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<p>[QUOTE="InfleXion, post: 1418181, member: 29012"]They can just as easily profit from you by buying your silver for 3-5 dollars less than they would sell it to someone else for. There is no shortage of buyers in this market. However, price does not have to go up, but it should go up because it is artificially suppressed. I know I will get pushback on this assertion but the simple fact that there is roughly half of 1 year's worth of mining supply available on the open market as opposed to a century ago when there was 40-50 times that amount of silver means that supply and demand are not working. Due to the successful nature of the suppresion it may very well require the end of the current order for the price to reach fair value. </p><p><br /></p><p>As to the topic, I am a buyer at any price as long as there are negative real interest rates, as in interest rates minus inflation is less than zero. This is the key indicator for whether precious metals will rise or fall since negative real interest rates are bad for dollar purchasing power. </p><p><br /></p><p>In the event that interest rates skyrocket and thus real interest rates turn positive then we would be looking at a deflationary scenario in which case the national debt would not be able to be paid off without significant cuts to government cheese, warmongering, and pork-barrell politics, or worse implementation of austerity measures like we see in Greece today. In such a scenaro precious metals may fall in price, but their desirability would be maintained as a tangible resource providing protection against default on the debt since the only way to avoid default in a deflationary scenario without the tool of money printing (which is inflationary) is to instead cut government spending approximately in half otherwise the debt is unpayable. </p><p><br /></p><p>So I would need to see the combination of positive real interest rates, government spending being cut in half, and the economy being able to sustain itself without free money in order to turn bearish on metals.[/QUOTE]</p><p><br /></p>
[QUOTE="InfleXion, post: 1418181, member: 29012"]They can just as easily profit from you by buying your silver for 3-5 dollars less than they would sell it to someone else for. There is no shortage of buyers in this market. However, price does not have to go up, but it should go up because it is artificially suppressed. I know I will get pushback on this assertion but the simple fact that there is roughly half of 1 year's worth of mining supply available on the open market as opposed to a century ago when there was 40-50 times that amount of silver means that supply and demand are not working. Due to the successful nature of the suppresion it may very well require the end of the current order for the price to reach fair value. As to the topic, I am a buyer at any price as long as there are negative real interest rates, as in interest rates minus inflation is less than zero. This is the key indicator for whether precious metals will rise or fall since negative real interest rates are bad for dollar purchasing power. In the event that interest rates skyrocket and thus real interest rates turn positive then we would be looking at a deflationary scenario in which case the national debt would not be able to be paid off without significant cuts to government cheese, warmongering, and pork-barrell politics, or worse implementation of austerity measures like we see in Greece today. In such a scenaro precious metals may fall in price, but their desirability would be maintained as a tangible resource providing protection against default on the debt since the only way to avoid default in a deflationary scenario without the tool of money printing (which is inflationary) is to instead cut government spending approximately in half otherwise the debt is unpayable. So I would need to see the combination of positive real interest rates, government spending being cut in half, and the economy being able to sustain itself without free money in order to turn bearish on metals.[/QUOTE]
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