Silver prices

This is what made silver in particular an interesting investment back when the price was in single digits. All of the silver miners had either gone out of business or were operating at a loss and struggling to survive. At the same time, inventories of above ground silver were shrinking. So it seemed an easy call that either the price would have to rise, or the world would have to learn to get along with much less silver. The same applied to most of the gold miners which were operating at a loss [except for the few with high grade deposits]. Now, it isn't as easy a call as to whether the price will continue to rise.

 

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Interesting discussion above. Mostly anti-gold. However Gold is skyrocketing while silver is pretty much stuck at $28. When people move their money out of currency for safety's sake, they head to gold and no where else. No matter what anti-gold people say about gold, it is and has produced huge returns for more than a decade for people who bought and held it.

 

I have no idea how our discussion was anti-gold. I have not really looked at the cash costs or full production costs of gold mining. My main interest in gold would be in coins I wish to buy, so I am not anti nor pro gold really.

My wife's interest in gold is high, but she is a lady and Thai, two things that tend to lead to high interest in gold jewelry.

 

The Universe does not revolve around you.

 

Well maybe when you post, "discussion above" you may link to the post you are referring to, and not post such a message directly beneath postings Cloud and I were posting. Gee, I guess I am wrong for assuming "discussion above" meant, well, the discussion above your post.

Throw us a bone, give us a clue what the heck you are talking about.

 

meaning what exactly? What does that have to do with the conversation. While you sort of induced me to write, let me remind you that your 100% wrong about gold being a good investment for more than a decade when a few years ago it was hovering at about $300 an ounce. Additionally, it is obvious that your not reading what was posted since it has already been discussed that a few nutcases are driving gold prices artificially high.

If your going to reply, please do so without being snyde or hostile.

Amanda

 

Uhm, gold is up 3.4% on the day, silver up 3.2%. Everything you just said about gold equally applies to silver. You really shouldn't complain about a particular behavior if you're going to engage in it. I like both metals just fine. They have gone hand in hand for the entire record of human history. I don't see why that should change, and the market doesn't seem to either.

 

No investing environment stays the same forever. The prudent investor, the one who wishes not to lose their investment absolutely CAN'T assume that past performance of any investment or investment type is any kind of predictor of future performance and I include gold in this as well. What one must do is look at the situation today and then arrive at some conclusion on what it means for any investing.

In regards to this, and your contention about the ~$300 price, that period ended in 2002. Gold crossed the $300 mark for the last time in 1Q 2002 and hasn't returned anywhere close to it since. This period coincides with the the government changing from running surpluses to running huge deficits, and the continuation of many misguided policies concerning debt (of all sorts) that made gold a very attractive investment. You can look the numbers up yourself, but this is more than a decade ago. As of today, this is a 437% return. Maybe your definition of good return is different than this.

"nutcases" driving up gold is an opinion. Nobody has produced anything that proves this. I would advise anyone who is investing in anything to ignore such information. It's as irrelevant as your opinion of me.

 

Bingo. Next time you post something, stop, repeat this to yourself several times, then rinse and repeat as many times as necessary.

 

The definition of insanity is doing the same thing over and over while expecting different results. Therefore we can conclude that central banks are insane, and are indeed nutcases due to continued monetary policy. Since they are the primary holders of gold thus keeping the majority of it off the open market, they are driving the price up by decreasing the supply. So nutcases really are driving up gold. I can also prove that 1 = 2

 

Another look at this behavior of the central banks is they simply hold gold because they know its true worth. i.e. For an organization which can create money out of thin air, which means it's meaningless to them, gold is the one thing they covet and will protect. Not silver, not oil, not truck loads of potatoes. They know the true value of the confetti they create out of thin air. Gold (as well as indentured taxpayers) is their asset. There is nothing insane about holding something with true value where the demand for it continues to rise.

 

Hi

I have no idea what your refering to but I know many many investment bankers as they are donators to our institution and none of them believe what your saying. The fact is that there is so little gold and silver that even an operation like the Hunt Brothers were able to corner the market (illegally i might add). No one in the banking world believes gold has value that US dollars do not, especially since you can not buy oil with gold.

Please refrain from making such unsubstantiated pronouncements without fact checking.

Amanda

 

I thank you for reminding me. My post was a low blow to Medoraman, to the forum, to you the staff, and everyone else and I apoligise to all of you for it. From now on my posts will follow the information your link and stick to the topic at hand. I should follow my own advice, stick to the message, and not make it about the person.

In the future, if you have an issue with me, and have the time as administrator, please send a message. I will certainly appreciate it.

 

I am somewhere in the middle on this. Silver definitely, far too small of a market to hold a candle in the global marketplace, or for monetary backing unless the price were to go astronomical, but gold on the other hand is perfectly suited for these things with its much higher price as well as greater abundance currently available for use.

If US dollars truly had the value that gold has there would be no need for central banks to hold it, not to mention the gold window would never have been closed. The fact that they do hold it illustrates that it is worth more than anything else to them, or else they would hold whatever else that might be instead. It may not necessarily be worth more than anything in dollar terms, but from a functional standpoint for how they operate it is integral. I am referring only to central banks, not the 'banking world' per se which may comprise of smaller banks that don't hold gold reserves, but rather merely borrow money from the bigger banks that do. It's not hard to find someone at your local branch who has no concept of real money.

To say no one in the banking world believes gold has value that US dollars do not is also unsubstantiatable unless you know the views of every single person involved.

 

which do banks hold more of, Dollars or Gold.

 

My commentary was about Central Banks. So the answer to your question is gold. By law, the Federal Reserve does not hold its own dollars as an asset. The Federal Reserve holds gold, US Treasury notes (debt) and similar items as assets. You can check this yourself on the Federal Reserve's balance sheet. It's approximately 8000 tons of gold. They also hold another 7-8 thousand tons in their vaults. If I have done my math right they control about 10% of the known above ground gold in the world.

So using the criteria that you have given, gold is the answer. This should also serve as the substantiation (my commentary about covet & protect) that you have requested.

 

Last few days there seems to be some up trend in auction prices in gold and silver coins, Take it for what it is worth but this could an indicator that there is belief the spot prices will maintain or go up in coming weeks.

 

Due to everything dropping on Friday except for metals, that seems to indicate metal demand is increasing as a default hedge. If it were an inflation hedge stocks and oil would be along for the ride. The silence of the money printers as Greece and Spain continue to face the same problems is not invoking confidence in the markets. I will be watching for the June 19 FOMC to possibly announce QE3. Usually they will use the rumor of QE to boost markets anytime things get rocky, but since they aren't doing that this time maybe it's finally time, but they wouldn't announce it in advance. The EU can always benefit from the Fed's dollar swap lines even if they don't do their own LTRO.

 

that's just wrong headed. why should the govt have any say in how/where I invest MY OWN MONEY. I invest in PMs to protect my money that I worked and paid taxes on once already from govt policy.