Quite right. The price of paper silver may collapse. So might the price of paper currency. But in the end they are nothing but paper.
Maybe its possible that the value of the paper silver will start to crash as people sell out of paper positions which causes the value to crash and brings the physical price down at first to an extremely low level. Lots of nervious physical investers jump out and start to sell. Then silvers physical price rebounds while paper silver becomes worthless decoupling happens but only after lots of people sell when silver hits bottem. Just an idea.
It wasn't that long ago that the paper price was higher than physical.....you had to be a fool to pay spot on ebay....anything up to 10% lower than spot was normal........this was only 5 years ago.......don't pay much attention to the 'paper' price of silver.....if you are waiting for the blow out in paper silver, you will be waiting for a long, long time....it is all a matter of confidence....silver will bottom when anybody who is going to sell is out of the market...then you only have buyers left.
Old news... but silver is still delicious. Watch the new policies next month as Yellen steps in. We might be in for much higher silver prices...
What is soon to happen in Europe will eclipse anything Yellen may or may not do......the rush to the U.S. dollar will crush gold and silver if this is to happen soon.....hello $1000 or lower....precious metals are not the flavour of the month at the moment and if what I believe may happen does happen, they will become reviled for a while.......but this is the what we should look for....that is the true bottom and the beginning of something bigger.....
Good article BB. Your graph certainly puts this "bubble" into perspective... it's nothing more than a pimple! If people want to see what a REAL BUBBLE looks like then look no further than Australia's rotten to the core RE market ... :lol: :lol:
So the euro tanks and returns to its natural value of sfa but yet across the Atlantic the US dollar - which is in way more trouble than the Euro even is going to be swapped for MORE GOLD?? i think not.
Is the lack of investor sentiment going to drive silver into the ground over the next couple or so months? If so, will this stimulate large amounts of silver buying? When this happens, at what point, if at all, does that spending decisively lead to prolonged bull market movement? .
So what? Property doubling every 10 years? Look at the rate of wage inflation...nearly double every 10 years.
^^^ If those wages were doubling every 10 years then by 2010-11 wages would have been $2280 and housing much more affordable lol.
I agree, housing is more expensive then it used to be however its not as unaffordable as most people make out. I dont see people cancelling their mobile phones/foxtel/Gym/daily coffee/NewCar/Lavish lifestyle repayments yet they complain that housing is so unaffordable...it isnt.
Bullsh1t baffles brains!! :lol: if the rate of wage increases kept up with the rate of property price inflation (which it f..n hasn't!) then the world standard indicator of property affordability Average Home Price / Average Income would NOT have changed from 3 to around 7 - 8 which is where it is now in Australia SAVVVI???? :lol:
+ 1 Indeed! also, the average home wouldn't cost 8 times the average annual wage like it does now :lol:
If you plan on moving into a home @ 8 times average wage then your looking at he wrong homes in the wrong areas. You can't have it all from day 1. Buy a small home in an outlying area and do it up over 5 years. If you have to travel 30k to work every day, tough.
Hasn't changed much at all... My 1st home was outer suburbs, nothing flash, 15% interest, 10% deposit, it was hard going INITIALLY but it got paid off. Travel time to work was 35min, 28km. Income (before tax) = 30% for the bank, ~30% for the tax man and ~40% for me (& for other bills). Still had money for fun times, trail bike, small tinny, 2nd hand car. Year was 1990. Has it changed?
