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<p>[QUOTE=&quot;InfleXion, post: 1503241, member: 29012&quot;]1) This is a difficult question, because the higher the price goes the more it will be in demand as people take notice. I do not plan on selling any of my silver for less than $70/oz since the next fibonacci level after breaking $50 is $75, and my first sizeable sell target is $110 (due to $114 projection below). Though I will only sell as much as I need to put money into other things. I don&#039;t plan on holding much funny money. </p><p><br /></p><p>The central banks have no choice but to monetize the debt. We are on a slow motion hyperinflationary path. The only way to avoid that is to cut spending in half. Interest rates cannot be raised in an economy this weak where banks only survive by making loans at higher interest rates than they borrow from, and every now and then they require a bailout anyway. I&#039;ll be a buyer of silver at $500/oz as long as I have spare cash and nothing else I need to spend it on. </p><p><br /></p><p>2) I never stopped buying, whether $10 or $50. It&#039;s all cheap if you ask me. There&#039;s less than half a year&#039;s worth of mining supply available as refined silver on the market today, and demand exceeds supply every single year. It is only met by &#039;scrap silver&#039; as in people selling their coins and jewelry for smelting. You&#039;d be hard pressed to find a commodity selling for 45% less than it did in 1980, but silver does even though it is projected to become the first metal to hit a shortage.&nbsp;&nbsp; </p><p><br /></p><p>3) $26 was the floor IMO. We could break down below that if deflation takes hold, but I highly doubt there will be much available at lower prices. I would not be surprised to see a touch down to the 2008 high of $21 since that would be consistent with this bull market. </p><p><br /></p><p>In 2004 the high was $9. In 2008 the high was $21, a 133% gain from $9, and then dropped down to $9 again. In 2011 the high was $49.85 which was a 133% gain from $21. For this trend to continue silver would drop back to $21 again before reaching $114, but any drop below $25 (paper price) will bring out (physical) buyers everywhere so good luck. If the paper price gets too low and nobody is selling then the physical market will separate and then spot price will become irrelevant anyway. </p><p><br /></p><p>IMO a return to $21 will necessitate such a substantial rise by drying up the supply, so the bankers don&#039;t want that. They like $27 just fine. It&#039;s high enough to keep the supply in check but low enough to convince people it&#039;s not worth buying. The CME lowered margin requirements across the board this week after all. In the absence of QE3 or LTRO3 they are very concerned about deflation, but the central banks will eventually be forced to inflate because if they don&#039;t then the too big to fail banks balance sheets will deteriorate as asset prices plunge, and their insolvency will be their undoing without additional stimulus in that case. If that happens, the derivatives market implodes, and the entire global financial system goes under. They aren&#039;t going to let that happen.[/QUOTE]</p><p><br /></p>

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