As we go through a difficult period of economic contraction and uncertainty, this article helps keep our eye on the macro situation, and is therefore, rather comforting: http://www.myglobalinvestments.com/...lity-of-1000-silver-before-hyperinflation.cfm
Precious metals - no disrespect intended but this is another article full of fiction not facts. There are plenty of good reasons to invest in silver, this article/ author states very few, and overstates the highs. Be critical of what you invest in! Check his facts in the article for yourself. I did and it's pure bs. It's possible to be right on the price direction and completely wrong on why.... Just read some posts on this blog lol
In the long term there is no telling how high silver will go.. if it gets to a level of scarcity whereby industry cannot be supplied in suffucient quanitites silver could go to 1for1 with Gold. In the next 5 years id say $500 would be the highest with nominal inflation but if you factor in a faster inflation $1000 is not an impossible figure by any stretch. Look at Rhodium charts if you doubt a precious metal can have % increases in the 000's in the short term. 1for1
I've been on record for stating parity at some point in the future is inevitable. Prepare to be laughed at for holding such convictions though.
Cmon Guys lets look at this rationally. I love silver and want it to rise but this sort of talk distorts your sell point- you do plan on selling one day don't you !? Don't be the guy hanging on at $80 waiting for the next big move up? -sell the rubbish and buy a house. If you have any facts on this topic then I am genuinely interested - I have seen nothing on this topic to date that convinces me in any way of a long term trend lower in ratio. -The more wild the prediction the more chance it is wrong - look at the real professionals they don't make these claims ?! Not even the permabulls state 1:1 ratio - 16:1 is bad enough. -If all the permabulls are right: Silver may get a 1:1 ratio with gold in the year 2200 but we will all be long gone by then - so its a dud argument. -In our lifetime you would be very lucky to see 16:1 ratio for a brief period (days/hours) before it snaps back the mean. - and I mean very lucky. -We wont be running out of silver any time soon !!!! -Why could the GSR not go back to 100:1? is that not perfectly possible? -Central bank demand for gold? -$1000 - $500 silver? I hope you are not talking about Australian dollars? Wild claims. Lets remember that the Australian dollar is and will remain a proxy for resources - how is this possible !? -Stop believing that silver is this magical metal and the world will not survive without it? -When it gets too expensive industry will look elsewhere, and they will work around it - humans do nothing while things are cheap - example - OIL What is your sell price for silver if it 'could' reach $1000 ?
I would be more than happy with $80 silver and would sell the majority of my holdings what is your sell price?
Pointless exercise to have a sell price denominated in debased currency where the goal posts are constantly moving. It is a store of wealth and if the system breaks down what can you do with your shiny bits of paper then? I will 'sell' (or exchange) when I see some semblance of sanity in the world monetary and economic systems and the silver deficit has been rectified. I do intend on exchanging for gold at some point, but not based on some historical reference point. The big picture and trend shows no sign of even slowing down let alone changing course to make me change my mind at this time.
You make a good point about 'denomination in debased currency' but I for one don't think Australia will see the debasement that you are talking about. America - Mabey (20% chance) Australia - Not so likely (5%)
Trend? Nothing to see here, move along folks When I look at the GSR ratio I see increased volatility with what seem to be a gradual but determined downtrend over the past two decades - but I'm no expert, just sayin
Thanks BlackSheep, I am not one for Technical Analysis but that chart looks sideways to me? The only thing bearish is the red lines you drew on it
Hmmm when the same private banks own the Reserve banks of the world and control all fiscal and monetary policies and knowing how the world economies are all tied together without any financial firewall protection i fear your courage that the Aussie economy is fail-safe or 5% only chance then i think you have understated the risk.. sure i agree in the next 2 years but after that it could be a snap collapse. Hope for the best, prepare for the worst. Why Silver improving on the GS ratio? cos its 1:12 out of the ground supply yet silver is consumed. Gold above ground continues to accumulated.. what you have in silver is a depressed asset class which could potentially get cornered given the aggregate total cost to buy all the silver in the world.. the Hunt bros did it in the late 70's.. so rationally we could have an event whereby industry could not get supply as investor demand outstrips supply. The facts are if demand outstrips supply, and industry NEEDS the metal, the price will spike in the short term.. I buy and sell in given time frames and don't consider a future high price as the only parameter in which to buy and sell. To say its not realistic or just a perma bull mantra is not to have a firm grasp on industry fundamentals or understanding the difficulty of "TURNING ON" mines when demand can not be met by supply esp in the short run. A lot of why i invested in silver is the potential upside.. if it seems like a dream it may be because its too good to be true.. but im guessing that its everyone in a fantasy land.. our peception of reality has been tainted but the truth is simple. Why is a bubble real estate purchase a good buy when silver is in a price depression. Follow Jim Rogers and youll understand why commodities and ag a king and other asset classes are in a bear cycle. 1for1
Why Silver improving on the GS ratio? cos its 1:12 out of the groud yet silver is consumed. Gold above ground continues to accumulated.. what you have in silver is a depressed asset class which could potentially get cornered given the aggregate total cost to buy all the silver in the world.. the Hunt bros did it in the late 70's.. so rationally we could have an event whereby industry could not get supply as investor demand outstrips supply.I think above ground ratio is probably the most relevant point I hear on the topic but I don't think its enough to persuade investors to value silver in direct ratio to gold? Who says gold will not loose $500 and bring the ratio down that way? silver does not have to rise to achieve these numbers? If you are waiting for someone to corner the market then you are speculating. (unless you plan to corner yourself it or know someone who definitely will then its a dream) "Why is a bubble real estate purchase a good buy when silver is in a price depression. Follow Jim Rogers and youll understand why commodities and ag a king and other asset classes are in a bear cycle."I do follow Jim and this is my point exactly. I own property but I am not selling it. I am not advocating buying Australian property at these prices but if silver was at $80 then housing would be depressed and silver inflated. Bullion Barron has written some great articles on it. I plan to sell my Silver and buy Agricultural Property the top of the silver bubble when property is depressed. http://www.bullionbaron.com/search?q=house+silver+ratio Bullion Barron states a $350 silver price but I am looking for alot lower before I switch.
Not going to get into an arguement over it. (Been there on this forum too many times to bother anymore) If you have a price point for sale you're happy with, sell it.
Ponzi - Wants to sell silver for fiat at some arbtirary low ball target, is invested in housing and won't sell, doesn't see any reduction in the GSR, says a GSR of 16:1 is bad, demands facts be substantiated but posits opinions . . . just saying. Ponzi by name, . . .
And how many posts did it take before you reached this stage? My plane landed about a week ago... :lol: People need to do their *own* research, instead of hoping to be spoon-fed here at SS. Silver is a small part of the larger picture of resource scarcity.
