silver: hold or sell?

Pshycological reasons for currency fluctuations are temporary. The Dollar will go up when the FED makes less of them. The money supply is the driving factor in the Dollar's value. The FED does not openly publish M3 anymore. Foreign goverments want out of the USD. Why? Because loose monitary policy allows the printing presses to roll. You think banks are up to tricky accounting, well so is the FED.

A good energy policy is not going to fix Social Security, and Medicare. A good energy policy is not going to fix the massive debt obligations of the Federal Government.

I believe that inflation is EVIL. Inflation will be fixed when the power to create new money is taken away from Washington. The only way for that to happen is for money to be backed by something real. Until our money is something different than a broken promise written on a piece of paper there will be no justice. THE USA IS IN DEBT, and a good energy policy cannot fix that problem.... ever.

 

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The Federal deficit ballooned by 262 Billion Dollars in the last year, now it is over $406 Billion!. Then add on to that the right now worst case scenario for the Fannie Mae and Freddie Mac bailout, approximately $200 Billion. And you get the picture. The Fed Reserve is going to be creating money like nobodies business to pay for all this. Sure the immediate forecast on TV and all is somewhat rosey after Wall Street reacted yesterday, but wait until this is absorbed into reality.

Banking in this country is going to have to be seriously examined, it is fraudulent on the levels of the S&L crises of the 1980's and the banking crises in Japan at the same time. Japan is still recovering from their banking mess.

 

The comments I keep reading about is that there is more silver being used in todays computers and communications than is being mined from the ground. People are hoarding it. There is just no logical reason for the drop in silver prices like it is. Someone is manipulating the market. Buy silver now and hold on. Read silverseek.com and goldseek.com. There's always interesting reading there.

 

I'm buying rolls of silver every month and have been for the last 3 years.

 

So where does the little guy with $50-100.00 a week go to invest. Do you purchase coins at 10-12x face or would you look to one ounce rounds etc. and if you live out in the boonies of Nor Cal can you purchase online? Advice Please.

 

Here's the latest. Bad news for Gold and Silver owners:



Great news for Gold and Silver buyers.:high5:

 

Not so bad news for owners ..just a great buying opportunity. Come spring when the September buyer becomes a March owner, the return on the investment will be well worth it.

I'm just waiting for gold to hit $750, then I'm all in with the cash from my CD.

 

People who sell on fear, make money for those who buy on other's fear. Not my theory, but Warren Buffet's. Oil is only down 12.5%, the dollar is down, DJIA is down, and the war in Iraq continues to drain our country's treasury.
It would seem all indicators point to a rebound in precious metal prices. I personally believe we may not have seen the bottom, but we will see an upswing. I'm continuing to buy and cost average. If you think the market will tank, by all means sell. There is nothing more foolish than someone who buys a stock, watches it drop and knows it will never rebound and yet does not sell it. Get your money out, what you can, and put it back to work in something you believe will increase.
I believe all indicators point to a rebound and am neither holding or selling, but buying. But I've been wrong before, I don't want anyone to follow my advice, I'm simply voicing my opinion.
Vegas Vic

 

The main supplier of precious metals are none other than the mining industries, not the bloody stock market. When oil prices go up, this will have an impact on the mining costs, which is then passed all the way down to consumers. People have an unrealistic idea that oil prices should keep going up. Yea sure, it's scarce but if it becomes too expensive, it's just not affordable. "Oh you can't drive? Too bad. Can't afford to eat? Too bad." Word.

 

http://www.apmex.com/Product/16485/10_Face_Value_Roll_of_90_Silver_Coins.aspx

 

Well here is my advice. Take it for what it cost you which is nothing.
When I first started I bought real bullion coins in the form of American Silver Eagles. Made by the US mint they are known and accepted widely.
To balance things out a bit I then started buying a few one tenth ounce Gold Eagles. It was a good way to get in and get comfortable with this market.
I took it slowly and just did one or two small buys per month.
Then a co-worker had a fantastic deal on some Canadian Silver Maple Leafs.
Again, it's a government minted coin-not a round or a bar. But I did manage to get several APMEX one ounce silver bars from this same guy for $8 each. He bought them from Apmex and paid the shipping a few years prior.
When it came time to sell or trade those bars were the first to go. Several sold at that time for $14 each. Then next to go were the Silver maple leafs.
I traded them and some bars for an absolutely stunning Mercury Dime collection.
So what I still have and will still hold onto is the American bullion coins.
I'm not too keen on rounds. A month ago I was offered 10 Prospector rounds for $17 each. I passed. [good thing] So I would say start slowly and get real US bullion in coin form. But watch out for milky white spots on the silver eagles.

 

Digital photography has taken some demand for silver away.

 

I still say wait for that $4.00 mark to sell

 

going kookoo for silver NEED A LOAN NOW!!!

Im buying every month It's a great time to buy.

My local coins shop sold me a roll of kennedy's for a c-note about a week ago.

I mostly buy Silver eagles at $15-$17 sometime in the past for $20 but i rather get my oz of sae's for $20 than have to pay $30-$50 LATER MUCH LATER.

Silver is going to explode it has to it's the only commodity that is cheap and hard to get. so if it's so cheap but hard to get (try buying a 10oz jm bar there's a three week wait) it has to come up logiclly.

I know the fake silver runs the real silver because so much more fake silver on etf's than what's bought on demand. Once this bubble pops the silver will also come up.

My only problem is that I dont have enough money to spare on real silver.

A good idea would be to make your own buying power by getting lots of peoples monies together and buy certain bullion coins once a month in big bulks at dealer prices.

just my 2 Cents

 

I wonder how this scripture in the Bible will factor in?

Ezekiel 7:19 "‘Into the streets they will throw their very silver, and an abhorrent thing their own gold will become. Neither their silver nor their gold will be able to deliver them in the day of the Lords fury . . . . . . . ."

 

I doubt it will save you from getting this post edited.

 

Thanks Coins! I must admit that I assumed a minimum order and ridiculous shipping. But shipping is $9.95 roll which comes out to $100 (10 x face) and then shipping goes up slowly - only $12.95 for three rolls.

Cool. Thanks for that!

 

Yes mining companies extract gold and silver from the ground. But, they are also publicly owned companies with stocks that trade. Approximate $80 billion dollars of silver is mined throughtout the world. That was at about a $15 oz price. Or slightly more of than 500 million ounces a year or 500,000 pounds per year. Which equates to 250 tons of silver per year. Is this a lot in a world community? No. Will that they go to almost any expense to get it? Yes. If you are interested in who owns mining companies, go to their website and request investor information including the prospectus, which will show you the major stock holders are, they will be mainly be mutual funds whose managers are under tremendous pressure to improve year over year. So, the mutual funds that own the mining companies, that mine the silver and gold in essence control the output from the mines and know what the cost will be prior to the ore being extracted. Now we have the big shots on Wall Street running the silver and gold. We also have information on Wall Street at what the production costs will be and then we have a couple martinis for lunch and one manger says something and the other manager says something..........get the picture?

 

Thank goodness someone that knows what I'm talking about, thank you vegasvic. I own you one.

Mutual funds indeed plays one of biggest role in how much minerals to mined and extracted. The key point in my opinion is more on the likelihood of prices versus what grade to mill essentially dictates the overall production level. This is under an assumption that there are enough blasted rocks to work with in the first place. Most mines usually have a stockpile of high grade and low grade ore, the lower grades are usually stockpiled for times when metal prices are economical to extract, otherwise would have been a waste product. Some mines as far as I know are extracting as low as 0.4g Au/tonne although I'm not too sure about silver. That said, that actually would REDUCE the level of production. Why sell the high quality grade when you can sell the waste product and make a profit out of it?

Mining costs are sometimes not well declared or difficult to go as planned as the biggest factors are usually fuel cost, labour cost, maintenance cost, parts costs, unexpected geological constraints, etc. By the time you get an quarter annual report, you would wonder what's going on. I don't believe one can get an accurate picture of how violate mining costs are these days unless one has all data. The last I heard was about 200-300usd on average when gold prices was at 400-450usd prior to 2003.

The biggest drama in metal pricing history is from the 1990s when prices just plummeted and stagnated, one of the biggest cause maybe the huge gold reserve sell-off by the Bank of England as well as other Reserve Banks. During this period of time, prices were low and many mining companies were either forced to cut costs, fire staffs, kill off exploration or just shut down completely. It was this period of time when an estimate of more than half of geologists were fired and a fair number of staffs struggled to live.

The first hint of high metal prices started in 2003 when China bought up most of the mining companies excess reserves where previously more than one month's worth of resources were stocked went down to less than a week's worth. Ramping up the production level is possible but due to little level of investment done on exploration, this seemed to have an image to investors of something like "oh crap, that's all the resources that we have, we have to stock up!!!" It is inevitable that in general, most metal prices had to go up to compensate for the low level of investment. One example is the palladium price back in 2000 when it shot over 1000USD briefly.

In my opinion from what I see, it seems that people are unaware that if metal prices are kept on going for too long, major mining companies would have then found sweet deposits that can be economically mined, have the infrastructure developed and from there, cost production will drop down unless something drastic happens such as oil shock price or sudden change in government regulations. A good read maybe at http://www.infomine.com

 

Practically all of the silver from film development was/is recycled anyway, so this really has a negligible impact on the silver industry compared to the growth of consumer electronics around the world.