Silver Horders spreading their "veiwpoint"

751.4 million ounces in 2010, 761.6 million ounces in 2011. Greatly expanding?:foot-mouth:

 

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Not always, their have been periods of deflation without any ill effect on the economy.

 

do you have a link to that article? I tried googling it but without success....

 

You are correct, but EACH year this was new silver being "printed". Everyone who wishes to be on a gold standard act like no new mining happens. Last year industry use FELL to 486.5 million ounces. To my simple math that means there were 275.1 million ounces that GREW our above ground supplies.

I know everyone here loves silver, but the truth is most humans don't care, and save for its value do not care if they own silver at all. So, at what point is this expanding above ground silver supply going to start overwhelming demand? DesertGem already noted how gold sales were down for coins, but gold has central bank support right now. Central banks don't buy silver.

 

But the electronic industry does, and so does the autoindistry and more.

 

CopperJacket is RIGHT ON, and many of you will regret the day you turned up your nose at gold and silver.

If a basket of currencies replaces the U.S. Dollar in settling crude oil contracts, in due time you will see a $10 gallon of milk. This country is fiscally (and morally) bankrupt, and out-of-ammo bondholders will be the first wave to get mowed down.

 

But I just said industrial demand last year was DOWN. Industry is using LESS silver than they did before, leaving more for "investment", which is another way of saying ever growing inventories.

Doug444, I am not turning my nose up to silver and gold, I am simply reacting to the notion ONLY silver and gold is worthy of being invested in. That notion seems to be prevalent here, and I try to be a competing voice. Some of the stocks I have that would do better if the economy turns around mine copper, which by definition also produce gold and silver. Also, I have said many times I have a personal stash of silver to fall back on.

I am ONLY saying its not an end all, be all, and if someone is putting all of their eggs in that basket they may have a nasty shock some day. They might not, maybe they will win, but for the few points I have pointed out there is a CHANCE it may not be a winner for them, and if that's their only bet then they are out of the game.

 

Because of the recession.

 

Oh, I agree one should diversify, with an eye toward liquidity. Also, invest in what you understand. I would be the last rube in town to buy farmland, or diamonds, or baseball cards. The point is equally that down the line, when things stabilize, there will be some HUGE bargains for the man with cash on hand, or a highly-liquid medium of exchange. Beloved coin collections of many years' making will be flushed out to buy bread, milk, and shoes for the kids.

The net worth of households in constant-year dollars is already down by 1/3, compared to a decade ago, due to the real estate crunch. Where do we go from here?

 

Thanks Doug but the point of my post was that until gold and silver are accepted as a form of exchange that I can purchase a tank of gas or loaf of bread with, they're still just commodities with no real buying power.
Most folks that push the discussions on gold and silver are either heavily invested in them or have a vested interest in getting you (us) as consumer's to purchase bullion.

It's kinda like encouraging folks to hoard pre-1982 cents due to the value of the copper within them. A pointless and fruitless endeavor IMO.

 

Agreed, as to pre-1982 cents. As someone who just TODAY found out about Taco Bell napkins, CT posts are challenging my belief systems right and left.

 

Somehow, I just don't think so........http://en.wikipedia.org/wiki/Coins_of_Turkey

It appears that Turkish money is made up of copper nickel and zinc.

I suspect that Iranian mone is the same.

Of course, I could always run down to my local bank and trade in my $20 gold pieces for $20 but what the point in that?

As near as I can tell, no country in the world uses gold in day to day commercial transactions along the same lines as plunking 4 quarters down for a slurpy.

 

To add to my post, I heard that Utah(?) was introducing legislation which would allow folks to pay their state "taxes" using gold bullion but thats a far cry from using gold as a regular currency/form of payment.

 

I'd be happy taking that 10.2 million ounce difference just to say that it wasn't "greatly expanding".

Actually, I think that the big jump occured between 2009 and 2010. Comparably speaking, I think that if you were to compar sales from 1987 to 2010 that the differences would be mind boggling.

 

I think the Turkey and Iran business may have involved this:

"...IRAN accounted for the bulk of Turkish Gold Bullion exports in the first five months of the year, according to data published this week by the Turkish Statistical Institute.

Turkey exporter $4.02 billion worth of gold between January and May, with $3.08 billion worth going to Iran – around eight times more than in the same period last year. Much of this gold has been bought by wealthy Iranians who live in Turkey, Turkish newspaper Zaman reports."

and this:

"...India is the first buyer of Iranian oil to agree to pay for its purchases in gold instead of the US dollar, debkafile's intelligence and Iranian sources report exclusively. Those sources expect China to follow suit."

Payment in gold gets around the embargo against Iran.

 

Which is a far cry from using gold as a regular currency.