3rd straight annual loss for Au

Agreed, "real" numismatics has almost nothing to do with bullion. Too bad so many bullion hawkers and bullion fans insert themselves in numismatic events as if they ARE the market. Bullion is merely a sideshow. Too often recently that "tail" has been wagging the "dog". Numismatics worked just fine in the mid-90's when metals were way down.

 

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Gold/dow ratio has gold as slightly undervalued to historical norms compared to the Dow.

http://www.macrotrends.net/1378/dow-to-gold-ratio-100-year-historical-chart

 

It's hard for me to even comprehend how silver can be as undervalued as it is right now. All of the above ground silver mined throughout the history of mankind is worth about the equivalent of the market cap of Facebook. (hard to get exact numbers for this type of thing, but this is a rough estimate and probably correct within a 50% margin)

Then again I guess this should be no surprise since silver was below $5 as recently as 2003, so it's not anymore undervalued now then it was then. (although I'd say its in a very similar place now, given inflation and the ever increasing uses for it)

 

Never confuse, as you at least SEEM TO have done here, the NUMBER of uses versus the total true industrial demand taken as a whole. The heyday of traditional photographic imaging (70's-90's) saw FAAAAAR more industrial demand for silver than exists in total today, DESPITE the fact that the number of applications may be a bit higher now, e.g. antiseptic fibres in workout clothes, photovoltaics, temporary increases in electronics (soon to be substituted due to low life cycle needs)(Who cares if silver circuit tracks won't corrode if the non-replaceable lithium ion battery dies first?)

The only use keeping silver use from a true mini-collapse is coins, bars and metals, which isn't a "use" at all, but a "parking of inventory".

 

Wrong comparison. The Dow is a dynamic thing. Gold is gold is gold, and it never changes. The profit earning ability of major industrial companies changes all the time, mostly upward lately. Actually stocks are quite cheap now, looking from a price to earnings ratio standpoint. We've had MUCH higher P/E ratios before. Yes, the average Joe Sixpack American is suffering, but he's no longer the Dow company's target growth customer. Some Chinese dude is.

 

Good news for the Chinese dude-Amazon is down to 901/1 PE. He'll be able to see his investment returned through earning in his lifetime if he can mutate into sea turtle with 9 lives.

 

... or if Amazon can con more people into plopping down $99 a year for a Prime membership. That's their cash cow.

Besides, what's more fun than being one of those lazy obese humans at the end of the movie Wall-E?

 

Never watched Wall-E. What movies I did watch last year were so infested with PC vomit they'd nauseate the Rock of Gibraltar. I think I'll pass on movies this year.

 

Spoiler alert - although the movie was spoiled by the writers from the get-go.

Even James Bond - who is "licensed to kill" allowed the criminal mastermind to live on - and we'll see him come back and attempt to destroy the world again because of it.

Meanwhile, DJIA is in harsh correction and metals are showing some strength today.

Thankfully everyone thinks there's no inflation - so there isn't any.

 

Who's has time for that stuff? There's puddles to watch you know.

http://time.com/4169162/puddle-drummondpuddlewatch-periscope/

 

In Wall-E, this is what humans have become, due to over-reliance on technology (and stacking bullion?):


You know, like WalMart shoppers today.

 

Aliens will have some good eating eh?

 

Sure, if they like their human flesh "well marbled".

 

Metals follow a different market.

 

Looks like they could use some marbling.

 

"Why don't you turn off that spacecraft and go outside and play? You need some color!"

 

"After we take over you'll be the first one to visit our re-education center."

 

Maybe, but why did Gold spike to a lower ratio in 1980 than it had since at least 1915? Weren't companies more efficient and making larger profits in 1980 than they were in the 65+ years prior?

 

Umm, no. Were you an adult in 1980? I was. The economy stank and profits were in the tank. Remember "malaise"?

 

This is my thinking regarding silver. I just buy small quanities (~$30-50 worth) each month with my 'fun money'. It's more a hobby than an investment.

I figure with silver's current price, if it drops 50% that is not as much of a 'hit' to purchasing power as a 50% drop in gold. I can live with losing ~$7 in value with my 'for fun' junk silver than ~$500 if I had some bullion gold coins.