What do you think will happen to Silver in the next few years??

Here in Illinois we have taken a contrarian approach to the huge deficit, our governor by default, Pat Quinn has abandoned his maverick ways and has adhered closely to a raise taxes model. State Income taxes have jumped, all sorts of fees and such have been raised. I see that the prices for food and energy have also jumped but in order to calm inflation fears such numbers are now off the books. The problem in Illinois is the cost of corruption, 19 year old relatives of connected politicians making 100 grand a year as home inspectors for the state, Unfortunately, TRs and Wilsons progressive reforms of the last century never were quite enforced in Illinois.

 

Log in or Sign up to hide this ad.

Zeplyn, it doesn't work that way. Once a Treasury bond, note, etc. is purchased ( such as by China), all they can get is the interest until maturity. They could resell the bond themselves, but probably lose more money in the long run. They can complain all they want, but they can't say they want their money back. There use to be callable notes up to 2009, but they could only be called by the issuer, the US government, and not the buyer.

Jim

 

My impression is that it may not be such a steady incline, but rather like a graph of a line starting at zero that begins slowly upward and eventually approaches infinity. Our national debt seems to be over the hump, if that is any indicator for how metals will perform.

http://zfacts.com/p/1170.html

 

If I am wrong, I will change my position and investments accordingly. Flexibility is key, but deciding in advance that the situation is hopeless is just as bad as unawareness to other possibilities. You have probably read here that I consider it a 50/50 proposition whether there is inflation or deflation. While it is true that food and energy prices are rising, this is due as much [maybe more] to the rapidly growing middle class in formerly third world countries. Demand is rising faster than supply, and there is nothing that monetary policy can do about this. It isn't inflation. It is a shift in the demand curve on a world wide basis. Regarding the debt held by China, US Treasury bonds and notes are uncallable, so they cannot be "called" by the holder. Also keep in mind that in 1945 the national debt was $260billion and Gross National Product was $212billion. Things were not much different than today and the following two decades were not that bad. So people that think there is no way out of the present situation need to study history. So the demise of the dollar and America is no sure thing, and a return to normal is no sure thing. I think the proper approach is to sit squarely on the fence and watch future developments closely. Anyway, that is what I've been doing.

 

No worries, though...Raum Emanual will get it all straightened out.

 

Don't disagree with your post but exiting our dollar denominated bonds (likely at a loss) would be a big problem for us and painful for the Chinese. Besides the "lack of confidence" statement this would make the other notable problem is that if they are selling they are likely no longer buying our bonds either. This would truly be a disaster.

Regards,

Bluesboy65

 

People who have held to the deflationary theory are waving the white flag, there is capitulation in the market and we have mild inflation in CPI statistics. I Don't know why you do not recognize this. Also, demand rising faster than supply does not mean a rise in prices is not inflation; it is inflation according to the CPI calculation.

 

From what I've read, many mutual funds did move out of PM in December and January, which partially accounts for the price drops last month.

Also, you mention that people "gotta have food, gasoline, etc." If hyperinflation hits, people don't want to accept "money", because "money" is worth less day by day. In such situations, one can use one's PM to make such purchases. And if our present inflation doesn't lead into hyperinflation, one can always sell the PM later.

 

Wait...wasn't that when they raised the top marginal income tax rate to 90%? :scratch:

 

i see silver hitting mybe 50 bucks this year and later on higher

 

Yes and a recently reported short squeeze has been a factor in the recent run in silver. Is that a Rat Terrier?

Regards,

Bluesboy65

 

Is the U. S. still paying farmers to NOT grow food?

 

@ $33oz now guys!

 

Time will tell. I've explained how prices can rise without inflation. I've also explained elsewhere here how this is a two step process. For example, step 1 would be an increase in demand for oil causing a rise in the price. Step 2 is what the Fed does about it. If they do nothing, the rise in oil will be deflationary because people will have to reduce spending elsewhere to buy oil, or buy less oil. But if the Fed prints new money to pay for the oil, there will be inflation. In the 1970s the Fed "printed" the money through a process that became known as recycling petrodollars. We don't know yet what they will do this time. So people can guess, but nobody can know the outcome yet. The Fed is trying to liquify the system, but at the same time debt defaults are undoing much of the effort.

I say this to explain what I believe is the proper way to think about the present situation. Everyone has to decide for themselves how to best deal with it.

 

Probably. Maybe there is a farmer here who can confirm it.

 

Don't know if this is what you are asking, but my neighbor is a huge cherry farmer..had to drop 30% of his crops to the ground and prove disposal...so, yep, it does still happen. Perhaps just incidental? Disgusting to me..they couldn't' even donate them...

 

Time has told and we officially have inflationary pressure; not my opinion but fact based on gov't statistics. It's fine that you're holding to your opinion but it's useful for people reading these posts to keep in mind that you hold to a radical view that is not supported by the facts. Also the Fed does not respond directly to oil prices. A rise in oil prices represents a significant part of the input costs for business and can cause consumer prices to rise; this has been the case.

Regards,

Bluesboy65

 

In a sense you are correct -- that my views are currently considered "radical." However, they are well-established truths from an earlier time when we actually had significant inflation. I guess we will have relearn. Everyone can make up their own mind about this. Some will choose to accept government figures for what the numbers ARE, and some of us will dig a little deeper to discover what the numbers MEAN. Good luck to you.

 

As I have mentioned in this thread several times, I think our American culture/way of life is being driven down the drain pipe. I have also mentioned several times the word hyperinflation. Our Gov is just now starting to mention the "I" word and as World events unfold before our very eyes and our debt crisis grows to even larger sum's, we are doomed to the mis-management of our once Great Country!

If you are not buying Silver at these "low" price levels, you should be. So if you are not, then buy guns, ammo and anything to protect yourself as the day is fast approaching that will change the face of America. You cant say that I did not tell you so. It is really just beginning to unfold.
I wish you all the best of luck. Buy MRE's water filtration, guns, ammo, silver, gold, get out of the US Dollar and prepare to "bug out" in the event you loose your job and home.
I am predicting Silver at the end of 2011 to be $74-$90 oz. I believe it will still go higher as the Book of Revelations is starting to unfold as well.

Go Silver go. At least I have preserved some $$$ in the rolls I have put away.


God Bless America and may we not suffer all that is said to come.

 

Silver will climb to $50 - $100 by year end in my view. It is already pushing what gold was in the mid 1960's.