201 replies to this topic

[ZenOps]

$40 US that is, it has yet to break that in Canadian dollars (never thought I'd say that)

Seems to be a little bit of panic buying in the last few months. US dollar monetary base diluted to about 1/3rd its potentcy since late 2008 probably has a lot to do with it.

http://www.chartings...pply-1917-2009/

It could also be the idea that Utah govt now takes gold and silver as acceptable currency alongside the US dollar, a dozen states are set to follow.

Side note: Corn will probably hit the $8 per bushel mark soon (up from $2 a bushel back in 2005) and I would not be suprised at all to see $10 per bushel before summer is up.

[scouterjim]

Silver did this in the early 1980's. People invested heavily, then WHAM the price dropped enormously. many losst all they had. The only precious metal to invest in is gold, and even that is very risky. Me? I have investments in a recession proof industry: a brewing corporation. Over this whole recession, my shares did nothing but go up. They split three times over three years. Standing at about $45/share, and set to split again. $$$$$$$!!

Edited by Charles Anthony, 10 April 2011 - 05:59 AM.
deleted re-copied Opening Post

[ZenOps]

Yeah, it has yet to reach that peak.

Mind you, 30 years ago, you could go to the movies for a buck, now its closer to $15. If you go by that rationale - this peak could hit $750 an ounce before it drops.

[maple_leafs182]

I've been telling people to buy silver on this forum for over a year, I still believe it is cheap.

It's trading at almost $42 American.

I know some people say that banks like J.P.Morgan are manipulating the silver market, they say J.P.Morgan is naked short selling silver which means there is more paper silver then real silver. If this is true and people start demanding the physical silver, J.P.Morgan will be forced to buy the silver off the market causing the price to rise even higher.

The NYPost reports that JPMorgan (JPM) is under criminal and civil investigation by the federal authorities in regard to trading in the Precious Metals Markets...
Source

[blueblood]

$40 US that is, it has yet to break that in Canadian dollars (never thought I'd say that)

Seems to be a little bit of panic buying in the last few months. US dollar monetary base diluted to about 1/3rd its potentcy since late 2008 probably has a lot to do with it.

http://www.chartingstocks.net/2009/03/chart-of-the-us-money-supply-1917-2009/

It could also be the idea that Utah govt now takes gold and silver as acceptable currency alongside the US dollar, a dozen states are set to follow.

Side note: Corn will probably hit the $8 per bushel mark soon (up from $2 a bushel back in 2005) and I would not be suprised at all to see $10 per bushel before summer is up.

Corn will not hit 10 dollars. It would take a crop failure and 200-300 dollar oil to do that, which would put us back into recession. Corn prices always drop for the november contract because of harvest and the large amt of new crop corn in the system.

[GostHacked]

I've been telling people to buy silver on this forum for over a year, I still believe it is cheap.

It's trading at almost $42 American.

I know some people say that banks like J.P.Morgan are manipulating the silver market, they say J.P.Morgan is naked short selling silver which means there is more paper silver then real silver. If this is true and people start demanding the physical silver, J.P.Morgan will be forced to buy the silver off the market causing the price to rise even higher.

When the dollar crashes, what will be the value of the silver then?

[geoffrey]

When the dollar crashes, what will be the value of the silver then?

Obviously higher than it is today...

[GostHacked]

Obviously higher than it is today...

Explain?

[maple_leafs182]

When the dollar crashes, what will be the value of the silver then?

I would say it depends.

If the Fed continues to flood the market with dollars devaluing it leading to OPEC and China dropping the dollar. I would say silver would appreciate verse the dollar because the market would flood with even more dollars as people rush to get out of the dollar.

I believe this will happen, this is why I believe there will be a QE3 or something similar, I may be wrong. If you want an exact dollar value I could not tell you but the number will be 3 digits.

If the US admits it is bankrupt and the Fed stops flooding the market with dollars then the US is sure to go into a recession. Interest rates would skyrocket as people try to rebuild their savings. If this were to occur, I would think silver would depreciate verse the dollar as a result of deflation in the economy.

As of right now I see no reason to sell my silver.

[ZenOps]

QE3 is pretty much inevitable, and within the next month no less.

The US has to print money or default on some loans. If the US defaults on some loans, then the entire trust of the system is gone. It would be equivalent to not making a minimum payment on a credit card. In which case, all the creditors to the US would have grounds to completely pull out of the US regardless of any "side agreements" Collapse within a day probably.

Since the US does have power over its own printing presses, they can print as much as they want. They will be scorned and derided, just like the first two times - but its the much easier path of the two scenarios.

Which means all commodities will skyrocket with each QE. Corn? I'm hoping it won't get so high to the point where people are starving, but I'm not *that* hopeful.

Edited by ZenOps, 14 April 2011 - 06:13 AM.

[maple_leafs182]

its at 42.46 as of this second...

I don't think they will announce QE3 within a month, I think QE2 still runs for a few more months.

[ZenOps]

Good catch, meant to say raising the debt ceiling, which they will have to do soon.

We are closing in on the $50 1980 high (not inflation adjusted even)

Mind you, it is very unfair to all commodities to compare to the US dollar now that the US completely threw the monetary base out the window in 2008. It feels a lot like Mexico when they dropped three zeroes off their currency - more than a Zimbabwe type money printing.

[maple_leafs182]

Man silver is climbing fast now, its already at 44.50

Edited by maple_leafs182, 20 April 2011 - 12:04 AM.

[ZenOps]

$47. Now up 165% in one year, and over 1100% in eight years when priced in US dollars.

The scariest thing I've ever seen to be honest. There are all sorts of different paper dollars floating around the world, but Silver IS money.

The more that it goes up, the more that I'm thinking I should never sell back into a US dollar. I think I might take the opportunity to diversify into some other nations currencies or tangible assets. Convert to Rubles and buy up some abandoned mining towns? It would be a lot less of a risk than converting to US dollars and buying up abandoned Detroits autoindustry.

[maple_leafs182]

$49 right now.

It is going up like crazy right now. I think it is going up way too fast, there will probably be a big pullback or the dollar collapse is speeding up.

Edited by maple_leafs182, 24 April 2011 - 11:42 PM.