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is silver a bargain at $40 ?
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<p>[QUOTE="InfleXion, post: 1248308, member: 29012"]I think where my thoughts diverge is that I don't measure intrinsic value in currency. I measure it in precious metals, because they are a true store of value. The fluctuations in buying power make using currency a poor measuring stick of value. I would agree with the projections used for cost of production, but since they are measured in dollars I expect those projections to rise. This is how it can be a bargain even though it may seem overvalued, and maybe it is overvalued right now, but the question in my mind is what's more likely: Will currency reflect true value before the price of metals reflects their true cost of production? I would guess that one cannot happen without the other, and until then both markets will be manipulated. If neither will ever come to pass then I suppose it isn't a bargain, but if they do the next question becomes which is more out of wack which is obvious.[/QUOTE]</p><p><br /></p>
[QUOTE="InfleXion, post: 1248308, member: 29012"]I think where my thoughts diverge is that I don't measure intrinsic value in currency. I measure it in precious metals, because they are a true store of value. The fluctuations in buying power make using currency a poor measuring stick of value. I would agree with the projections used for cost of production, but since they are measured in dollars I expect those projections to rise. This is how it can be a bargain even though it may seem overvalued, and maybe it is overvalued right now, but the question in my mind is what's more likely: Will currency reflect true value before the price of metals reflects their true cost of production? I would guess that one cannot happen without the other, and until then both markets will be manipulated. If neither will ever come to pass then I suppose it isn't a bargain, but if they do the next question becomes which is more out of wack which is obvious.[/QUOTE]
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is silver a bargain at $40 ?
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