Silver Hits $10.00

Silver broke through the $10.00 barrier. Soon it will affect the Silver Coin market big time. Hold on to those silver coins and buy those silver proof sets.

BWJR:computer:

 

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sudden jump. Anyone know why?

 

Maybe the issues wiht Iran, India, UAE adn everyoen else around the world is starting to slide off of oil and into precious metals. I havnt looked yet, but are the other metals jumping in a similar fashion?

 

It really isn't a sudden jump. Silver has been in an overall uptrend for years. A few of us here have mentioned this. The primary reason I became interested in coins again two years ago was the rise in silver. As for the reason why -- every year annual industrial usage exceeds annual mine production. The difference is filled out of worldwide inventories, and some analysts have noted that the inventory levels are getting pretty low. A few smart people including Warren Buffett, Bill Gates, and George Soros have large investments in silver. Does this mean silver will go straight up in price? No. But in a few years I think $10 will look pretty low and everyone will be disappointed that they didn't load up.

 

Why?

There is also a strike in Mexicos largest mine that started on Weds. Also, I have heard that silver jewelery is going to be a hot fashion trend this year. Both of these, in addition to the industrial usage, are the main reasons I have found as to explain the increases. Most notably, the strike causing this particular jump.

Ryan

 

Just remember that what goes up must come down. Silver not to long ago sky rocketed upward and then came crashing down. Any precious metals, jem stones, etc from the ground aways scare me as an investment. One large discovery of one of them and poof, there goes the investment. Just as diamonds are now being manufactured, rare coins are being counterfieted, rare metals may soon drop like a rock. It happened before.

 

Just Carl that is very true, but true of any investment. if someone invents a flying car tomorrow, Honda and BMW are going to be hurting just as bad as Ford and GM. You have to use imperfect information to make a best guess as to the way the market will go. Although, I must say I disagree with what you say about having to come down. I am still chuckling about those that were waiting for silver to drop below $7.50/oz back in august (figures may be rough but you get the point). I invested heavily, for a 21 year old college student that is, then and am quite happy with the current situation. Anyways, thanks for reading to my rambling post.

Ryan

 

Ithink silver is just now rising to the point that it should have been in the past and this view is shared by many people: some very wealthy as Cloud sweeper 99 pointed out.Dont expect $50 an oz as that was a one time manipulation of the market,but $15 to$20 per oz is possible in the coming years.If I were 20 years old again,I would gradually accumulate small amount over many years: by sytematically spending 5% of my discretionary income every month on silver.You wont even miss it!

 

This has been pointed out at least a thousand times, but silver prices in the late 80's adjusted for inflation would be 5-6 times what the current price is. So really, it isn't that crazy silver will steadily increase before the next major market fluctuation.

But yesterday it seems silver was only at $9.50's?

 

:goof: Hopefully silver won't go tooooo high.

 

I'd like to correct a couple of statements. Just Carl, the statement about what goes up must come down applies to gravity, not investments. I suppose there are still people waiting for Morgan dollars to return to the $1.25 price in 1962, or to buy a Ford for $700, three bedroom houses for $9000, the Dow to 300, and farmland for $5 per acre. Currency depreciation tends to be a one way street in the long run. Regarding the imminent "large discovery," it should be noted that most silver is produced as a byproduct of other metals, and the supply is relatively unaffected by silver prices. I believe there are only about 35 primary silver mines in the world. To put a new primary silver mine into production from scratch requires exploration, geological studies, permitting, environmental compliance, labor agreements, drilling, feasibility studies, lining up financing, building infrastructure to get power and equipment to the site, building the mine, buying the equipment, securing long term power supplies, building or contracting for smelting, and providing housing, schools, hospital care and other services to employees who may be working permanently at a remote location. Can it happen? Yes. Is it expensive? I've read that the ballpark estimate is that it can't be done anymore unless the investors have some assurance that the long term price of silver will stay in double-digits. Investing is about evaluating the probability of various outcomes. You be the judge.

09S-VBD, the inflation adjusted price of silver from the 1980s until now is not 5-6 times the current price if you use any sort of realistic median price and not the short term spike to $50. Any inflation calculator on the web will prove that. I like silver a lot, but there is no need to exaggerate. Silver is still a good investment at $10, but not as good as it was at $5-$8 where I accumulated most of mine.

 

http://www.kitco.com/charts/livesilver.html
The jump I was referring to was the sudden bid for 10+ today take a look at the chart.
As for the other stuff I am already on the record calling for a jump after 10 then high prices for a year or so, when new supply will quell the heat.

 

Lets not turn this into an investment seminar. Buy an informercial on late night TV for that.

Ruben

 

Some of us are investors as well as collectors, so why not?

This silver run started years ago and only recently is it building up some noticeable steam. This is a ramp to the next major bull run that should last several years. If you want to forego the opportunity, well that's up to you. $10/oz. silver is expensive compared to 6 mos. ago, but there's plenty of room for growth here. How far can this potentially go? $15 end of year, $50 by 2010, who knows? As an investor, what other vehicles would you choose in today's economic environment?

 

Because it is OFF TOPIC and it ticks people off to run into a thread and be pitched to. The overt commercialization of the forum is spitiually a violation of the goal of its rules.

This is marketing jaargon that has no place on this list. This is not a forum on silver investment and your investment advice is UNWELCOME. This is not a list to sell commodities, oil, or stocks. This is a list about COINS. If your not discussing COINS (silver or otherwise), take it somewhere else. Even if you were selling coins you would be relegated to the auctions section.

Which part of this was misunderstood and I'll rephrase it in more vulgar language that perhaps you can better understand. Every tangental discussion on the rising silver prices and its affects on coin value is not to be turned into you own personal investment seminar on bullion futures.

 

Marketing jargon? I'm not trying to sell you anything. I'm a private collector. It just so happens most of my silver purchases are in the form of coins, so it is very relevant.

 

Hopefully if someone wants to start a new thread about silver coins, not silver investing, there will be less rancor.