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<p>[QUOTE="Mr. Coin Lover, post: 1008258, member: 16060"]If I understand what you are saying then to you silver is overpriced or close to being overpriced riding on a bubble that is soon to burst. I'm certainly not knowledgeable enough to say you're wrong, but there are some factors I think one may consider regarding this.</p><p><br /></p><p>The stock market crash of '29 was based purely on speculation with stocks way over bought. If I can remember what I read in '29 before the crash RCA had a P/E ratio of 70 to 73 and Montgomery Ward was around 60 or so. Again as far as I know this was all based on pure specualtion. From what I read people were borrowing as much as they could to put in stocks. This debt that could not be repaid influenced the deepness and length of the Great Depression.</p><p><br /></p><p>I'm sure we all remember the ".Com" bubble a few years ago, again this was based on pure speculation. People who had no idea what were doing were jumping in and I know a few people who lost everything they had becoming "professional" daytraders.</p><p><br /></p><p>Then we come to the real estate debacual we are now in . IMO this occurred for two primary reasons. First, speculation by many that did not have the financial resources to weather any storms in the market. Second, backed by many in Congress, giving mortgages to people that never should have gotten the loan in the first place. I will say for those buyers it was the idea of home ownership that drove them to purchase, not greed or speculation.</p><p><br /></p><p>After saying all this I finally get to precious metals. I have to say to me they really have some concrete factors other than just speculation to support these prices. Off the top of my head these would include:</p><p><br /></p><p>1. The economy is in bad shape. People are bombarded daily with bad news or good news they don't believe such as the recession is over.</p><p><br /></p><p>2. Too many people have burned too many times in the stock market coupled with many thinking it is all rigged for the rich.</p><p><br /></p><p>3. People don't have faith in the banking system as they did previously. Our banking system appears to me as operating as a speculative operation.</p><p><br /></p><p>4. The lack of faith in our government, unhappiness with our elected representatives, and our national debt.</p><p><br /></p><p>5. A feeling of no place better or safer than precious metals to put there money. Of course there are speculators out there, but I think, and may be wrong, people are trying to protect what they have.</p><p><br /></p><p>I'm sure it has occurred, but I haven't read of people doing a lot of borrowing to buy precious metals. I think the precious metals will certainly have ups and downs, volitility </p><p>will occur more likely with silver than gold. But, silver also appears to be more affordable to many rather than gold. There are sound reasons to me why people like me (Joe Snuffy) own precious metals.[/QUOTE]</p><p><br /></p>
[QUOTE="Mr. Coin Lover, post: 1008258, member: 16060"]If I understand what you are saying then to you silver is overpriced or close to being overpriced riding on a bubble that is soon to burst. I'm certainly not knowledgeable enough to say you're wrong, but there are some factors I think one may consider regarding this. The stock market crash of '29 was based purely on speculation with stocks way over bought. If I can remember what I read in '29 before the crash RCA had a P/E ratio of 70 to 73 and Montgomery Ward was around 60 or so. Again as far as I know this was all based on pure specualtion. From what I read people were borrowing as much as they could to put in stocks. This debt that could not be repaid influenced the deepness and length of the Great Depression. I'm sure we all remember the ".Com" bubble a few years ago, again this was based on pure speculation. People who had no idea what were doing were jumping in and I know a few people who lost everything they had becoming "professional" daytraders. Then we come to the real estate debacual we are now in . IMO this occurred for two primary reasons. First, speculation by many that did not have the financial resources to weather any storms in the market. Second, backed by many in Congress, giving mortgages to people that never should have gotten the loan in the first place. I will say for those buyers it was the idea of home ownership that drove them to purchase, not greed or speculation. After saying all this I finally get to precious metals. I have to say to me they really have some concrete factors other than just speculation to support these prices. Off the top of my head these would include: 1. The economy is in bad shape. People are bombarded daily with bad news or good news they don't believe such as the recession is over. 2. Too many people have burned too many times in the stock market coupled with many thinking it is all rigged for the rich. 3. People don't have faith in the banking system as they did previously. Our banking system appears to me as operating as a speculative operation. 4. The lack of faith in our government, unhappiness with our elected representatives, and our national debt. 5. A feeling of no place better or safer than precious metals to put there money. Of course there are speculators out there, but I think, and may be wrong, people are trying to protect what they have. I'm sure it has occurred, but I haven't read of people doing a lot of borrowing to buy precious metals. I think the precious metals will certainly have ups and downs, volitility will occur more likely with silver than gold. But, silver also appears to be more affordable to many rather than gold. There are sound reasons to me why people like me (Joe Snuffy) own precious metals.[/QUOTE]
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