winner.

As Desertgem mentioned, no trend lasts forever and neither will this one. The next month will be very interesting for PM’s. I too am in a holding pattern to see what comes out of Bernanke’s speech, the debt ceiling talks in Washington and the end of QE2 before making any moves. I expect to be able to buy in the $37-39 range this summer.

Bluesboy65

 

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I buy a little silver with every check I get, it is my way of saving money. I don't believe we will see silver fall for quite some time, with the exception of some mild correction when silver finally settles down to a stable price at around $130.00. I am not an economist or expert, that is just my opinion after watching things for over 50 years. I will keep buying silver until I have to sell it all to pay for my upcoming funeral!

Juan

 

Zirbg: Foreigners dumping dollars and buying silver? Good one - that could be a huge part of it. Why wouldn't they buy Gold and/or Platinum as well? Seems like silver would be the "dollar" of currency. Wousdn't they be after $100s? I guess I need to compare all metals on a single graph, but it seems like Silver has a mind of its own here recently.

Silver moved around a lot today, but I needed 87 cents to be on target for my one-week, $51 price. It just seems like it is up over a dollar about every darn day is all. Today threw an egg in my face. I am not selling silver for fear it is going up more, but I have to admit I am pretty darn scared to buy any right now, either!

Does anyone have any idea on whether silver is MOVING physically? I mean are there barges of silver shipping from the US to Africa or from the Mid-East to Russia, or what?

Something is amiss - we just need to figure it out so we can sell at the top, and then buy back in at the bottom. Is this too much for a poor coin collector to ask? *shesh*

 

I have a bunch of those ONZA's. Are you getting them at spot?

 

Yes, I buy them at spot. I go to the American side of the border once every two weeks and I stop by a little pawn shop one block from the border and they usually have these coins and other mexican silver. Often times if I buy five or more I can get a dollar or two off of each coin, but usually I don't have that kind of money to save with silver.

Adios from south of the border, Juan

 

Interesting article today: "Is Your Silver Really Yours?" http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=19718

Remember also that banks work off of a reserve rate - like 8%. But that is okay (for the most part) because they all have the SAME reserve rate. But money, if we all "took delivery," is just not all there - there is not enough printed to go around. I wonder if that is true for silver??

Someone onge told me that if everyone paid off all of their debts, our economy would collaspe because there isn't that much money. Huh?

For anyone keeping track, my prediction of $51 silver this week is looking pretty bad right now, I have to admit . . . $46.09, down $1.92 - 4%. That is amazing.

 

Just a correction, it will level out and then continue a slow rise.

 

1

 

Ok. Now I get it. There's a contest going on to see who can make the most outrageous statment without everyone laughing.

Honestly, where do people dream up this stuff?

 

I can't answer most your other questions (not quoted), but wanted to add that I recently read China's currency was silver ingots up until 1911 (just 2 years prior to the creation of the Federal Reserve interestingly enough) going all the way back to BC (used only by royalty for the first few hundred years). Now that the Chinese government has re-legalized and is encouraging owning PM's it makes sense to me that the average Chinese citizen will seek silver due to the historical significance there as well as that it is the most affordable in its class. Having such a large portion of the world's population, it makes sense to me that they are playing a role in the recent run up, but that's just my interpretation.

 

http://www.bochk.com/web/common/mul...nvestment&level_2=precious_metals&fldr_id=251

From the bank of China Webpage. Please note the section I have highlighted in red. I do not know why so many goldblogs and sites make such a big thing about Chinese individuals ownership of PM. China has a history of financial manipulation. Does this action do anything more than individuals giving the Bank of China Yuan in exchange for PM that is stored at the bank and will not be given delivery, so convenient for China to change their attitude and keep the PM as reserves.

In the US would you put money into a US Gold account, where you could not get delivery, not be sure the gold would be there when you wanted it ? This was a smart move by the Chinese government, and not for the gain of their citizens , IMO.

Jim

 

Hey, I bought ten of those onzas yesterday at 45.00 each a couple of blocks from the American / Mexican border. I thought it was a good price!

Juan

 

Seriously. There are not enough US dollars to cover all debt. Just the US Federal debt is $14 Trillion, right? Well, hate to point it out, but there are only about $700 Billion in printed dollars. This means that if everyone paid off all their debts, there would not be enough cash to go around. Start to figure in homes, cars and credit cards (which don't have ANYTHING backing them [except trust]) and you can see we are WAY short.

Well, I missed my $51 target on silver, but who knew the CME would raise the margin rate (TWICE!)? Shows you that the government CAN manipulate markets - very easily! Amazing the "correction" that took place, isn't it?

 

No question. But I think it would be interesting if someone opened a gold bank where you could move cash between checking and physical gold in the US. How cool would it be to go into the bank and walk out with bars of gold of various sizes? Or maybe even deposit and withdrawl in graded coins on some daily pricing schedule??

 

I hope you realize that there isn't supposed to be $1 in circulation for every dollar of debt or for every $1 in other asset values. I hope you realize that this isn't the way the economy works. I hope you realize that never in the history of the nation has there been $1 in currency backing every asset. Assets are denominated in dollars and carry a price or value denominated in dollars, but this does not mean that there is supposed to be $1 printed for every dollare of value for every asset.

 

Cloud's right on the major point, I would also just point out "dollars" in world trade are not just FRNs, they are all US treasury products. Trading "dollars" is really trading in Treasury bonds, notes, etc. Our debt is the real world dollar.

But yeah, money is only needed to facilitate trade, it has nothing to do with backing up any values. In the old days when money was gold coin, how could the gold coins "back up" asset prices, since they themselves were assets? Coined or printed money simply is the lubricant, the temporary store of value, to trade one asset for another. Money by itself isn't a value, its a store of value, to be used to purchase another asset.

 

I wouldn't touch that offer with a 100-foot pole.

 

Although it's been a while since I have been there. I used a coin/gold dealer in the Los Angeles area that did what you refer to. Any amount of Gold, Silver or Platinum at least for as much cash as I was ever able to come up with, available for the current "sell" price. Any amount purchased for the "buy" quote. Right off the tickertape.

There were many people from other countries in the area that are more attuned to dealing in PM's than most of us and it seemed they were doing a brisk business .

gary

 

I'm not buying at $44.56, or even $37, but last night I did BIN a handful of $5 and $10 sterling Olympic commemoratives at effective silver prices of $29.06/oz and $24.22/oz, respectively. I'm not certain that silver won't drop below those prices, but it seemed like a reasonable gamble.

 

I agree. The debt is money and the money is debt.