If you don't Silver Stack you will be left behind

Discussion in 'Bullion Investing' started by SunriseCoins, Mar 22, 2015.

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Silver or Fiat which one wins in the long run?

This poll will close on Mar 22, 2045 at 4:18 AM.
  1. Silver

    75.5%
  2. Fiat

    24.5%
  1. longnine009

    longnine009 Darwin has to eat too. Supporter

    Especially if your one of those geeky lick & sticks.

    [​IMG]
     
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  3. Numismania

    Numismania You hockey puck!!

    Just ask Sunrisecoins!!! He refers to this as a "two bit loser forum"???? But...but...but he just LOVED (past tense feels soooo good when talking about him!) to 'claim victory' as the only genius here! I guess if the only forum he could lay claim to being a 'winner' on (and, boy, he was a 'winner' ALL THE TIME, just ask him.....oh, wait, we CAN'T now!!! LOL) was a "two bit loser forum", I guess he was KING of the "two bit losers!!!!
     
    micbraun likes this.
  4. Revi

    Revi Mildly numismatic

    The price is headed up a bit this morning. Maybe we've hit a bottom, but I'll bet it takes another dip when stocks start tanking again.
     
  5. bdunnse

    bdunnse Who dat?

    I bet it goes up then down then up then down then up. Or maybe it will go down then up then down then up. Hard to tell. But trust me, it'll be one of the two.
     
  6. Santinidollar

    Santinidollar Supporter! Supporter

    All you basically need to know about stocks now is the oil price. Probably most of the year end stock liquidation is close to done. Thursday and Friday were due to hedge funds selling everything to make redemptions. They've had an awful year. Now it's oil, oil, oil.
     
    Revi likes this.
  7. Revi

    Revi Mildly numismatic

    It may be time to stack again soon. The price may go down if the stock market tanks again, but we have to be down near the bottom, so it won't hurt too much now if it does. I think...
     
  8. mikem2000

    mikem2000 Lost Cause

    Why do you think we are near the bottom?. We heard that at 35, 30, 25 etc.

    These low oil prices just make it easier for PM's to continue to fall
     
  9. Santinidollar

    Santinidollar Supporter! Supporter

    Goldman Sachs made a $20 bottom oil call several months ago. Most people scoffed. Now, they are sweating. Still, that is 40 percent drop from where oil is now.
     
    Revi likes this.
  10. Revi

    Revi Mildly numismatic

    Oil is dropping because the world can't pay more than around $65 next year even if it gets more scarce. The price of oil can't be much more than it gives in energy value. It's worth around $40 now, and by 2020 it will be down below $10. Then it's game over for our industrial civilization. The only people who will be able to continue to pump are legacy fields. Here's a graph of what I'm talking about:

    http://www.thehillsgroup.org/depletion2_022.htm
     
  11. Santinidollar

    Santinidollar Supporter! Supporter

    Interesting thesis. Although oil is getting positioned to be a less-vital source of energy -- provided that alternatives become mass scale and gain an economic advantage -- I think the author is too early in terms of timing.
     
  12. mikem2000

    mikem2000 Lost Cause


    I believe this guy has it backwards. As oil drops in price, products cost less to produce and deliver. Soooo the widget costs less. Lets say you need 1 barrel of oil to produce and deliver 1000 widgets. Now the price of oil drops but because the widgets now cost less, the oil is generating less economic activity (based in dollars) per barrel. Now the author is suggesting the opposite. He is saying, that no matter what, we can only afford to pay x amount for the widget and not a penny more. Soooo, since we all need the widgets this will then determine the price of oil. It is like the cart leading the horse and it is just not how things work.

    It really is the cost of oil determining the price of the widget, and not the price of the widget determining the cost of oil.

    Mike
     
  13. Revi

    Revi Mildly numismatic

    I took me a while to wrap my head around what he is saying, but it seems to work. We are going to have a surplus of oil which causes the price to drop, which means less production, but since it's oil that is really driving the economy, people will pay less and less for it because it costs so much to get out of the ground. Oil has been an invisible resource holding the whole game up for so long that we have forgotten how things really work. Homeless people don't need much oil. As the industrial machine slows down it needs less and less oil to keep it going, and therefore the price actually goes down. Seems counterintuitive, but it is happening.
     
  14. V. Kurt Bellman

    V. Kurt Bellman Yes, I'm blunt! Get over your "feeeeelings".

    Yup, not surprising. Most counterintuitive economics is correct, almost by definition. It's when an economic argument makes obvious "common man common sense" that it nearly always has gone astray.

    Economics is one of those fields where "everything the common man knows is wrong."
     
  15. Santinidollar

    Santinidollar Supporter! Supporter

    For most of my life, the United States bemoaned its increasing dependence on foreign oil with rising prices and, finally, $4 gasoline. Now, we have more than adequate supplies due to our own production and $2 and less gasoline in many regions. I really don't know what my overall point is, but it is certainly ironic. Just an observation, I suppose.
     
  16. V. Kurt Bellman

    V. Kurt Bellman Yes, I'm blunt! Get over your "feeeeelings".

    Two new round numbers in metals have been crashed through today. Copper has crashed below $2 a pound, and Palladium below $500 an ounce. Silver is APPROACHING a new 5-year low. Not there YET.

    Crude oil is nearing a two-digit number starting with "2".
     
  17. Cascade

    Cascade CAC Variety Nerd

    The Saudi's are flooding the market in an attempt to shut our shale fracking ops down. They fear it like nothing else and are letting billions go out the door just to try and stop us. It is however helping to cripple isis somewhat though as they are now trying to get only a measly $10 per barrel for it to anyone who's buying. (Silver lining I guess)
     
  18. Brett_in_Sacto

    Brett_in_Sacto Well-Known Member

    This is OPEC's price fixing at its finest. And to be a part of the ethical world, you can only buy oil that is from them. Good, bad or indifferent. Unless you drill or brew your own.

    By the way, everyone knows that all oil is organic - right? I mean the oil we pump is the decomposed animal, plant and mineral matter - straight from the ground. Same thing as using vegetable or peanut oil. The complexity all comes in the distillation process - but it's all organic, and therefore renewable.

    Unless you still believe it's all from mechanical dinosaurs? :)

    [​IMG]
     
  19. Brett_in_Sacto

    Brett_in_Sacto Well-Known Member

    Be nice! If we were on Sprocket's, I wouldn't let you touch my monkey!


    [​IMG]
     
  20. V. Kurt Bellman

    V. Kurt Bellman Yes, I'm blunt! Get over your "feeeeelings".

    Noooo, it's all from decomposing "monetary dinosaurs", those people who believe a currency needs to be "backed" by something. :hilarious:
     
  21. V. Kurt Bellman

    V. Kurt Bellman Yes, I'm blunt! Get over your "feeeeelings".

    Is anyone else noticing that the initial move by metals markets lately after nearly ANY big economic news is to jump up, then sort out the fundamentals in the following few days?

    Example: the Chinese "non-Chinese New Year" stock market equity swoon initially sent people to metals and commodities. Then they went back and remembered Chinese demand is central to world commodities demand, and "Down the chart they come...".

    Not all economic shocks are bullish for metals, only imaginary ones like the inflation boogeyman.
     
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