Falling Silver prices

Thanks for the input. I know ,know one really knows for SURE what the lowest price might go to,I just wanted to get some peoples thoughts on it. In the end I have to buy at what I feel is right for me. Like I said i havent been at it for as long as some people have here and Im ALWAYS learning something new, I have American Eagles and Maples and private ment stuff I try to keep a good mix. I wish I had of bought back when it was really cheap but PM's never really hit me as something to buy.Im buying for when I retire or a rainy day, so no fast turn around sale for me. Maybe there will be a next time that Silver will drop into the singel digits??

 

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Yes VERY good helpful stuff!! Thanks again to everyone

 

Be a steady buyer, and use averaging to try and maintain the lowest price over time.

 

I doubt very much that silver is ever going to drop into single digits ever again. With that said though, I hope I'm wrong!

 

Because of the manipulation of the silver and gold markets, you cannot predict precious medal prices. I buy silver with money I won't need in the short term so I don't have to dump it when the market is low. That is all I can say.

 

Interesting thing about markets, is they're driven by expectations. People wouldn't quit buying at $40, can't drag them in no matter what at $15. I'm in the expectations boat right now too. If things weren't the way they are, I'd be backing up the truck right now. However, I fully expect to see silver go below $10, and won't be buying anything until it's $10/oz delivered, and even at that, I will only "begin" buying again. If it goes to $7.50, I'm out 25% on my $10 silver.

I don't believe metal prices have anything to do with the metal anymore.

 

When exactly is it when the metals markets were NOT driven by paper contract traders? I've been watching especially silver since 1974 and it's ALWAYS been "all paper all the time". These guys who breathlessly post criticisms of paper traders amaze me. Where you been, Jack? The whole big run up to the top in 2011 was ALSO the work of paper shufflers, not physical buyers.

 

No, not at all. But be aware that by doing so, you (not you personally but the whole of those who agree with your method) are merely prolonging the inevitable - that silver is fully capable, especially if we keep a lid on major new terrorism events, of hanging out at $5-$6 for decades.

 

Note to self: do not hit the post button in a moving elevator.

 

No, it's not fully capable of that at all. Let me ask you a question, are you actively shorting PMs right now?

 

Thats even a little TOO bearish even for me. Is it capable of hitting $5-$6????, Of course, markets overshoot all the time, but hanging there for decades????? Very doubtful, that level is just too far under cost of production to stay there that long.

 

Ummmmm, yah. Nice crop job off the right side of that graph. What your graph correctly shows, if you allow it to by including all of it at the right edge, is that we have twice in the last 40 years temporarily lost our minds regarding precious metals. Eventually sanity returns.

 

Frankly, I don't think the cost of production matters. You don't need to produce what you don't need. There is so much silver "parked" in the form of coins, medals, bars and rounds currently that we're pretty close to the point where just the normal mortality rate of stackers will leak back enough silver supply to more than satisfy the entire world's need for Ag for the foreseeable future.

 

The chart is from 2012. What it shows is that your belief of what a "normal American economy" should be is a complete fabrication of your mind. If you really study the graph, you will see that silver has been valued ABOVE the CPI until the establishment of the FED. After that, it dramatically dipped below but remained relatively tandem to the CPI. 1980 and 2011 were deviations, but so was the whole 80s to 90s period about you which you keep proselytizing that should be normal. The fact is, there is no "normal" and all of your points are predicated on facts that only exist in your rhetoric. You are just as bad as the silver pumpers.

 

You are literally making all of this up.

 

Define "shorting". I am buying exclusively numismatic pieces. I stopped all generic silver buying about 2000, and sold it all in summer of 2011. I don't "short" anything technically, because I do not invest using credit, but only cash transactions. I saw the trend go parabolic in 2011 and that was the "run for the exits" signal.

 

Not at all! The only way anyone can say industrial silver demand is not COLLAPSING is by including coins, medals, bars, and rounds as industrial demand. It's not! It's inventory "parking".

 

The whole 80's and 90's period is normal, and coincidentally where we are slowly but steadily headed.

 

Normal compared to what? What makes those prices normal?

 

Semantics with no actual point. Demand can collapse, production can collapse, currency can collapse. It isn't evidence that your rhetoric is correct.