When will Silver be Cheap again?

1. There's not exactly peace in the Middle east right now
2. bread is still above $2
3. we are over $18,000,000,000,000.00 in debt

 

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My inclination is that in part, we are responsible for keeping the silver price high. We buy lumps of silver because it is pretty and put it in a box. I know there are medical and technological uses but I wonder how much of the market we are stacking?

 

Not understanding many of the numbers, theories and comments thrown around on this subject. Such as when gas is $2.25 a gal then Silver will be $15. Well gas here is $2. a gal and Silver is $16.50 Where prices are going is really guess work. Gold and Silver have been manipulated beyond our control for no valid reason for years. The one thing I do believe is the dollar can fall and bullion should be the way to go, rather than buying numismatic value coins.

 

But there are very valid reason for what most call manipulation and others call high leverage financials, such as hedging, leverage of investment, or just plain gambling. There are as many hard core gamblers as there are stackers and if the paper side of PM didn't offer such a temptation of gains of multiple increase in short time on small dollar investment, there wouldn't be any 'manipulation' or paper investing. Stackers call it manipulation because they wish everyone to be obsessed with shining solid metal as they are, and this is OK, but there is no evil side trying to make it higher or lower to antagonize you, they do so by their action to leverage a bet on the direction, although more metal contracts are by hedge funds, investment banks and government(s) agencies, bullion/jeweler wholesalers , etc. than individuals like us.

But they wouldn't do it IF it didn't help them financially. Since it is so leverages, when silver dropped below $20 so rapidly, those who had contract.options already or bought at the start realized gains of many times their investments, and with computerized trading 'Biggies' can recognize a trend and jump in to pump the action. So if someone was lucky they would have bought puts one day and sold them in 2 weeks and even though they may have only made a few bucks per unit ( ounce), they only paid a few cents for the right to sell it. The they can use the USD from the sale and buy other things, even physical silver when it recovers ( like the bullion dealers). So it is really 2 different groups of bullion people~ those who want to hold it forever like an icon for the the belief it will save them from all things bad in life ( if they ever occur), and those who want to use the leverage of people desire for pm ( up or down, you can bet both ways) to enhance their $$ income they can use to buy other protections for the future.

So it is not the evil side, just one few of us want to recognize , but there is no reason if you are not opposed to 'gambling' or need to protect your commercial supply and price with hedges, not to use contracts, either full price for hedging ( no real gamble, you will get the silver; or use puts, calls, straddle, etc. options on the silver contract for higher leverage, but you may lose all money invested as they are time limited. No one or government is wasting their time or money to drive anyone into financial doomday, we just are of different beliefs as to how to look at PM.

 

That's a very good explanation. Thank you.

 

InfleXion:

Glad your back.

 

Thanks longnine Good to be back.

I fail to see what isn't evil about extracting profits from the financial system without providing a good or service. It's one thing if you go to the casino. The casino is responsible for their own finances, but the tax payer isn't on the hook if the house loses.

 

Agreed. "Too big to fail" is an abomination not Capitalism.

 

Who said they didn't provide any service? How much "service" do we ever add buy buying pm more than what traders offer? Their service is market liquidity, something you do not value unless you do not have it.

 

And neither is the Taxpayer on the hook if people buy contracts or options on the bullion market. The feds don't run it anymore than they do casinos, the exchanges runs the 'gambling' service on PM market, the gains are at the expense of the losers, and the exchange always come out ahead ( like the casinos) because they handle the vigor ( margin).

 

I think a more accurate description would be when the "too big to fail" banks gamble/lose money the tax payers bail them out. To the tune of 700 billion so far.

 

With real Capitalism stupidity is checked quickly. Stupid bets are cleansed away when the business chews carpet and assets are purchashed at market clearing prices by those who weren't sucking on a hookah pipe. Since no one views the CEO as "talented" or "amazing" anymore he goes off mountain climbing in Peru "seeking the meaning of life" and can't destroy any more businesses. And with luck, maybe a puma will lodge a couple of fangs into his head.

 

1 year ago

 

How much has this cost the taxpayer? How much net did the financial firm bailouts cost the taxpayers Tinpot?

The US taxpayer has made hundreds and hundreds of billions of dollar profit on the financial bailout. How about reporting that instead of erroneously leading people to believe the taxpayers lost money, huh?

 

Well, even if it was a short-term net win for taxpayers, a bailout is still a bailout: it's still propping up businesses that under 'ideal' capitalist rules should have failed and dissolved. Right?

 

I've got a bridge to sell you.

 

I saw the prices they were getting for the options they sold back, but if someone wishes to believe something bad enough there literally is nothing to convince them otherwise.....

 

I do not disagree. I am always against all bailouts unless it was caused by other country's actions, (economic warfare does occur). I hate them because it removes the fear of failure that is the main fear we can have in a CEO. He needs to fear his bonuses and deferred comp may not be there.

So, I completely agree in opposing bailouts, just for different reasons than Tinpot. But, in the end, we have the same net position.

 

They've scammed trillions so I'm not going to give them a high five for giving a couple hundred billion back.

 

So here we go again, someone makes a factual comment about silver manipulations and it is answered by comments on government conspiracies and no proof to back them up. Why stop at trillions, why not use bazillions as other conspiracy proponents and bullion sales companies use. Sure it is all a conspiracy and manipulation, because if it wasn't , silver would be $100 oz. and every stacker on the site would have 100,000 oz. stashed at their residence as the SDB at the banks can't be trusted. If it only made partial 'sense' I wouldn't say anything as everyone has opinions, but this is so deeply off, most will think it is sarcasm instead of a true belief. No wonder people comment badly about the bullion 'Investing' forum.