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<p>[QUOTE=&quot;InfleXion, post: 2056624, member: 29012&quot;]Thankfully silver is more a monetary metal than an industrial metal. That&#039;s why when gold goes one way and copper goes the other, silver always follows gold. Any boon from industrial demand is icing on the cake.</p><p><br /></p><p>Let&#039;s consider the big picture. Silver took 10 years to rise from $4/oz to $50/oz. In the last 3-4 years it&#039;s dropped back to $16/oz. This is still 4 times more valuable than when it started. Stocks haven&#039;t returned gains anywhere close to that in that same cherry picked timespan. It&#039;s when the bull market started afterall, and makes the most sense. Stocks and bonds are at all time highs yet metals, even at their now slashed prices, have been nearly twice as profitable over the duration of this bull market, and stocks haven&#039;t even had a corresponding correction yet on this leg of the race. So there&#039;s no question that the trend is still your friend in spite of how far the price has fallen.</p><p><br /></p><p>When taken in context, metals had to get hammered, and stocks+bonds had to get pumped up with Fed money just to get half the gains that metals got. In spite of metals&#039; superior rise over this span, traditional investments appear overbought, and metals appear oversold. While this could be a sign that metals are actually overbought, that isn&#039;t likely considering that silver is still below the cost of production. The more likely explanation is that metals were extremely oversold to begin with, which is lent further creedence by the fact that they are competition for fiat currency which is the mechanism by which money is created out of nothing for the purpose of empire expansion. It was this immoral free money creation that first sparked my interest in metals, and silver in particular, as being a hedge against the hidden tax of inflation, and notably vastly undervalued compared to historical norms.</p><p><br /></p><p>Cycles take way longer than 4 years. They are more like 30 or 40 years. The longterm trend is still very positive, prices seem to be building a base, and we could very well not even be halfway through this bull market. This doesn&#039;t mean the price won&#039;t go lower, but to me it is very cheap and an investment I am extremely comfortable with at today&#039;s prices. I&#039;m not expecting an immediate rebound either though. The price discovery mechanism is broken due to leveraged contracts being traded on margin with money that doesn&#039;t actually exist. Until the physical market calls the paper market&#039;s bluff, silver is so cheap and in such short supply that it can be moved far more easily than gold. An entire year&#039;s worth of silver mined could be purchased for less than $30 billion, and there&#039;s less than half of that on the open market, and of that it&#039;s mostly fractionally leveraged contracts without the underlying metal to back it up. The lower the price goes, the easier it is to push it down.[/QUOTE]</p><p><br /></p>

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