$500 SILVER & Hyperinflation

http://www.youtube.com/watch?v=YP-a6aJgOYU

Interesting podcast...

Buy more silver

 

Log in or Sign up to hide this ad.

Your last line made me laugh. It reminded me of a desperate commercial on tv that will do anything in its means to for you to buy their product.

On a serious note No just No. That whole channel is just a joke. Over 500 videos of "hyperinflation." One would think he could make the video at a better time not at the moment when silver is going down/staying stagnent

 

But wait, if you act now, I will send you two ASE's for the very low introductory price of $69.99. That's right, you get both coins, the useless piece of paper that says these are genuine silver, and the really cool plastic wrapper. These very special coins are sure to go up in value as the demand for silver is reaching all time highs, this is your only chance of protection from financial ruin as the Dollar is sure to collapse. If you double your order, I will send you my awesome newsletter explaining all the secrets the Evil Banksters don't want you to know so they can keep all the Silver for themselves...........

 

People don't seem to understand that most of Silver is consumed for industrial purpose if dollar collapses what do you think is going to happen to the economy? A slowing economy would shrink Silver's demand and to make matters worse you have massive sell off by industries to reduce their inventories and build up cash reserves.

 

Maybe in a depression silver will not be consumed for industrial purposes. Gov't could consumed it for backing junk fiat currency purposes? Fiat currency would also tank. They would need something to prop it up. They did before Confiscated Gold (April 5, 1933).

 

Is $500 silver possible? To me that question is similar to someone asking in the mid-to-late '90s: are internet shares worth hundreds of dollars possible?

We live in a time of extraordinary money-printing that allows the markets to at least temporarily defy the laws of math and common sense. With trillions of dollars printed each year by the central banks, bubbles are bound to occur. It is folly to believe the real estate market will be the last bubble in our lifetime.

 

quick history: in july 2008 silver was over $20/oz then in november 2008 it dropped to under $10/oz...if the economy tanks it takes silver with it and gold too..not saying I trust the dollar with all the printing and digitizing debt...but don't keep all your eggs in one basket...silver,gold,art,wine,dollars...ect...

 

The Federal budget shows the Debt hitting $16.3 trillion in2012, $17.5 trillion in 2013 and $25.9 trillion in 2022. I do see it going way higher that $30.

 

There is no positive correlation between debt and silver, Our debt can be 100 trillion and Silver can be $10 dollars. Assumption is that central banks will dump dollar and move to other PMs but what if they simply switch to another currency Yuan or a global currency.

 

Yes, if the economy is flat, industrial demand for silver will decline. But investor demand for silver may more than make up for it.

 

you do realize if the economy is "flat" or even declines...that means less money going to buy anything...let alone silver...the real unemployment is over 22,368,000
unsure how many of them can afford to even buy 1 ounce of silver let alone more...

 

I understand that. Economics is a social science as its also just human behavior. Destroy the USD and humans will flock to PMs....

 

I agree that we have 23% unemployment. I think you underestimate how much money the poor may have. I deal with homeless folks and many have cell phones. American poor is not the Worlds poor. American poor have large TV's etc. I grew up poor and buying is a priority.

 

Why would that happen? Why would there be more demand, for a commodity that is becoming LESS useful in Industry.

 

They wouldn't flock to another currency first?

 

Is that an assumption or fact? How do you know they wouldn't flock to the Yuan. Maybe the Yuan would also be destroyed, and folks would flock Rupee because India has become the Worlds largest economy. Maybe the Rupee was also crushed and folks only want hard goods they can barter with. Maybe the USD only drops 50 % and other country's buy up Greenbacks because they are much more stable than their currency. GETTING MY POINT. There are just way too many variables and possibilities to make a statement like that as if it were a fact. We just don't know.

 

Of course there is a positive correlation between the money supply and the price of silver, hence the rise of the silver price in the last decade. Silver and other commodities rose due to the QE of the Fed. This is hardly debated anymore. If the national debt reaches $100 trillion, that implies the money supply has grown substantially, which means the dollar would be greatly depreciated, causing commodity prices to rise, since commodities cannot be inflated so easily.

 

I have said it before and I'll say it again: silver will rise substantially, maybe even to $500 to $1000 per ounce, within the next decade or two. Of course this will bug some numismatists, since it implies many of their prized coins will be melted for profits. Yes, some may be thrilled that their coins will be more prized in such a case, but I suspect there is a visceral distaste for the melting that is bound to happen!

 

Really ? How do you explain how Silver had dropped a whooping 40 % over the last 20 months when QE has been in high gear and the money supply was increased at record levels?

 

Because you can come up with any chart to prove your biases by selecting a specific time period. No one can deny that over the last decade, gold and silver have been among the best performing assets. They each have gone up every year for the last 12 years, mainly because of currency debasement. In a volatile market like silver, there can easily be 40% drops over 20-month periods. It was the same, or worse, with internet stocks.