The true value of silver? As far I see it, nothing. In fact the only thing that I can think of that has any intrinsic value is time. Everything else relates back to that, what is your time worth? How do you want to spend it? Money of any form be it Gold, Silver, Fait, or Shells, is only worth what you can get for it. Nothing more, nothing less. It is merely an accounting system for peoples time, and it is only worth something while people believe it is. These monetary systems come, go, and change, depending on the state of the civilisation that spawned them. Now systems do tend to get more complicated the larger they get, and the current financial system is of global proportions. The result of this is that a things perceived value (what people are willing to pay for it) will change over time depending on a variety of factors, including scarcity, possible uses, and if it is shiny. But as far as I see it, its intrinsic value is still zero.
KM - that is a very philosophical view - but surely food, water and shelter have a value as well as time. If you were stranded on a desert Island you would have plenty of time but not much food, water and shelter. A lump of silver would be worth nothing! I tend to agree with you on 'it is only worth something while people believe it is' All the same as a measure of something then why not use the loaf of bread or better a bag of wheat (since bread itself varies so much around the world). Houses vary too much and are also subject to false market values. It would be interesting to compare the historical cost of wheat with silver.
It does seem a very philosophical view and maybe one worth pursuing (if it hasn't already). (The value of time has been already been shown by many authors to be the thing that drives money, interest rates, production of capital, most consumption etc.) I could be misinterpreting KM but the amount of time in our life is of primary importance - hence why we actively spend/invest a significant portion of that time gathering food and water and building shelter in order to extend it.
I will take as much PM that you have at your intrinsic value of "0". I will even pay transport fees - just let me know. My PM are not for sale. If you believe that the plastic RBA note you have has intrinsic real value then it is time to sell out and put your fiat in the bank. For me I will hang onto my worthless shiny PM for a while longer.
what about the indigenous people of Australia there was big chunks of gold laying around it was worth nothing them maybe they used it to kill the odd roo but other than that it was worthless. i think value is made by how many people want something if no one wants it its worthless. to keep it simple the same applies to silver and gold if no one wants it its worthless, so the more people wanting silver the price will go up yes? not many people want it the price will go down?
Yes, that was the realistic value in 1932 during the great depression. The market defined the price. :| It is irrelevent whether or not there were any short term distortions in the market at the time - it was realistic value at that time. So what? That was 34 years later. What is your point? If your reasoning is that he got a bargain at an undervalued price because he sold it for more than purchase price after 34 years, then I may have to use some Bernake analogies of my own. :/ The OP: "I would like to know what people think is the realistic value for silver today."
The point is you cannot give a realistic value based in dollars as the manipulation in the value of the dollar distorts the market. The point is that silver is undervalued so what is the difference what people say -$10, $40, $100. Who cares ? It what you think it's true value will be once this economic system begins to be reset. That is the reason to buy!
Fair enough. But my veiw is different. I believe silver will rise in value over time but, as I originally stated, that is nothing but speculation. That speculation will hopefully pay off, but that is mere wishful thinking. To state it is undervalued is mere subjective opinion. I stand by my statement that now, silver's worth is what sellers take for it, and that is spot.
I think the true market value for silver as of now is probably around $10 per ounce. The rampant liquidity and speculation is what has driven it far above this price. Only speculators believe it is undervalued.
Silver at $10 would be the only commodity to fall in price over the last 3 years. Good luck with finding silver at $10. I am not sure of the current world average mining and refining costs but a mine share portfolio in the US out this year was talking about a $17/oz total production cost.
I will sell you as much PM as you can take at $40 or $100. I will even pay transport fees - just let me know.
