Why isn't silver going up.

The play would probably be to short gold and buy platinum since the spread will probably increase regardless of where the metals go.

 

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The wise people bought into metals of any colour long enough ago that blips etc don't really matter. Metals are a long term insurance policy - not a short term panic remedy. I am into my silver at $4.50-6.00 an oz - I don't care if it plummets to $20.

 

Yes, but with the uncertainty out there, I believe that could be a high risk play today, too risky for my blood. In more normal markets I might have the stomach for it.

 

Actually gold is not a superconductor. Measurements have been made on gold at temperatures down to 0.001° above absolute zero with no indication of loss of electrical resistance or sudden (negative) changes in magnetic susceptibility (indications of superconductivity). For that matter, silver and copper, platinum and palladium are also not superconductors. If you are interested in superconductors and want to know what elements are superconductors, look at http://www.qdusa.com/sitedocs/Quantum_Design_Periodic_Table_2011.pdf

While silver is an industrial metal along with platinum (used in catalytic converters, etc.), it is also a precious metal (which used in jewelry and to be used as a medium of exchange e.g., pre-1965 US coins) which is why it is listed on the daily financial indices.

 

I'm thinking that it will move all over the place in the next few months and will settle around $40 by the end of the year. It seems to follow the world economy but I'm not sure which way in the short term. In the long term, the debt issues of Europe, US, and Japan will push it up; I think. Who knows in these crazy times?

 

Silver isn't money. It is industrial AND a little bit of money.

GOLD has been the story and where people were running to. People were in a gold frenzy and the other metals suffered. Gold IS money.

Wait for it. Silver will move in due time. Don't panic. If you do, you'll lose.

 

To add to this: gold is also an industrial metal used for PCB manufacturing - not that it has anything to do with the rise or fall of gold.

 

Are you seriously saying that U.S. law should be taken as a source of economic principles?

 

I think that it will climb as gold settles higher and universal distrust of currency causes many small investors to opt for silver as a more affordable insurance.

 

I'm starting to see reports that, even with gold at record high prices, the flow of gold scrap is drying up. Lots of people have already sold all they care to part with. In fact, one article stated that recycling worldwide usually meets about 40% of the demand for gold, and reducing that supply stream could drive prices even higher.

I haven't seen similar reports for silver, even though I sort of expected the same thing to happen.

 

The Supreme Court once declared a fruit to be a vegetable. A corporation a person. Money is speech. Wise guys, that Supreme Court.

 

This isn't surprising since a huge amount of gold and silver scrap was melted in 1979-80.

 

The article I read was discussing decreases over the last few months, though, not multi-decade scales.

 

"Scrap" usually included large scale industrial scrap along with grannies tea set. I would be careful reading too much into that figure without knowing whether:

1. Industrial usage going down due to price, which reduces scrap but also demand

or

2. Industrial customers are holding their scrap with the view of higher prices going forward.

I am not saying either are true, just a concern I would have before putting too much weight into scrap declines. My stuff isn't scrap, but it is available for a price, that price just hasn't happened yet.

Chris

 

Gold is not a superconductor. It is a good conductor, but not as good as copper, silver, or aluminum.

Or gold is way over valued and should be a lot lower.

 

Its really $41 a oz.

 

I bought Peace dollars in 1980-1982 for $45 to $50 each. Remember what goes up will come down sooner or later the trick is to buy low and sell high.Why not sell some of your silver this way if silver drops you won't feel so bad, and if it would go up you did not sell all of your silver. When dealing in stocks if I can sell some to get my starting investment back then the stocks I have left cost me nothing. And people forget silver and gold are a commodity and should be traded as such.

 

The point is that the "scrap" in the hands of individuals and families can only be melted once. A lot was used up 30 years ago and it is doubtful that large amounts have been accumulated since then. So the "wall of metal" that has been expected to hit the market as prices rose never really materialized because it doesn't exist.

 

I would just point out, though, that there is a growing "wall of ASE's" building every day. They might be stronger hands than those holding grannie's tea set, but they can also be fickle and tempted by "hot" investments.

Just saying man. I still argue that this severe increase in bullion sales at some point is going to affect the physical silver market especially.

Also what Jeff was saying was that why after 30 years it is decrasing now? That is a fair point, and would refer to my comments on the nature of "scrap".

 

Just read an article that pertains to this thread, basically saying what many already know, that silver's industrial and monetary qualities are counterbalancing each other and holding the price steady. Ironically the usually most volatile metal has been more stable than anything else as of late.

http://www.mineweb.com/mineweb/view/mineweb/en/page32?oid=133552&sn=Detail&pid=102055

I am also of the impression that there is very little scrap left out there compared to traditional stockpiles since so much has been used up in the last 50 years, and especially the last 10; silver that had been accumulated over the course of human history that was used up in a fraction of that time leaving the scrap supply the thinnest it has been in over 700 years. While it's true that investment silver may be the resting place for a lot of that scrap and is not accounted for as such, barring discovery of a new major deposit I do not think we will see the market flooded with physical silver. Even then it takes time to get a mining operation under way. If the price does rise substantially it will probably become available gradually since price targets vary from person to person, as opposed to becoming available all at once so I don't think the bull market will care much.