Silver $39/ounce Tomorrow

Which part of my explanation did you have a hard time understanding?

 

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They only need to be right one time.
They will always go back to that one time to prove that they know what they are talking about this time.

 

If a dollar's worth of "real money" costs me $23.00 to acquire, and buys me one dollar worth of goods at the places I shop, I think I'll choose to continue using "fantasy money".

Of course, as my tag indicates, I'll continue doing my part to enforce Gresham's Law as well.

 

If current fiscal policy is continued, PM prices may not rise dramatically, but I do not see them dropping. My humble opinion, look forward to decent gains in PM's over the next 4 years. That is not politically based, it is based on current and anticipated fiscal policy - no matter who may be in office.

 

Yep.

Ever read about the "financial consultant" in the 20's who sent out 4000 letters, half predicting the market up, half the market down next week. The next week he sent followup letters to those who happened to receive "correct predictions", again half up half down. By the 4th week there were 500 people who had received "correct predictions" for 3 weeks in a row. For those 500 he sent letters saying he wanted $1000 for next week's guaranteed "correct prediction".

The man retired after that one scheme.

This is why I am a jerk and call people out on wrong predictions.

 

Your crystal ball is much better than mine – mine only shows the price right now.

 

Okay, this thread is accumulating some useful observations despite the OP's original intent. But can't we at least get the post spamming his website removed or edited?

 

Wednesday 2pm, silver down 0.4%, above-average volume.

 

Gotta make a prediction every once in a while, but I would not make my living by it.

 

Final Wednesday quote on SLV, down 0.6% on slightly higher-than-average volume. I predict I will have Wendy's chili and Kroger's cole slaw for dinner; symbols WEN and KR. Buy, BUY!

 

I'm just exchanging them for another type of money so I won't buy things I don't need. It helps me save money, if not I'd be buying cd's or Piggly Wiggly's deal of the day.

And when I want to buy something I really need or want I'll just go change it back to the "fantasy money" if needed. It's not like im buying chips & gas with walkers.

 

Luis,

It is obvious that I never thought you would spend your halves at face, but I find it interesting, that you would call silver "real money" when you fully understand that you cannot spend it. It is even more interesting that the stuff you exchange it for, the stuff you can actually spend, you refer to as "fantasy money"

One of us just doesn't understand this fiat currency stuff

 

Yes, and it's YOU, Mike. When hyperinflation comes, and we are past the point of no return, all those FR notes will plummet in buying power, and your bank deposits, savings accounts, and stock equity will begin to disappear.

Go back and look at the major hyperinflations since WW2, and you will find that people with gold and silver had a much better standard of living, despite the fact that the average middle-class family had its savings wiped out.

Too bad we don't have a member from Argentina, Brazil, Hungary, Poland, Yugoslavia, and Zimbabwe, to name a few, to tell us what things were like.

Here is the future. Well, not quite the future. These bills lasted about three weeks, to be replaced by 1 to 100 TRILLION Dollar banknotes.



Keep in mind, the only logical purpose of acquiring gold and silver is to preserve the purchasing power of your current assets. In your recent lifetime, you have seen gasoline triple in price. Welcome to a little taste of hyperinflation.

 

"Real money", that maybe I should've placed in "" at the beginning, is just a term I use because that's what was used back when paper currency was backed by silver, as you know im sure.

I simply exchange a portion of my paycheck for PM investing purposes and of course the occasional coin for collecting.

The term "Fantasy money" as what we currently use, was not mentioned by me, just restating what someone else called our current dollar.

 

But the connotation of calling FRN's "fantasy money" is that they are false. What IS money? Its a means of exchanging goods and services. As such, the dollar is the only REAL MONEY in the US currently. Everything else is the "fantasy".

The person calling the dollar "fantasy money" had an agenda as to why he did so, probably to get you to give him some of your "fantasy money".

 

Fantasy money is great, I heard they're printing 40 billion of it every month now. Guess they can't get enough of this stuff.

 

My bad Luis, I really thought you were heading down the path the only PM's are good, and all fiat is bad.

 

Indeed, there are fungible issues with PMs. In my view, this divergence between PM and its 'use' is mostly at odds over short periods of time. Consider if we have high monetary inflation impact us sometime soon. One expectation is that PMs will take less of a hit so long as they can practically remain unconverted. So the anti-inflation trick would be to expose as little of one's wealth to inflationary theft as possible over any given period of time (e.g. maintain the smallest cash position possible). Of course, that is not a simple matter since conversion on an as needed basis is bound to be a challenge.

Adding complexity to this is the volatility of your particular PM of choice. PM doesn't exactly follow cash exchange ratios. Plus, what happens during a deflationary swing? You'll want the least wealth trapped in PM then. It seems all to easy to be on the losing end of an unpredictable future in a variety of ways.



Regarding $39/oz today...well so much for that! It moved with the market, just like it usually does of late.

 

It may well be that stock will rise sharply in a hyperinflation scenario...at least to the extent that it is backed by company/fund tangible assets. Sure, economic mood would take its toll, but going to zero is not too likely for all stock unless we are expecting traded entities to close up shop and burn all their assets to the ground to avoid any recovery of loss.

 

Great, I wasted all last night counting and weighing my silver bullion to get it ready to sell and not only did the price not go to $39/oz, it dropped.

I guess I should look at the bright side, I now have an accurate inventory, a silver lining in all of this....