Next step silver - over $20.00

I am a fan of Faber and Rogers.

I also like to keep up with Izzy Freidman, and Ted Butler.

I am not sure about cornering the market in the sense that you may have implied, however, some do believe that the current market is being manipulated by concentrated shorts from a big bank(s) (Reference Ted Butler's many writings). The terms cornered and manipulated feel like the same sofa to me.

 

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I think silver is having a hard time moving for a few reasons. One is that a lot of people got into silver around $18 before the markets crashed in 2008. The smart ones didn't bail immediately, but waited until silver reaches $18 again, and then they sell, because they want to get out even. They feel that silver has been a poor investment and probably still feel that way. The way gold reacted to the crash vs silver might make these people invest in gold and say "forget you silver."

The ratio of the gold to silver price has more to do with what it costs to put the final product out on the market on current demands. What a AGE cost to produce mine to finished product to an ASE. Gold is already becoming pretty scare, so costs to produce go up. Silver is mined as a secondary to other metals such as copper, zinc, lead, etc. Mostly the silver produced from these mining operations comes as a bonus and isn't figured into the costs.

Lastly, if the ratio does correct, who is to say that silver has to increase? Has anyone considered that gold might go down and silver stay stagnant? This would also close up the ratio.

Silver also has industrial applications. When the economy is doing well, and the need for silver is increased, the price goes up. When the economy is bad and nobody is buying devices that require silver the price goes down. If you noticed, at the end of 2009 the ratio was improving. Now, the ratio has gotten worse, this has implication on how the economy is doing.

The worst thing you can hear about is how historically gold is 16 to 20 times the price of silver. Like, how far back in history do we have to go? There was a commercial that went, "electricity today is cheaper than 20 years ago....a little birdie told me so." Let's face it, well never hear that jingle again.

 

I wonder if this thread would exist if silver had never hit $50 thirty years ago?

About 10 years ago, I was really into penny stocks and many of the comments here remind me of the penny stock forums back then (ragingbull.com).

No offence to anyone. It just occured to me as I was reading the last 20-30 posts.

 

:thumb:

No shortage of Silver, plenty more can also be mined:hammer:

 

to Pocket Change: Here's a link, no surprise , which probably answers your question, from post #15 of this very thread, by the OP herself:

And I take no offense to your post in the least bit. In fact I follow these 'Next Step' threads and contribute ticker updates not to cheer lead the price rise but to wait to see just how far off the prediction mark the OP may have been in their desire to see PMs hold at a given level and whether or not the OP will sell or hold or continue making further lingering ambiguous prediction once a given level is met. :hammer:

 

People overweight the $50 silver and $850 gold prices of late 79, early 80 in their thinking about today's prices. What folks tend to forget is that the whole precious metals bubble only lasted a few weeks, and was largely confined to the futures market, not the physical market. It ran up and ended so quickly that I would guess that very few people actually bought or sold any gold or silver coins near the high prices. You didn't have access to silver and gold then like you do now. There were no internet dealers or TV ads, and the AGE and ASEs didn't exist. Krugerands were the only real bullion coin, and "investment" silver largely consisded of bags of junk silver coins available at coin shops.

 

Silver @ $16.17/oz. -- High so far today $16.25/oz.

Gold @ $1,118.60/oz.

 

Is there a trend here?? Seems like things are going a little south to me
Just my opinion....LOL

 

Silver @ $16.28/oz. -- High so far today $16.29/oz.

Gold @ $1,121/oz.

 

I've heard it said often that people never had the ability to cash in on the high physical prices of the late 70s/early 80s, but in my experience it wasn't true. There was time to do it, and some ordinary people did sell. I know I did. And there were articles in the newspaper about little old ladies melting down there silver teapots to sell into that price spike, so I wasn't the only one. That said, I know some who decided not to sell into the spike, because they were unsure about whether they would be able to buy back more cheaply later.

I was a young kid learning jewelry making, so I was probably more aware of silver and gold prices than others, but among people I knew, ordinary people were aware of all these issues, and many ordinary people were buying. There wasn't any Internet, but there were newsletters, people were terrified of inflation, oil prices, and concerned about the US dollar. You could buy Krugerands, you could also buy Mexican pesos, and many of the Austrian Coronas on the market today are floating around from that era. People began buying right after it became legal, and quit as it became a general mania and prices went over $200, then $300, etc. There was time to get in, and there was time to get out as well. We did have life before the Internet!

Even better, you could walk into a bank in NYC and buy your gold coins over the counter for a small premium. As for silver, it was mostly junk silver, but they started turning out bars as well. These you had to buy from a coin dealer. Premiums were lower than they were today.

 

People were buying and selling for sure, but probably not as many as you think. You were in a unique position to run into more of them.

 

I don't think so. I was in a position to be more aware of it as a kid, but it wasn't simply people I personally had contact with. It was articles in newspapers, magazines, out there in the general culture. People were selling into the Hunt brothers price spike, and it was everywhere if you were inclined to notice it.
On a similar note, jewelers tell me that people have been selling like mad for the last year or so also. Nobody is buying. Business is super bad.

 

Fine with me... Let it drop, let it drop...

 

now is the silver turn. yestesday high at $17.42. right now $17.35. gold silver ratio improve to 65+ to 1.

 

Currently:

Silver @ $17.27/oz.
Gold @ $1,136.20/oz.

 

Currently:

Silver @ $17.17/oz.
Gold @ $1,134.70/oz.

 

Update 09:45 CST

Gold 1128
Silver 17.11

 

Wrong way... I want it to go down.... Then can buy more... I don't want to look at selling for atleast 20 years...

 

Currently:

Silver @ $17.19/oz.
Gold @ $1,129.60/oz.

 

Just to be more clear, I agree that there was a lot of selling. But most if it was at the $10, $15, and $20 level, not at the spike level. The $50 price lasted for a very brief moment in time, and most dealers were paying substantially less than that because the smelters had all the inventory they could handle. The $50 price was really a futures market price, and the general public didn't realize anything close to that amount. I sometimes wonder if the lack of another "big melt" in silver at today's prices is due to the fact that most of the scrap silver that people had around the house was melted in 1979 and never replaced.