"Buy now because silver is going to $10,000/oz tomorrow!" ( or "silver to da moon!" ) is the sort of pitches I'd often hear in 2012 when my ears were first tuned into the cries of permabulls that the US dollar was going to die a terrible death that year or next. Never mind that the USD is as strong as ever (in recent years) and there really never was any good evidence that the USD was in imminent peril. Around that time, many of the same permabulls were exclaiming the the all-in lowest cost to mine an oz of silver was like $36 and that if the spot price of silver dropped below this mark, it would cause the death of silver mining companies. Here we are nearly 3 years later and I'm still laughing at myself that at one time I fell for all that silly fear mongering and wondering at what point those dire SHTF cries will pick up again....because I am convinced it certainly will. Funny stuff when you look back at it all. . .
So the question remains, "why are we stacking again?" So far its been nothing but a waste of time, energy and hard earn money but i still refuse to sell my stack and hoping i can turn a profit ine day.
Depends whom you ask. There are some vastly differing notions and reasons as to why stack and what to stack. But, no matter what that reason be, the absurd claims of many permabulls has nothing to do with any of those plans because today, the wild permabull claims (forecasts) are not based in reality, merely pure hysteria / emotion and self-serving interest. As a stacker myself, I am convinced that silver will serve a purpose to humans as far down the road as I can imagine but not necessarily the same or equivalent purpose as it has or had centuries or even decades ago. But I could be wrong, right? .
Intergenerational wealth transfer. Hedge against government taxation policies and capital controls. Hedge against banking malpractice and bail ins. Hedge in a balanced portfolio. I am NOT a bold bull or bug. I just want it to do its job as a store of wealth without counterparty risk with the properties of a currency. The only thing that makes me lean marginally more bull than bear on gold is this [youtube]http://www.youtube.com/watch?v=_mmL8X_2Ces[/youtube] The whole silver to 500/1000000000 thing is stupid (unless you are into decades). Silver is like a fluctuating prize bond. It never can drop to zero. There is an upper limit on how much is practical to keep physically anyway and it actually is not much money to hit that limit. Storing 1/4,1/2 1 metric tonne of anything is inconvenient.
The mighty dollar WILL fail. Its only a matter of time. Could be tomorrow. Could be many years from now. Until it does fail, they'll keep printing the stuff. And I'll keep stacking silver
Could be 200 years. Not that relevant. Roman currency took 500 years to devalue and debase (it was not fiat but silver and gold based). Same in ancient China 100s of years. Sure that is the truth under the lie. All fiat, indeed *all currency* does die. That is why the argument has weight. In terms of empires on the scale of Rome or the Ottomans or the USA - Just not on necessarily on a human timescale. It gets replaced with new currency eventually. See old franc, new franc, euro. Now does currency die because nations and empires fade or do empires and nations fade because currencies die?
There he lay, a vast red-golden dragon, fast asleep; thrumming came from his jaws and nostrils, and wisps of smoke, but his fires were low in slumber. Beneath him, under all his limbs and his huge coiled tail, and about him on all sides stretching away across the unseen floors, lay countless piles of precious things, gold wrought and unwrought, gems and jewels, and silver red-stained in the ruddy light. - J.R.R. Tolkien, The Hobbit Source:
Everytime i see the 30yr silver chart the more I realized what a mistake it was to stack silver. We say it is use against inflation but how can that be if it keeps losing value? I know most of us count in ounces and not dollar but one can not ignore the fact that it is dropping in monetary value. Dont get me wrong, PM does in fact rises during economic turmoil but id rather have a strong economy but if it does go downhill id like to think that i have the worst case scenario covered.
By the way this is a fascinating lecture on currency in the Roman empire if you (as I do) find economics interesting. Please note I am not trying to promote currency collapse as a reason to buy gold and silver but this is an outstanding lecture on the fall of Rome via it's currency. It entirely predates current events and is Professor Joseph Peden's 50-minute lecture "Inflation and the Fall of the Roman Empire," given at the Seminar on Money and Government in Houston, Texas, on October 27, 1984. It is a really wonderful lecture. I did not upload it to youtube and I don't like the context it is placed in or the title it has been given.....the decline of Roman currency and economics was slow and there was no rapid collapse. It is however a great listen. [youtube]http://www.youtube.com/watch?v=ThgsKuv4Ej0[/youtube]
By that definition, physical precious metals doesn't apply because there is no contract one needs when stacking bullion. And still, there is plenty of risk of devaluation of those same precious metals after they are purchased. .
is the moon full yet ? or its coming ? I am buying again soon enuff. if its going to !0 grand tomorrow, it does not matter, since I have not get hold of the metal yet.
So I opened a thesaurus and apparently another term for permabull is fulltimeretard. $10k/oz? $1k/oz? $36 mining cost? Yeah maybe a couple of tiny mines who actually tried to refine sewerage sludge because silver was above that price range, but if they honestly believe that the average cost per ounce went up to $36/oz then yeah, they are 'permabulls' $36/oz? Really? dafuq did all the miners do? Buy solid gold shovels?
But it is relevant considering never in history has this type of currency been/is handled by the corruptness of a modern day US Treasury.
