Silver getting crushed today

Never saw it hit $19 over the last year's price chart from InvestmentMine. Peaked in summer of last year. He was referencing the current market - a recent article.

 

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EXCEPT 7.5 SALES TAX!!

 

It was July through August of last year.

 

Right. Last summer. I was thinking a year back from today. Anyway . . . I'm sure every analyst has their own pet jump-off point, conveniently located just a hair above any recent peaks.

 

If you deal paper, the options on SIVR and GDX are getting attractive for those expecting a jump before the Dec. holidays, and if you expect it before Fall holidays also known as Thanksgiving, SIVR is very attractive.But it is a gamble. Know what you are doing. You can loose it entirely. Of course with physical, a loss would be monetarily greater for 100 oz.

 

I rather enjoy being a Lemming, as it has paid off for many years now.

 

Well i guess i was kind of a Lemming for a bit also, When silver was at $35 I bought a whitetail Deer coin for $37.00 figuring it would be worth $50.00 pretty quick. And I still have it too!

 

So you have not made any loss at all. It is still worth one ounces of silver.

 

Wha? Holy cow, I think I just crossed paths with a year old post!

 

Sue he has. Those dollars would have been worth two ounces of silver now, plus change.

 

That's absoutely correct, because silver is only worth the price that is put on it by the marketplace forces of supply and demand; it has no intrinsic or innate value as such.

 

Not at all true. Inflation and the price of PMs varies so much that it is hard to give specific numbers but the dollars would probably BUY the same amount as they would have originally. No one knows how much the silver will buy until there comes a need to exchange it for FRNs to abide by the law (ignore the potential barter value of PMs). The assumption has to be that as long as FRNs maintain their buying power no one has any reason to cash in their silver. But as soon as that is no longer the case then it is impossible to predict what the buying power of an ounce of silver will be. Hence my claim that he has not lost anything until he tries to use it (by exchange for FRNs or by barter.)

 

You are warping the perception here by claiming that silver only has value in FRNs. That is only true as long as FRNs are dominant. But what if they are not? No one should be converting FRNs to silver if they need the money for any other purpose and so that assumption has to be that silver is only bought as a hedge against the devaluation of FRNs.

I have said it many times here. PMs are NOT an investment. They are a hedge against the devaluation of the dollar.

 

I'm afraid I'm lost here. As far as I can tell, inflation-devalued dollars buy less every year, and silver at any given instant is worth whatever the going rate is.

 

I think that is what I just said.

 

But most things are worth what the going rate is. The going rate for a gallon of gas is what the gallon of gas is worth, and the lines are longer than the ones at the bullion shop wanting to buy silver so....... Now if silver almost always went up, in other words a mirror of "inflation-devalued dollar , you might have a point, but it doesn't . One could argue silver is more value unstable than the dollar at any specific point of time.

 

Roger that.

 

O.K., now I'm perplexed again.

 

Isn't a hedge against devaluation of the dollar exactly what an investment is?

 

No, not at all.