New here, when I first got into stacking silver it was made clear to me that due to the industrial use Silver acted as a Commodity. This was supposed to mean that when economic times get tough the demand for silver would drop. This has been compared to the gold with no serious industrial uses that provided a stable store of wealth in such times. The recent movements of silver through the US default drama have not followed these predictions. Silver charts have followed the gold charts over the past weeks. Why is this? is this a result of people like us realizing the monetary properties of silver?
Hi Richard, Its both, very much both a monetary metal and industrial metal. Thus the perfect hedge.. as Jim rogers says... if the economies are booming.. buy silver, if the economies are tanking buy silver. 1for1
Neither Its a precious metal !! ...Well thats what i see it as nothing more nothing less. I see gold the same
You never know with silver, one day it acts like a commodity, the next it acts like a pm! It is both! :|
We are all silver stackers surely because we believe that sound money will eventually shine through and at some stage when there is enough fear in holding fiat currencies that silver will join gold as a perfect inflation hedge/insurance policy/fiat accounting tool. So if this big assumption I have made above is correct, is it not then possible with all the shenanigans going on in the US, with stock markets having a very rough trot at present, that when people are pulling their cash out of shares and normal commodities that they are finally realising that holding cash is just losing less and parking it in something safer?
Think of it as an 80/20 commodity/money mix. Gold is the other way around. Then again, if you take Martin Armstrong's viewpoint on it, even fiat is just a commodity.
Cheers guys for all your input. I'm a bit happier with my understanding now. I got into this with the view to own something in short supply that is currently undervalued. As I spent more time here I kept seeing the commodity/money issue rear its head. One thing I have done from the start was to cost average by buying each payday regardless of spot movement. There have been times where I didn't want to as everyone on here was talking the price will drop when...... happens. Example when the US debt drama was unfolding. My thinking was that any real drama unfolding with Obama would only result in more war. I read somewhere that over 500 oz goes into one tomahawk missile. Lovely 80 you are 100% right sound money has to prevail at some stage, all Fiat currency's have a shelf life, coincidentally about 40 years. Just enough time for the elite to completely fleece the sheeple in the process.
