Why is silver still so low?

Started by Dr. Meh, August 31, 2014, 09:58:47 AM

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Dr. Meh

Not that I'm complaining since it's still a good time to buy but why hasn't silver exploded in value yet? It's just a matter of time before our debt and QE pumping catches up to us. That and the likely major war coming our way makes me feel like silver is artificially low somehow. Any ideas as to what's going on with silver?

Solar

I don't know if I'd fall for the hype over silver, considering it is far more plentiful than gold.
I too see these articles on silver "ready to explode in cost and demand", but I also recognize the fact it's all based on nothing but assumption.

Why not platinum or any other rare metal? Because most people can't afford a bar of platinum, but they can silver and the more people believe it's the next boon, the bigger the bubble grows, but like all speculative based bubbles, they burst and leave those holding assets, stuck.

Look at other precious metals, are they increasing in price the same as gold and silver? If not, that should tell you something.

My advice would be to go ahead and buy physical silver, avoid paper stock, at least you'll be holding something that still has value, but be prepared to unload it when you hit a 20% profit, then find something else to invest in while waiting for the bubble to burst so you can buy more silver at a lower rate.
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Dr. Meh

Quote from: Solar on August 31, 2014, 10:16:26 AM
I don't know if I'd fall for the hype over silver, considering it is far more plentiful than gold.
I too see these articles on silver "ready to explode in cost and demand", but I also recognize the fact it's all based on nothing but assumption.

Why not platinum or any other rare metal? Because most people can't afford a bar of platinum, but they can silver and the more people believe it's the next boon, the bigger the bubble grows, but like all speculative based bubbles, they burst and leave those holding assets, stuck.

Look at other precious metals, are they increasing in price the same as gold and silver? If not, that should tell you something.

My advice would be to go ahead and buy physical silver, avoid paper stock, at least you'll be holding something that still has value, but be prepared to unload it when you hit a 20% profit, then find something else to invest in while waiting for the bubble to burst so you can buy more silver at a lower rate.

The bubble burst a little over a year ago. At one point, silver was about $45/ounce and gold was over $1600/ounce. Silver is down to $19.50 and gold is in the $1250 range. That's why I think now is the time to buy. I can afford gold but in terms of profit potential, silver is where it's at.

Mountainshield

I have earned more investing in heating oil than gold or silver. I'm not a merchantman, but following the trends heating oil is at least something useful that there will always be demand for, it's easier to get a profit and more predictable since it actually has a demand and consumer pattern. Same with coffee.

Dr. Meh

Quote from: Mountainshield on September 04, 2014, 05:52:37 AM
I have earned more investing in heating oil than gold or silver. I'm not a merchantman, but following the trends heating oil is at least something useful that there will always be demand for, it's easier to get a profit and more predictable since it actually has a demand and consumer pattern. Same with coffee.

Silver and gold are used in a wide variety of technological applications and are very much in high demand and useful.

Solar

Quote from: Dr. Meh on September 04, 2014, 09:07:14 AM
Silver and gold are used in a wide variety of technological applications and are very much in high demand and useful.
If you have the room to store it, look into buying some scrap copper.
I say that because the economy won't be in depression mode forever, at some point we're going to start producing, most likely after the Marxist is out of office, and copper prices will probably go through the roof due to demand.

I'm sitting on about 600lbs, it's more than doubled in price since I acquired it, and that was before it's recent plunge in price, so anytime between  2015 and 2016 would be a good time to move industrial metals.

Point is, this is something you can actually barter or bargain for at your local scrap dealer. If he has what's known as "dirty scrap", meaning it's contaminated with plastic coating, like house wire, he'll be willing to cut the price if you don't mind doing the work to strip it down.
Brass is another, even lead has surged due to battery demand. And the upside, is you don't need to keep it in a safe, just throw a tarp over it and call it good.

http://www.reuters.com/article/2014/03/19/metals-freeport-mc-china-idUSL3N0ME24S20140319

This one predicts prices to fall, which would make copper an excellent investment.

http://www.mining.com/study-copper-surplus-likely-to-push-price-down-to-2-75-a-pound-97691/
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Mountainshield

Quote from: Dr. Meh on September 04, 2014, 09:07:14 AM
Silver and gold are used in a wide variety of technological applications and are very much in high demand and useful.

That's true, but you need a lot more start up capital to start turning in daily profits. I'm not a trader so I'm guessing proficient traders use gold more than consumable raw resources.

I would love to start storing copper, maybe raid some gypsy stronghold and get me some, they are always looting highway electronics for copper  :tounge:

Dr. Meh

Quote from: Solar on September 04, 2014, 09:45:53 AM
If you have the room to store it, look into buying some scrap copper.
I say that because the economy won't be in depression mode forever, at some point we're going to start producing, most likely after the Marxist is out of office, and copper prices will probably go through the roof due to demand.

I'm sitting on about 600lbs, it's more than doubled in price since I acquired it, and that was before it's recent plunge in price, so anytime between  2015 and 2016 would be a good time to move industrial metals.

Point is, this is something you can actually barter or bargain for at your local scrap dealer. If he has what's known as "dirty scrap", meaning it's contaminated with plastic coating, like house wire, he'll be willing to cut the price if you don't mind doing the work to strip it down.
Brass is another, even lead has surged due to battery demand. And the upside, is you don't need to keep it in a safe, just throw a tarp over it and call it good.

http://www.reuters.com/article/2014/03/19/metals-freeport-mc-china-idUSL3N0ME24S20140319

This one predicts prices to fall, which would make copper an excellent investment.

http://www.mining.com/study-copper-surplus-likely-to-push-price-down-to-2-75-a-pound-97691/

I've considered copper because the upside potential is so huge. But you hit it on the head about storage being an issue. I live in Orange County and we get L.A. riff raff coming in all the time to steal copper wires and pipes from buildings and construction sites so outside storage isn't a very good option. But I'll consider it if I can clear some room in the garage or something.

What's it trading at now? I think it was around $5/pound last I checked about a year ago.

washington

When to buy Gold?  It's all about timing and public perception.  Anotherwords you must pay attention every day to the markets and financial reports.  This is why Glenn Beck is an idiot.  He doesn't understand the corolation on what affects supply and demand of gold and how that drives the Gold prices.  There's also the euopean speculation about selling metric tons of Gold that lowered the value of Gold.  Need to pay attention guys, and have a gold account active so that with 1 phone call at the last minute you can go from dollars to gold. 

Look at the value of Gold and how it spiked when inflation spiked in 81.  It lasted a short period of tim and was very sudden.  It's a safe place for your money as prices aren't likely to plummet for decades, but to make money you really need to know how this specific economy operates and really pay attention around the world. 

kit saginaw

Silver never recovered from the discontinuation of Kodak and Polaroid technology.  And the NASA-cutbacks haven't helped.  It'll always be somewhat valuable, but nothing to really covet while musing on a sleepless night.

Solar

Quote from: Dr. Meh on September 04, 2014, 09:27:08 PM
I've considered copper because the upside potential is so huge. But you hit it on the head about storage being an issue. I live in Orange County and we get L.A. riff raff coming in all the time to steal copper wires and pipes from buildings and construction sites so outside storage isn't a very good option. But I'll consider it if I can clear some room in the garage or something.

What's it trading at now? I think it was around $5/pound last I checked about a year ago.
Not really sure, and probably won't look at prices till after the economy starts a turn around, that's when the world economy will follow suit and demand will turn over night.
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Solar

Quote from: washington on September 12, 2014, 03:06:24 AM
When to buy Gold?  It's all about timing and public perception.  Anotherwords you must pay attention every day to the markets and financial reports.  This is why Glenn Beck is an idiot.  He doesn't understand the corolation on what affects supply and demand of gold and how that drives the Gold prices.  There's also the euopean speculation about selling metric tons of Gold that lowered the value of Gold.  Need to pay attention guys, and have a gold account active so that with 1 phone call at the last minute you can go from dollars to gold. 

Look at the value of Gold and how it spiked when inflation spiked in 81.  It lasted a short period of tim and was very sudden.  It's a safe place for your money as prices aren't likely to plummet for decades, but to make money you really need to know how this specific economy operates and really pay attention around the world.
Only billionaire investors and fools buy paper gold.
Billionaires play in a game of controlling the mkt and know exactly when to get in or get out, while the fool lets them manipulate his paper and when these big players crash the mkt,, he'll be stuck with paper worth it's weight in gold, meaning nothing.

Paper gold, is fiat money and follows suit in it's worth, physical gold will still retain it's value even after a mkt crash.
Which one would you rather be stuck holding?
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washington

Quote from: Solar on September 13, 2014, 08:00:11 AM
Only billionaire investors and fools buy paper gold.
Billionaires play in a game of controlling the mkt and know exactly when to get in or get out, while the fool lets them manipulate his paper and when these big players crash the mkt,, he'll be stuck with paper worth it's weight in gold, meaning nothing.

Paper gold, is fiat money and follows suit in it's worth, physical gold will still retain it's value even after a mkt crash.
Which one would you rather be stuck holding?

Physical gold proofs and American eagles.

Dr. Meh

Silver is now 17.05 and gold is at 1245. I'm expecting a sharp increase in the next six months. Just a hunch.

Solar

Quote from: Dr. Meh on February 09, 2015, 09:17:43 PM
Silver is now 17.05 and gold is at 1245. I'm expecting a sharp increase in the next six months. Just a hunch.
I play the game of "what if". What if I were a billionaire without morals where would I invest?
Right now, as long as a Marxist is lining my pocket with taxpayer dollars, I'll stay in Wall St, but I look to 2016 and I see change coming with a Conservative at the helm, so again I ask "what if" we are attacked? (and we will be)

Most likely he'll go to war so I'll be looking to profit in some manner, as well as looking toward growth in industry not related.
What I will look at is an economy rebounding, people returning to work, followed by the world doing the same, so growth is inevitable and demand for energy tied to this will be a factor, so I'd be looking once again at oil.

But historically, what does the entertainment industry do during times of steep recovery?
I use entertainment as a blanket from clothes and vacations to RV's, what mkt grows the best.
Look at all these and try and predict a trend.

Something I see in the short term is escape plots, small acreage parcels of remote land with drop pod living.
Sounds weird, I know, but think abut it. War, an uncertain future, a world jostling for position because the Marxist left us weak.
People looking at inner city violence spreading to their areas where their children are at risk, and suddenly owning a so called bomb shelter on the cheap (credit) is very attractive.

Yeah, I''d be looking at the new, immobile RV, one that can be buried under ground, or easily moved to another location quickly.

But since I'm not so silver looks appealing too, and safe. :biggrin:
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