Today Silver Can Reach $2000 an Ounce

I say there is far more to be mined. We just got to drain the oceans to get to it.

 

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Don't you guys know that in 1964 Miss Pussy Galore and company gassed everyone at Ft. Knox, exploded a stolen atomic bomb, and irradiated all those 100s of thousands of tons of gold making it useless?

This is why there are only a reported 164K metric tons in the entire world.

 

Welcome to the forum silvercoin29! There is no need to repeat large sections of your original postings in each following postings.

Most likely. Please read the rules section as we are more restricted than many other forums, and we do have members that are less than 12 years old, and rules on respect for all including them.

Thanks

Jim

 

For perhaps the first time ever, I have to agree with you. LOL

I thought this was pretty common knowledge as well
Guy

 

I have one ounce of gold. I hire a lawyer to write a contract to sell it to someone else.

Now, they hire the same lawyer to write a contract to sell it back to me.

We repeat the process four more times.

Wow! Our lawyer, who deals only with me and the other party, has sold 10 ounces of gold! Clearly, there are ten ounces of gold -- the five that I've sold, and the five that the other party has sold! Further, I and the other party each have five ounces, because that's how much we've each bought!

Now, remind me -- why am I wasting my time on this forum, when I could be out multiplying gold instead?

 

The ShadowStats inflation adjusted high for silver is over $300, but still short of $2000. Doesn't mean it can't go to $2,000, or $5,000, or $20.

As per MONEX: http://www.monex.com/prods/silver.html

"In 1900, there were approximately 12 billion ounces of silver in the world. Today, that figure has fallen to about 300 million ounces of above-ground, refined silver. This means that at current prices, it would only take about four billion dollars to purchase all of the above-ground silver in the world today."

I would have agreed with you before the smackdowns recently, but as we have seen there can be a margin hike any time TPTB want to keep the price low. Until there is a physical shortage anything can happen.


Welcome to CoinTalk!

 

The VIX is up about 10% today, price of SLV up about 5% with just a small increase in volume. GLD up 2.8% with less than average volume. I suspect some short filling as things in Europe are get shaky again. It seems obviously a fear trade as both PM and the USD are up. I don't expect a change in margins unless all 3 are up similarly the next couple of days on increasing volume. Europe get some resolution ( no matter how improbable), we will be back to yesterday. If one thinks Europe will get worse with citizen's interactions, buy PM or the USD/Euro funds. If the reverse, now is a good time to sell some PM and reverse the USD/Euro trade.

If I was a time traveler , I would tell you which way, but I honestly don't know, although Fear is a great multiplier of events. IMO only.

Jim

 

Farmers Will Drive Ferraris, Not Bankers: Jim Rogers. Gold $6000, Silver $600

”Agricultural commodities are the place to be in for investors,” points out Rogers saying that it will be farmers not bankers driving Ferraris in the coming decades.

Rogers and Faber argue that the US dollar is on a path to death and Gold prices will continue to rise on the declining dollar value. Both of them agree to Stansberry & Associates Investment Research founder Porter Stansberry that if you divide US gold reserves by the total number of Federal Reserve base money, you get something $6,000 per ounce of gold.

According to Rogers, governments have not addressed the underlying problems which triggered the crisis, but instead have "flooded the world with money." He argues that trying to solve the problem of too much consumption and too much debt with more consumption "defies belief," and will result in epic failure.

Read more:

http://www.commodityonline.com/news...will-drive-Ferraris-Jim-Rogers-24066-3-1.html

What's an investor to do in this scenario?

Buy hard assets, he suggests. Davidowitz says investors should own physical gold, silver and diamonds. He also thinks land is a winning bet, even suggesting young adults buy and work farmland.

"I think investment in farmland with water on it is a great investment. Finance will be less important," in the future, he says.

Davidowitz: The DOW Could Fall 6,000 Points. Government gone Mad

http://www.businessinsider.com/howard-davidowitz-dollar-crisis-dow-6000

Silver $600

http://www.cnbc.com/id/44373049

 

You guys have this totally wrong as you are looking at this from the perspective that it is the $ that has the stable value and it is gold and silver which is changing. Haha. The only backing the $ has is the full faith and whatever of the Federal Reserve. Otherwise it's worth nothing, zilch, just some high quality ink on some linen.

Instead the question that should be asked is when will the $ lose so much value that it takes $2000 of them to buy an ounce of silver.

At one time, not too long ago, 100 Trillion Zimbabwe $s would not buy an ounce of silver.

 

just yesterday I was thinking I need some rah rah to-the-moon good words about silver.
What a difference one day makes

 

You lost me when you equated $50 in 1980 to $2000 in today's money!
Sorry. Catch you in another thread.

 

He lost me when he said his company deals with more gold than what's in earth and moon put together...

Once again let me reiterate silver is an industrial & investment metal, its a great play if you think global economy will get stronger. However if there is WW recession but countries continue to print. silver will still take a pounding as suppliers empty their reserves, in other hand gold will rise.

 

You can't base the future on what the price of silver was in the 1980's for a few days, while it was being manipiulated by a couple guys from, I think, Texas. It's totally irrelevent.

Will it go above $100? Yes, but not because it was $50.00 in the 1980's.

edited for political content

I did have trouble buying silver up here in Canada a few months ago, but it appears Maple Leaf bullion coins are still available.

As for a University having a billion dollars to invest in precious metals, I find it appalling while most people are living day to day.

 

I would agree that silver would take more of a pounding than gold if the economy stumbles, but there are a lot more factors in play. Silver follows gold a lot more often than it follows copper, and the percentage gains over this bull run are pretty darn close between silver and gold.

Another thing is that right now bullion dealers are selling just as much silver as gold, dollar per dollar, which means roughly 50 times more ounces. Silver supplies are the lowest they've been in centuries, and the amount of gold available right now (7 billion oz) is no less than 7 times greater in abundance than silver, and potentially 20 times greater depending on who you source.

Also, the prices of gold and silver are set by paper exchanges. If the economy falters, and the TBTF banks exposed to hundreds of trillions in derivatives can't manage their debt then the price setting mechanism could potentially shift to a new methodology in which case we could be looking at a scenario where demand for silver is down, but the price is potentially up. I'm not saying it has to happen, but I don't think things are so cut and dry as silver following the economy like a lemming as copper does.

 

You make some valid points and we can argue whether silver prices can raise. But don't you agree that if silver goes up to 100 dollars fake silver coins from China will flood the market. Mainly because unlike gold, silver is a much lighter metal and fake lead/copper coin with silver plating can easily pass weight test?

 

What you need to remember is that there were thousands of articles in the late 1970s from some [fairly] respectable sources saying exactly the same thing -- end of the dollar, collapse of civilization, etc. And we had inflation and reduction in the purchasing power of the dollar since then, but nothing as bad as predicted. This isn't Zimbabwe. A government can give value to fiat currency simply by stating that it is the only acceptable payment for taxes under threat of imprisonment [or worse] for non-payment. They could do the same for silver or gold, but choose not to. And gold and silver would be fluctuating in value against each other and against the things they can buy even if fiat currency didn't exist. So don't imagine them as the standard for stability in the economic universe.

 

Owning silver and gold yes, but you should know that diamonds are controlled by a small group of people and there is no shortage. You can buy a diamond anywhere, drive around town and take your pick. Silver coins a different story.

 

edited for political content.

 

I do think we would see an increase in counterfeiting. Based on what I've heard from some of the old schoolers, this was a real concern back in 1980.

I don't think that silver is any more susceptible to this than gold however. Silver may be lighter than gold, but there is only one other metal that has a close enough molecular weight to dupe the scales, which is molybdenum. For gold that metal is tungsten. I have seen alleged reports of literally hundreds of thousands of 400 oz gold plated tungsten bars, supposedly a very high scale operation.

This illustrates one of the reasons why coins can be more desirable, because it's a lot more difficult to counterfeit something with an artistic design as well as the fact that even a generic 1 oz bar is a lot harder to counterfeit because there'd be a much thinner layer of metal to coat the fake stuff with, thus easier to identify. If Chavez ever gets his gold I would bet ounces to doughnuts he drills into some of it to be sure.

 

Why should I worry about events of 40 years ago relative to what I posted? They have nothing to do with what is going on now. Since you haven't provided any correlation this is argument is nothing more than a logical fallacy.