Next Level: GOLD $1,350.00

I have been saying all year that Silver is the play this year, as it has much more room for growth and many people were positioned in gold last year already, with more smaller investors still taking hold of silver. demand for silver is greater. I don't go by the ratio pog : pos but it is encouraging. I think it's too soon to sell now if you have only been in a year. At least let silver get to $25/oz. It's easily got that room left to rise-- yeah it might not happen until later on in 2011 or something, no one can say when, but now is too soon.

 

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If I understand the financial news reports, it appears that the Fed has been the biggest purchaser of Treasuries recently, and may have to continue to do so. That does not bode well for the US currency/ economy and many are looking for someplace safer to park their assets while they still can. These are not normal times and the markets reflect whats happening, there may not be a dip of any significance because demand is much greater than normal supply.

Just my 2 cents or is that a silver dollar now?

 

It held at 64-65 to 1 for all summer I think. Isn't 61:1 about where it should be ?

 

I've mentioned this before, I really think it's a small handful of people buying PM's. The average american simply doesn't have money or mental willpower to break out of the mold to invest in PM's and take that chance. I have no facts behind this, just spewing how I feel about my fellow countrymen.

My two closest friends are professionals, and they have the ability to buy PM's, I've preached to them a couple times about it, they know I have PM's, but they won't buy. They never told me they wouldn't buy, it was just one of those topics that we never continued to have. And not being an economist, I would feel horrible if they bought PM's and the prices dropped. But I would have felt worse if I didn't at least try to get them to buy....so hey, I did my part.

Sorry for the rant. But back to your average american. I'm not really sure "who" is making all this silver go up. I know I haven't bought any. Is grandma around the corner buying some? Is that nice family down the street buying some? I don't know, if I had to guess, I'd say no.

Is it possible there are very wealthy wall street guys and possibly celebs that are buying enough silver to make it go up like this? Does it only take a few wealthy to push these prices high like this? I don't know....

Are celebs/athletes even buying into PM's?

Just thoughts in my head that I'm throwing out there..... Here's another thought, anyone here who owns PM's, any amount, do you ever look at people in the streets, that you walk by at work and wonder if they own any PM's? Or am I too obsessed? LOL.....

I know at work on my screen I have the gold/silver prices widget. And no one ever says anything about it if they happen to glance at it...why?

 

You are certainly too obsessed! LOL

Where do you get the Gold / Silver price widget? I tired of having to hit refresh!

Thank

 

There are some here that you can download, thanks to fools_gold for this find: http://www.learcapital.com/exactprice

 

Yes, I too think of all these things and scenarios, but I don't really let it get me too worried about market prices. I don't think so much about the effect of wealthy individuals, institutional investors or industry demand as much as I feel concern for the misperceptions about PMs and/or the risks that the small guy faces if they get into any one investment too deep. It's seemingly more tragic to watch those on the edge invest their last funds to acquire PMs just because the media is driving the madness and confusing people or TV bullion dealers are exploiting peoples fears and anxieties over economic factors they may not understand completely. It's the media in combination with some market forces and factors that I think is lacking from your thoughts above, as it's media that's majorly at play (prey) here too.

Just my 2 silver dollars

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I can understand How You might think that not too many people are buying silver now.....especially when based upon the people that We deal with on a daily basis. Not too many of my friends are investing in anything besides things that they happen to collect, antiques and things of the like.
However...when I go to the 4 coin shops in my area, they all have one thing in common....they are buying and selling the PMs at a frenzied pace. As soon as someone brings in some random ASEs, AGEs or other bullion, it does not take them long to sell them "over the counter" real fast. The world is a far bigger place than Our circle of friends and acquaintances. : )

I can personally attest to making the mistake of not getting some silver when I had the chance, and going back the next week to find out that somebody had already bought it. Just last week one of the local dealers had sold 6 100oz silver bars to someone too.

Silver and gold are hot in my neck of the woods, and from what the dealers are telling me....there are more newer investors/collectors of silver bullion and others who are diversifying by getting in on silver as well.

I believe silver is going up because of the investment and industrial demand working together.

This is a really thorough web site that I have posted before regarding the industrial applications and other facts regarding mining, refining, and all things silver. Check it out....it should answer some questions about the industrial demand for silver. http://www.silverinstitute.org/silver_uses.php

 

"..those who have ears to hear, let them hear.." They'll hear you when they're ready, I guess. BUT, in my opinion, for me anyway, why tell anyone, preach to anyone as you put it, about pm's? Owning metals as an investment is something I personally prefer to keep secret, but for my attorney (in case I die) and my cpa. Owning metals, or more specifically encouraging others to purchase metals based on my own experience(s) feels a little like bragging (just my wacky way of thinking), and honestly, can serve me no good. I "think" that the perception of owning metals is one of wealth, even though we all know that may not be true. On this board, owning gold and/or silver is common, and in fact why we are all here. On the street, that is not true. It's not common, for as you said in your post, who is buying..?
In answer to your query, I don't look at anyone and wonder if they own any metals, I don't want to know, and I don't want them to know whether or not I do, AND I wouldn't answer if asked (I'd sidestep But I do enjoy this board! Your zeal, fretboard, is catching! Lucy p.s. If they do see the widget on your computer, they either don't know what it's telling you, and if they do, they are not interested because it doesn't mean anything to them. It would only mean something to them if they had an active interest in pm.

 

That is what most posters on this forum have in common. We have gold and silver. Outside of CoinTalk and other gold and silver forums , I do not tell anybody that I have PM's. Only my parents know that I collect silver art bars. I do not tell anybody else that I collect silver art bars because I am not comfortable with telling anyone that despite that fact that I sometimes post pics of a few of my silver art bars on this forum and post comments about gold and silver. If someone did ask me if I bought gold and/or silver, then I would just say "What is that?".

I heard this somewhere but I heard that only 2% of the U.S. population has PM's. I still think that a lot of people have no idea what, for example, a gold eagle looks like. As long as you have a majority of the U.S. population that either 1.) Does not know about gold and silver or 2.) Cannot afford to buy gold or silver, then both gold and silver still have a long way to go before there is any blow-off period in those metals. I could be wrong on this of course but this is just my take on this.

People that have any gold jewelry or other gold and that also possibly follow the gold price might look at the all-time high in the spot gold price and say to themselves "Hmmmmmmm............Looks like a good time to sell my scrap gold jewelry.". Other people that might say about gold and silver if they saw the prices might say "Hmmmm........I am interested in gold and silver but it is too high so I will wait for it to go down.". If gold and silver still continue to climb higher, then the average joe six pack might finally break down and get gold (if they can afford it) because it is going up but at what price? $2000? $2500? More than that for gold? If not gold, then they will might silver (if they can afford it) but at what price? $30? $40? $50? More than that? By the time that gold and silver are in the news and everybody on TV and on the radio is telling you to buy gold, then that is , in my opinion, approaching a blow-off period in the metals prices. Think of about what happened during the late '90's with the blow-off period in tech stocks.

I have seen and heard, on a daily basis, radio and TV commercials about gold and silver BUT 99% of those commercials that I have seen on TV and heard on the radio are telling people to SELL their scrap gold and silver. I have seen very few commercials about BUYING gold and silver. Then again, I do not have full cable TV access, so I could be wrong on this too.

 

All good responses my friends. Yes the "new" widget that I use is the one from Lear Capital that Krispy posted above. I used to use a couple of Yahoo and Windows7 gadgets, those were good too, but I liked the style and more frequent updates from the Lear capital one.

I completely missed the media hype in my original post. If you do watch cable TV, mainly Foxnews, you will see gold ads to buy. And now I am seeing silver as well, which as I've said before concerned me a little bit. As for CNN, MSNBC, I'm not sure if they are showing gold/silver ads. I really don't watch TV that much either. When I do watch ABC, NBC and CBS I don't see gold ads at all.

So if there is a top off, what then? Does that mean PM prices will fall? I can't see why they would? Would they just hover a certain price for the foreseeable future?


As for telling people, I completely keep that to myself. I do however felt it was necessary to tell my close friends to "look" into PM's and that I do have some. None of them know how much I have and the one time they asked, I just said, "A couple coins"....

I believe if I were to continue to speak about PM's and even mention how many I have (which really isn't that much), as LucyRay mentioned, it would sound like I was bragging. So I am aware of that. At this point, the only way I will speak about PM's is if someone brings it up and wants a little more info on it. But we are all adults, and I do not need to bring it up everytime we have family/friends gathering, nor do I need to bring up the fact prices have edged up everytime we've gathered.

For anyone that owns gold jewelry and is cheering on for the price to increase should really get the "real" thing and get some AGE's. They are going to take 1/3 off the price of gold when you bring in your scrap gold and you will be disappointed.


As someone else mentioned, by the time joe and jane sixpack are finally ready to purchase gold or silver. I honestly think gold will be out of reach. Ok, maybe they will afford 1oz of gold, but when you look at the alternative (silver), its price will be very attractive. And this is when silver prices might really start to shoot up....

 

Imho, silver has a long way to go (if gold/silver targeted ratio has any merit..)(and I believe it does..) Just my 2 silver dollars worth

 

CURRENTLY: In the US market for Thursday 9/23/2010...

GOLD: $1,292.60
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Silver: $21.05

Platinum: $1636
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Palladium: $544​

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One thing to throw a wrench into, but since I'm not a silver history buff. I don't know what silver was used for back in the days other than spoons and forks, and even further back during the days of the egyptians. Today, it seems to have much more industrial use. So I'm not sure how the ratio really plays into all this....

I try not to get caught up with the ratio too much, they are both 2 different metals with different uses.....

But that is my 2 silver dollars.... =)

 

I think others have pointed out the folly of the ratio between the metals in part because you could apply it to any commodity gold to wheat, silver to oil... then what does it mean?

 

I only know that from a survival standpoint, everyone should have basic tools. Snares, ammo, matches and some PM's, preferably in US coins whose value is widely known and established. Even Gold coins should be stored in varying denominations. IMHO

Thanks for the widget, K.

 

Krispy, and FoolsGold, would you please 'consider' another viewpoint regarding gold/silver ratios? I attach a link that explains why I lean towards ratio: http://the-moneychanger.com/articles_files/mmm_files/silver_files/silver_will_outperform.php It might be dry reading for you, but maybe, there is a fact or two in the article that you might consider adding to your own store of knowledge.

Krispy, as you say, you have pointed of the 'folly' of the ratio between the metals in part because you could apply it any commodity gold to wheat, silver to oil, and on...(and sure, you could,) but really, now would you? Realistically speaking, would you? What would one have to do with the other? I am not being facetious, honestly, but tell me, I have not personally EVER been educated to compare the prices or activity of, say, gold and wheat, that one might run in correlation with the other. Honestly, I didn't know -- that seems to me to be comparing apples to oranges (as my husband used to say) and while it 'sounds' good, one has nothing to do with the other. But, watching your posts, I look to be educated on why I could do this, compare apples to oranges. Educate me, I'm up for it

Please consider reading the link. Gee it's raining cats and dogs here today, and I'm going on out to work in the rain. Great day to all! Lucy

 

I will most definitley check out the link Lucy. Depending on how long it is depends on if I can get it read during the day at work or if I have to wait until I get home where I can focus more....

 

Silver is first mentioned in the Bible in the book of Genesis, 13:2, and first mentioned as a form of currency in verse 20:16. Genesis is dated at about 1400-1450 BC. Silver was also used in jewelry and art back then too. Gold and silver have always had value and fascinated mankind since the dawn of man. : )

 

Lucy:

I feel that it is almost lethally erroneous to follow the gold to silver ratio camp as only supply and demand will determine the price of either metal. As I said, any ratio can be devised between consumable commodities: gold to apples, silver to oranges... I also don't see the point in why one should look for either silver or gold to outperform the other, they both have enormous potential for continued growth and I would not (personally) choose one over the other, but rather hold both for unique reasons and unique potential (until something else should be a better investment and PMs liquidated), but above all, both will remain in demand for the foreseeable future or until something else could be agreed upon to replace them.

Why does everyone only point to the gold to silver ratio? I think because it's a device for selling one or the other PM and overlooking the supply and demand factors that truly set their price. The link you provided is an extensive and exhausting sales pitch to me. I've heard the message before, seen the charts and prefer not to follow the PM ratio angle. Commodities are commodities: silver, gold, apples, oranges, grains, oil, nat. gas, et al. They can all be developed into charts against one another by analysts (or bloggers, journalists...) to suit their message, which I don't really buy into, a sales pitch that's not transparent enough to include the simple factors of supply and demand.

Elaine, on occasion, bears some reasoning in her posts by sharing a comparison of gold to the djia. Others agree with what that illustrates and look for the PoG to continue rising and to out perform equities as the PoG closes in on a one-to-one ratio to the dow (dow dropping to meet PoG), that is, they look to see how many ounces of gold it would take you to buy one share of the Dow. There are charts and plenty of analysis written about this and why it is important, here's one link from Goldseek (you can skip to the bottom for a quick rundown on the analysis if you don't have time to read the charts and other comments).

I hope that sheds more light on why I personally don't follow commodity to commodity ratios and I hope this offers further insight or at least a direction to another device for measuring the potential of PMs and the anticipation of them greatly continuing to perform until a balance is reached in the markets.

Also, please note that I am just as much a student of all of this as are many others looking for answers and indicators of what to do, even after years of reading about, watching metals, the markets, trying to comprehend charts and reports. I stand to be corrected if I am wrong and to learn from others' points of views here too. :smile