Posted:
#1
Learning as much as I can for now.
Q: Why was silver going up the last week or so?
Q: Why such a nose dive today (Thursday Jan 24th)?
Thanks for insight.
Silver Investors
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Views: 3130
Posts: 23
Posted:
#4
Silver is like any commodity in that the true price is based on supply and demand. It will price its self for whatever somebody is willing to pay in the current timeframe, just like in most of our other daily transactions.
Silver however has been used forever as an easy way to act and serve as money .You could have any item serve as money, but silver and gold are easy to store and transport to facilitate monetary transactions.
You can sell your pig and get one gold coin for it. See, real easy.
Since silver is valuable like gold, you would also receive about 50 silver dollars for the pig if you sold for silver.
If you think that the future may become bleak, Buy silver and gold as that may be the only way to get the food and fuel you need..If you think the future is sunny, hopeful, and rosy...NO need to buy silver.
My guess is that silver will double in 3 years or so.
Since my prognostications are oftentimes faulty I will leave it at that.
Posted:
#5
Quote Originally Posted by JimmyDrizzl:
Silver is like any commodity in that the true price is based on supply and demand. It will price its self for whatever somebody is willing to pay in the current timeframe, just like in most of our other daily transactions.
In theory, yes, in practice no. This is a very dangerous mindset to have, especially with this particular commodity and especially with the current marketplace/soft regulations
Posted:
#6
Quote Originally Posted by Wake2002:
In theory, yes, in practice no. This is a very dangerous mindset to have, especially with this particular commodity and especially with the current marketplace/soft regulations
I agree...In the final analysis it is just gambling or speculating on where the price will go. Get lucky and you cash in...Not so lucky, you lose.
Posted:
#16
Quote Originally Posted by Tinklebell:
Silver owners are waiting for Ben Barnake to quit propping up the stock market and the economy. We see real inflation now in the rise of gas and food prices, and this will continue.
Could be a 6 months or more away.
Actually your conclusion is wrong.
Silver/Gold go up when inflation risk increases..Ben "propping" the economy would support the exact opposite of this. If the FED werent propping then we would have deflation and gold/silver does not hedge against deflation.
If anything the metals market was a massive, misplaced bubble in anticipation of the FED, when inflation did not come, they dropped back to where they should be, maybe not fully yet.
I dont see silver as a hedge against anything..silver is a suckers play, a discount vs gold and nothing else.
Fair value on silver without the FED is probably half of current levels...thank the FED, without QE prices would be much lower.
Posted:
#17
Quote Originally Posted by wallstreetcappers:
Actually your conclusion is wrong.
Silver/Gold go up when inflation risk increases..Ben "propping" the economy would support the exact opposite of this. If the FED werent propping then we would have deflation and gold/silver does not hedge against deflation.
If anything the metals market was a massive, misplaced bubble in anticipation of the FED, when inflation did not come, they dropped back to where they should be, maybe not fully yet.
I dont see silver as a hedge against anything..silver is a suckers play, a discount vs gold and nothing else.
Fair value on silver without the FED is probably half of current levels...thank the FED, without QE prices would be much lower.
Makes 100% sense. WallStreet..I look for your posts
Posted:
#18
Quote Originally Posted by wallstreetcappers:
Actually your conclusion is wrong.
Silver/Gold go up when inflation risk increases..Ben "propping" the economy would support the exact opposite of this. If the FED werent propping then we would have deflation and gold/silver does not hedge against deflation.
If anything the metals market was a massive, misplaced bubble in anticipation of the FED, when inflation did not come, they dropped back to where they should be, maybe not fully yet.
I dont see silver as a hedge against anything..silver is a suckers play, a discount vs gold and nothing else.
Fair value on silver without the FED is probably half of current levels...thank the FED, without QE prices would be much lower.
Why is it a suckers play? Silver is the most electrically conductive metal, and with technology (cell phones etc) pumping out more and more, silver is gonna be in demand for practical purposes....
Posted:
#19
Quote Originally Posted by TRAIN69:
Why is it a suckers play? Silver is the most electrically conductive metal, and with technology (cell phones etc) pumping out more and more, silver is gonna be in demand for practical purposes....
This "demand" is not why silver went from where it was up to the highs it did.
Silver was and will keep being speculated, that is why it is a suckers play.
It carries few purposes, and if you were to price silver based on ONLY the industrial purposes, where do you think that price would meet demand?
Posted:
#20
Quote Originally Posted by wallstreetcappers:
This "demand" is not why silver went from where it was up to the highs it did.
Silver was and will keep being speculated, that is why it is a suckers play.
It carries few purposes, and if you were to price silver based on ONLY the industrial purposes, where do you think that price would meet demand?
I didnt say thats why the price rose. I was simply saying it has uses other that money.
Why does it being speculated make it a suckers play. It being 1/50 ith (roughly) the price of gold means more people will look to invest due to its affordability....why does that make it bad?
What uses/purposes does gold have?
Posted:
#21
Quote Originally Posted by TRAIN69:
I didnt say thats why the price rose. I was simply saying it has uses other that money.
Why does it being speculated make it a suckers play. It being 1/50 ith (roughly) the price of gold means more people will look to invest due to its affordability....why does that make it bad?
What uses/purposes does gold have?
Its a suckers play because it really is not a historic hedge, unlike gold. I agree with you about gold btw..it serves little industrial purpose, like silver.
Silver being "affordable" as a speculative metal is exactly what makes it a suckers play. If you overlap the charts of both you will see the point.
These are just the ETF's but the concept about the gap between performance is easy to see.
Nothing wrong with speculating with a junior vehicle, you just have to know what it is and isnt.
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