Silver is on the rise!

You haven't made any points -- just offered your opinion that the stock market is a fraud and bad investment. I fully concede that there are a lot of problems in the economy. If you look back through Cointalk, you will find that I am the source of much negative information. The point I am making [take it or leave it] is that history has shown that the best time to invest in stocks is frequently when things look worst. So the worse you make things look, the stronger the buy signal for value investors and contrarians.

 

Log in or Sign up to hide this ad.

They are lower than every month since August 2010. This is what 13 month low means. It was a sharp abrupt turn around in just 2 months. China was ****ed off the USA did noting about the debt and decided to sell off Treasuries in response. This, BTW, is old news by now.

 

But August 2011 is higher than August 2010. Actually, the numbers are close enough to call it flat. That would have been the honest answer.

 

If this is what you spend your time on, splitting hairs of English, then you really are not in a position to tell other people to stay out of investing.

In any case, since you won't address the points made, and you are making us suffer with nonsense such as this, I'm done with it as I don't want to take away from the OPs topic any further.

 

"split hairs and decimal points can make a surprising difference"

 

Laughable the amount of arrogance and pompousness that some posters have, though I must say there is always one on any board you visit so I suppose we are fortunate to only have one.

 

I spend a large amount of time in the investment world, so I recognize a line of bull when I hear one.

 

Totally agree. If PIIGS start defaulting I'm guessing metals are going up.

 

FWIW, if PIIGS default, that would likely cause another flee to the dollar which would result in the dollar-denominated value of PMs going down, not up. (For those who aren't aware, PIIGS refers to economies of Portugal, Spain, Italy, Greece and Ireland... y'know the parts of the European Union that are in perpetual "risk of default.")

 

Even if you take the most liberal of exposure numbers to PIIGS economies, the US Treasury's exposure is $641B. That is basically around 3-4%. The exposure of Europe's top commercial banks to PIIGS would cause a drop in the securities valuation of the financial markets, as well, which would drive up the dollar. The net result of the failure of PIIGS would be about a 5% bump UPWARD in the value of the dollar, which would also be reflected in a 6% drop in dollar denominated prices for PMs.

Now, the fun part is the "fear" factor. Fear mongering of the "threat" of this drop will precipitate in increases in valuation of PMs against the dollar, possibly as high as a 20% from pre-threat ($31.50) levels. The 6% drop also accounts from the same levels. This means you could see silver (as an example) go up to $37.80 as the threat of Greece's failure becomes more eminent, then see a near immediate (over 10 trading days) to $29.61. This is why speculating debt failure using PMs as a hedge generally fails for the vast majority of retail individuals. The CFAs have access to information and charting that indicate the likelihood of the last straw breaking (signal to sell) relative to media coverage of the potential breakage (signal to buy).

Edit: Long-term, I'm long PMs, specifically platinum and rhodium. I have current holdings in silver, as well. I hold gold, but I'm actually a net seller relative to silver/platinum/rhodium.