Message:

<p>[QUOTE=&quot;qsilver007, post: 1679402, member: 34667&quot;]I have been a trader for my wholecareer, but have in some way shape or form collected coins my wholelife. Having some Asian roots, Gold and Silver coins were commongifts at Lunar new year (Chinese New Year).</p><p><br /></p><p>When i begantrading professionally in 1998, the world was in mega growth mode dueto the internet, interest rates were fairly close to the historicalnorms between 500 basis points and 800 basis points.</p><p><br /></p><p>Yetduring the whole decade of the 1990&#039;s Silver never really got muchbelow 4.00 or above 6.00.</p><p><br /></p><p>Mainstream media will want you tobelieve that Gold and Silver only rise when there is inflation, butthat really could not be further from the case.</p><p><br /></p><p>I could onlygather data that goes back to 1792, when the US passed the coinageact, and they set Silver at 1.29 per oz and Gold at 19.39 hencecreating the bi metallic standard and a ratio of 15:1 in favour ofGold.</p><p><br /></p><p>Gold has long backed money, and yes there werecirculated Gold coins, but for the most part it was silver and copperthat was used as a medium of exchange.</p><p><br /></p><p>So Silver was priced at1.29 an oz from 1792 up until 1971 when we officially went off theGold standard, but coin collectors knew something had to be up in1964 as 90% Silver coins were eliminated.</p><p><br /></p><p>I have long heardSilver and Gold were relics, and that they are in abubble............... time will tell, personally I liked buyingSilver between 5.00 and 10.00 in the 1990&#039;s and early part of thismillennium</p><p><br /></p><p>But with the backdrop of Global interest ratesbeing ZIRP (close to zero ), German 2 year bonds are actuallyyielding negative 2 basis points right now !!!!!!!!!!!!!!! It isreally hard to fathom that the metals that backed money for thousandof years are in a bubble.</p><p><br /></p><p>Silver stayed at 1.29 an oz from1792 up until around 1862, then spiked due to the civil war, as didGold, making all time high in 1864 at 47.00 and oz and about 3.00 anoz for Silver, this obviously was due to lack of faith in a currencywhether it was the US dollar or confederate dollar.</p><p><br /></p><p>Silvermaintained a premium to it&#039;s 1.29 peg from the civil war until1877................hmmmmmmmmmm............ the Morgan was introducedin 1878...............coincidence ?</p><p><br /></p><p>Silver then entered a bearmarket until the end of WWII in 1944 when it seemed to find a bottomat 45 cents................ Right around the time of the goldconfiscation, in 1932 Silver made a low of 25 cents peroz..............this was most likely due to the fact, that peoplewere in panic as they had to turn in there gold, so they had to dumpSilver at super cheap prices in order to get gold</p><p><br /></p><p>From 1944 toabout 1960, Silver was still trading under the government peg and wasunable to get above the 1.00 an oz barrier</p><p><br /></p><p>Then finally in1961, Silver gets above 1.00 and by 1963, it has made it all the wayback to it&#039;s original price of 1.29 an oz</p><p><br /></p><p>1963-1966 Silverstays at 1.29.............this in spite of the coinage act, thatturned once silver coins into fiat currency at the end of1964............... SO for two whole years, there was no silver incoins, yet it was still 1.29............. I was not alive then, butmy grandfather used to tell me in 1964 how he took all hissavings,and asked for quarters and dimes..................it washarder to get the 90% Kennedy, due to everyone hoarding thatcoin</p><p><br /></p><p>1967 was another milestone.........Silver breaks 2.00 tothe upside !!!!!!!!!!!!! first time in 97 years since the civil warpanic !!!!!!</p><p><br /></p><p>Silver then precedes to go into a 4 year bearmarket heading back to 1.40 in 1971, then we go off bretton woods andsilver reclaims 2.00</p><p><br /></p><p>the 1970&#039;s you could say were the decadeof silver as it ran from 1.50 and oz up to 50.00 in JAN of1980</p><p><br /></p><p>During the 1990&#039;s up until 2004 Silver stunk, it wasstuck between 4.00 and 6.00</p><p><br /></p><p>Even as the millennium came andwent Silver did not do a whole lot</p><p><br /></p><p>It really was not until2004 when Silver broke 6.00 that it started to gather attention</p><p><br /></p><p>Ithink we can all agree that if you had save Silver coins from the1790&#039;s and early 1800&#039;s they did quite well, but what about the junksilver ????</p><p><br /></p><p>For a commodity to be stuck at one priceessentially from 1792 to 1971, just does not make sense</p><p><br /></p><p>We allknow the dollar was not the reserve currency of the world until afterWWII</p><p><br /></p><p>We all know that interest rates were much much higher andthe cost of goods and services rose drastically in those 200years</p><p><br /></p><p>So in summary...........I have always felt that themedia has tried to explain Silver and gold by moves in the dollar orinflation</p><p><br /></p><p>Sure there are periods of time where that tradeworks, but in the long run, it just does not make sense</p><p><br /></p><p>Ithink one would have done a lot better accumulating land in thebeginning days of this country than silver or gold, unless you havethat rare 1o million dollar coin</p><p><br /></p><p>Last note :</p><p>1904 last yearof the Morgan Silver Dollar</p><p>Did you know in 1904 one US dollar had25 grams of Silver in it ?</p><p>Did you know in 1904 one Mexican pesohad 25 grams of silver in it ?</p><p>Did you Know in 1904 one Japaneseyen had 25 grams of silver in it ?</p><p>So they were essentially equalright ?</p><p><br /></p><p>Now fast forward 109 year in 2013</p><p><br /></p><p>Silver is 28dollars in the USA</p><p>Silver is 346 pesos in Mexico</p><p>Silver is 2600yen in Japan</p><p><br /></p><p>If the Dollar is bad what does that makeeverything else ????</p><p><br /></p><p>Best</p><p>Q </p><p>twitter @quanholdingsllc[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in