Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
investing help
>
Reply to Thread
Message:
<p>[QUOTE="gboulton, post: 1264925, member: 27043"]Not at all. Admittedly, that's one way it might happen. (And is pretty darn unlikely *heh*)</p><p><br /></p><p>But the cost of production could easily change. The production costs of a great many industrial resources have changed...often very quickly and by large amounts...over the years. </p><p><br /></p><p>Andrew Carnegie "perfected" the Bessemer process for mass production of steel, and radically changed not only its price, but the uses to which it could be put.</p><p><br /></p><p>If you prefer to deal with a "natural resource" like silver is, then consider the changes in the cost and uses of petroleum products from laborers in hot fields to offshore rigs to, more modernly, shelf drilling.</p><p><br /></p><p>Or perhaps new methods of reclaiming existing silver will be developed that are more efficient, less expensive, or both.</p><p><br /></p><p>I'm certainly not suggesting such things WILL happen...merely that a "sudden" radical change in the cost or method of producing, reclaiming, or distributing silver is not out of the question, and could easily impact the price.</p><p><br /></p><p> </p><p><br /></p><p><br /></p><p>Why? The money supply expanded and contracted by multiples of itself from the 1790's until the 1990's, several times. The money supply was radically different before and after the Depression...or before, during, and after World War II.</p><p><br /></p><p>Those events did not make even a dent in the average silver price.</p><p><br /></p><p>==============</p><p><br /></p><p>Again..I'm not arguing silver won't go up. I'm not arguing it won't go down. It may, or may not, ever hit $10 again, or it may be $100 by the end of the year.</p><p><br /></p><p>I'm simply suggesting that a vast majority of arguments advanced..particularly in "biased" groups such as a silver forum or coin forum...either for OR against silver as an investment tend to be over simplified. Since this thread was started by the OP asking for advice on PM investing, it's appropriate to discuss the counter-arguments, I think.[/QUOTE]</p><p><br /></p>
[QUOTE="gboulton, post: 1264925, member: 27043"]Not at all. Admittedly, that's one way it might happen. (And is pretty darn unlikely *heh*) But the cost of production could easily change. The production costs of a great many industrial resources have changed...often very quickly and by large amounts...over the years. Andrew Carnegie "perfected" the Bessemer process for mass production of steel, and radically changed not only its price, but the uses to which it could be put. If you prefer to deal with a "natural resource" like silver is, then consider the changes in the cost and uses of petroleum products from laborers in hot fields to offshore rigs to, more modernly, shelf drilling. Or perhaps new methods of reclaiming existing silver will be developed that are more efficient, less expensive, or both. I'm certainly not suggesting such things WILL happen...merely that a "sudden" radical change in the cost or method of producing, reclaiming, or distributing silver is not out of the question, and could easily impact the price. Why? The money supply expanded and contracted by multiples of itself from the 1790's until the 1990's, several times. The money supply was radically different before and after the Depression...or before, during, and after World War II. Those events did not make even a dent in the average silver price. ============== Again..I'm not arguing silver won't go up. I'm not arguing it won't go down. It may, or may not, ever hit $10 again, or it may be $100 by the end of the year. I'm simply suggesting that a vast majority of arguments advanced..particularly in "biased" groups such as a silver forum or coin forum...either for OR against silver as an investment tend to be over simplified. Since this thread was started by the OP asking for advice on PM investing, it's appropriate to discuss the counter-arguments, I think.[/QUOTE]
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
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
investing help
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...