Next step silver - over $20.00

Discussion in 'Bullion Investing' started by elaine 1970, Sep 7, 2009.

  1. elaine 1970

    elaine 1970 material girl

    Gold high $1,062.40. An all time record high again.
     
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  3. elaine 1970

    elaine 1970 material girl

    Silver tie the recent high at $17.95 an ounce.
     
  4. elaine 1970

    elaine 1970 material girl

    Type of metal --dec. 31,2008 -- today's high -- % gain

    gold ------------ $869.75 ------ $1,062.40 ------ 22.2%

    silver ---------- $10.79 ----------- $17.95 ------ 66.4%

    platinum ------- $898.00 -------$1,357.00 ----- 51.1%

    palladium ----- $183.00 ---------$326.00 ------ 78.1%
     
  5. elaine 1970

    elaine 1970 material girl

    silver still very strong. bid 17.81 ask 17.85.
     
  6. elaine 1970

    elaine 1970 material girl

    Silver hit recent high - $17.99 an ounce. Up 66.7% since dec.31,2008,

    gold break all time record high - $1,066.50 an ounce. Up 22.6%

    platinum $1,370.00. Up 52.6%

    palladium $339.00. Up 85.3%. The best one.
     
  7. elaine 1970

    elaine 1970 material girl

    silver break $18.00 to $18.07 high.
    gold all time record high - $1,069.50
     
  8. elaine 1970

    elaine 1970 material girl

    silver $18.13. $20.00 is near. but i hope it will do better than $20.00. let's said $30.00.

    gold record high $1,071.00 an ounce.
     
  9. elaine 1970

    elaine 1970 material girl

    oct.23, 2009. gold high $1,068.50. silver high $17.97.
     
  10. Otter

    Otter Likes shiny objects

    The dilemma -- Bulls and Pigs

    In my view, there are significant macro economic trends that devalue the $ and therefore make gold/silver attractive long term. There is also the old market adage, when everyone is doing the same thing, do the opposite.

    My understanding that gold/silver bullion sales continue to be strong due largely to continuing fear -- fear of a double-dip, fear of continued weak dollar, fear of fear.

    So when does a Gold Bull become a Gold Pig and get slaughtered?

    While spot continues to rise for gold/silver, it also appears (someone please confirm/dispute) that the premiums to spot have escalated. I have seen anywhere from $40 - $90 premium on AGEs....It would seem a return to <$1K at some point is going to (for some) kill demand and hence the premium resulting in a double whammy for those holding it.

    I still have a bunch of silver, but they are all were acquired in the sub $10/spot range.

    So is $20/silver and or $1200/gold the line???
     
  11. Morgan1878

    Morgan1878 For A Few Dollars More..

    Update-B of A analyst in Bloomberg article 10/29/09 calls silver "the golden child" and predicts $20 price sometime in 2010.

    Silver has been outperforming gold for some time now. Ratio vis a vis to gold remains wide. One reason is storage costs. It occupies more space.
     
  12. JoeSmith

    JoeSmith Member

    Wow, I just read this entire thread (except for the big kitco article). I have gold and silver, a substantial portion of my wealth. How high can it go? It can, and will, go to infinity. Which is to say, the dollar is doomed to become worthless. Not necessarily zero, but arbitrairly close to zero, to coin a math phrase. Why does anyone think this is good? You're like a person in a car speeding toward a building. You say wow, the building sure is getting big! But its not, its still the same building, it just looks bigger because you're rushing toward it. You'll eventually crash into it, and that won't make you happy.

    Then we have YAKPOO and AlexN2coins2004 arguing about have you made any money if you haven't "locked in the dollar value", as if "dollar value" is anyway to measure anything. If I told you the first time I drove to Dallas I spent $100 on gas, you'd have no idea how much gas I used, unless you knew WHEN I drove to Dallas the first time. On the other hand, if I told you the first time I drove to Dallas, I spent the value of 25 "junk" morgan silver dollars, you'd know I used about 100 gallons of gas, because a morgan silver dollar has been worth about the same as 4 gallons of gas, (or 10 cups of coffee, or 25 postage stamps, etc etc) for the past 50 years.

    So when silver gets to $100, don't get to excited. It will still get you 4 gallons of gas, or 10 cups of coffee, or 25 postage stamps.
     
  13. elaine 1970

    elaine 1970 material girl

    it is better than you have nothing.
     
  14. AlexN2coins2004

    AlexN2coins2004 ASEsInMYClassifiedAD


    the less you pay for silver the more you can buy last i knew...I guess math is going out the window like the dollar...
     
  15. Otter

    Otter Likes shiny objects

    I won't get excited, but I will at least be able to buy 4 gallons of gas..something my 401k would not be able to equivalently fund...which is your point.

    The good news is that a Morgan is easier to store than 4 gallons of gas and retains value what 10 cups of coffee (old coffee, yuck!)....

    So is it your view that the dollar is rapidly heading towards 3rd world currency status. If so, in 5-years, 10- longer?
     
  16. JoeSmith

    JoeSmith Member

    Ok, here's why you're wrong. When I was working in high school (1964), I could "buy" a mercury dime for 10 cents. I made about $20 for working about 10 hours, so I could work an hour and buy 20 mercury dimes. Five years ago, I made about $20 per hour after taxes, but mercury dimes were about .80, so I could work an hour and buy 25 mercury dimes. So, even though I paid less for silver when I was in high school, I could buy more 5 years ago. I remember vividly the first time I saw my savings account top $1,000. At that time, a new chevy impala was $2,000.

    I believe most people, including people here, are "dollar centric". I think most people visualize dollars as paper dollars, because they believe they could withdraw their bank account and receive paper dollars. I don't think this is useful.

    The numbers on your bank statement don't represent anything. You say sure they do, I could write a check for some silver. Yes you could, but until you do, you haven't "locked in" the value of your "money". As silver climbs, your money is eroding, so why are you all cheering? You have some silver, and (probably) some money. Your money is eroding, but you're happy because NOT ALL of it is eroding. Your silver is still the same silver. When silver goes down, you still have as much silver, but now your dollars are worth more because they can buy more.

    No matter what happens to the price of silver, it will always buy 10 cups of coffee, 4 gallons of gas, or 25 postage stamps.
     
  17. JoeSmith

    JoeSmith Member

    I think we'll see the end of the dollar in 5 years, I see us going on a world currency. The reason is political, so I'll try to dance around talking politics. The current power structure favors a global approach. Its the perfect way to really stick it to the rich. The world bank, or some entity, will tell us how much debt we can run, and it won't be like its been lately. The price of everything will go up. This will be done to protect foreigners who are holding so much of our debt.

    I like to conduct thought experiments. Suppose our government were to decide to give 1 million dollars to everyone. It would certainly stimulate the economy, everyone would have lots of money to spend. But, everyone would retire, so you wouldn't be able to buy a cup of coffee in a restaurant, the waitresses would have all quit.

    I live in Michigan, the state that has led the nation in unemployment for the last 8 years. We have 15% unemployment, but you don't see people wearing signs saying "I need a job". No one wants to work. For years we've been borrowing, as a nation and as individuals. This can't go on forever. We have to consume less, and produce more. We have to produce things of value, which means people have to work. How do you get people to work? That's really simple, stop paying them not to. But, I don't see this happening.
     
  18. yakpoo

    yakpoo Member

    The day universal health care passes is the day I stop working. :thumb:
     
  19. Morgan1878

    Morgan1878 For A Few Dollars More..

    Not so fast..the last time a reserve currency got replaced (the British Pound) the process took a hundred years.

    Although the dollar could eventually be replaced, foreign countries with large holdings (China, Saudi Arabia, etc) don't want the value of their dollars to suddenly plummet. Overtime, the dollar will decline, but the desired path is an orderly decline, not a free fall.

    Currently, there's not anything out there to replace the dollar. No other country so far has a currency with the liquidity and just as important the confidence of other countries with respect to its political stability as the U.S.
    now enjoys.
     
  20. Otter

    Otter Likes shiny objects

    I tend to agree with Morgan1878. IF we allow the $US to become 'valueless' through our deficit spending, we will have problems in 20-30 years...largely because there isn't anything (yet) to replace it. Some might argue the Euro, but China and to a lesser extent India aren't going to let that happen. China isn't ready to take that position (yet) and of course the European's aren't going to rollover. This instability will allow the status quo to continue, albeit on a slide until 'the time is right.'
     
  21. JoeSmith

    JoeSmith Member

    The world is calling for the end of dollar hegemony. Political stability? The government is taking over more and more of the economy, bankrupcy courts are re-writing or ignoring laws about bond holders vs stock holders, and it really isn't looking like we're going to start producing much in the foreseeable future.

    Its like you loaned your brother-in-law some money. Then, instead of paying you back, he tells you he'll lose his job unless you loan him some more so he can fix his car. He owes you money already, you don't want him to lose his job, so you loan him some more. But you see that he keeps spending more than he makes, and he'll never be able to pay you back, he'll just need to keep borrowing more. After awhile you'll just cut him lose, and he will lose his job and you'll never get your money, or you might loan him the money to fix his car if he'll agree to let you manage his money for him, and force him to live within his means. The next time we have a financial crisis and try to sell a few hundred billion more of our t-bills to the Chinese, they might not be so willing.

    This has been a long time coming. Its just that we keep moving faster in that direction. There is nothing to replace the dollar, but one can be created in a few days or hours.
     
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