Is silver over valued??

A simple Observation Preffered

Well Stated!!

I wholly agree that while we try to generate wealth by printing notes, hardly worth the paper value, many others throughout the world are producing tangible wealth, and the items which we find needy or valuable.

While we rest on laurels, pretentiously professing to be of superior intellect, we have the highest homicidal rate of "civilized" societies. Our country is generally held hostage by a judicial system which appears to penalize the victims, and seemingly reward criminals.

We are victimized by a banking system that rewards "white collar" criminals for their actions by providing additional "stimulus" to perpetuate their actions, and provide additional gratuity for their incompetence.

We pay educators relatively well to perform as part time employees who produce a relatively poor outcome, at a cost far in excess of other "civilized" societies.

We pay a large segment of our taxes to a small segment of our society to produce (or not) the edibles which are often delivered from without.

We heavily tax penalize, oversee and mandate to industries that produce functional products, not just services.

We allow "investment advisors" who have generally shown their incompetence by past performance, to freely "invest" our wealth in commodities that can hardly be understood, much less be of appreciable value.

A simple observation of the aforestated hopefully will stimulate many to act in their own best interest, as realized when one invests in precious metals, and other commodities which have intrinsic value.

Do I believe that Gold/Silver yet have increased value? I can only say that my personal investment performance has exceeded those to which I've provided an investment stipend with promises of additional rewards for outperforming me. A large portion of my current portfolio is invested in PM Numismatic material.

I hope that those having a positive attitude towards Precious Metals are correct in their "simple observations". Go Silver Go :thumb:

 

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@ imrich......haha....I did not mean to open up a can of worms with You. Now THAT was a rant after my own heart. Ironic...I was just talking to someone tonight about professions that have gotten the "free pass" so to speak, one of them being tenured professors at major universities.

Whenever an individual asks me about when the correction will come regarding Our (the U.S.) economy, I always tell them the same responce.....when We can no longer sustain the idiocy....which might even be sooner than I think. Either way I`ll take any PM over any stock option, 401k, IRA etc, and in the words of imrich....."GO SILVER GO!"

 

When I posted the following - I wasn't clear on my question.


"If the following is the case

"Subsequently, the CFTC intervened and implemented a lot of rules preventing silver "speculators" from buying oversized positions, but put no such restriction on selling."

How are the massive short sells covered?"


How are they able to originate these massive short positions without people on the other side of the transaction buying oversized positions?

 

The massive short positions didn't exist back when the Hunts were operating. Back then, they held massive long positions, which were considered "manipulation." Now, we have massive short positions, but somehow they are NOT considered manipulation. The quote below is from http://www.gold-eagle.com/editorials_04/laborde012704.html which recounts the whole episode.

"Finally on January 7th of 1980 the COMEX changed their rules to only allow 10 million/oz of contracts per trader and that all contracts over that amount must be liquidated before February 18th. . The CFTC promptly backed up the ruling. On January 17th silver hit $50/oz, Bunker had continued to buy. At that point in time the Hunt's silver position was worth $4.5 billion dollars bringing their profits in silver to $3.5 billion dollars. On January 21st the COMEX announced that it was suspending trading in silver. They would only accept liquidation orders. Silver dropped $10/oz and stayed around $39/oz until the end of January. "

 

Well massive shorts may not have been in place, I don't know, but shorting of silver has always been an option. A fed agency stepping into a massively overbought, (cornered) market is not unheard of either. Governments have frequently stepped in to prevent a classic market cornering. It is destabilizing to the entire economy. I do not like the market now, but I would support the decision made in 1980 to step in, even arguing it should have happened sooner.

 

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Overvalued compared to what ?

Pep