Ok fair call...I guess my perspective was the larger population of China compared to Western investors...i.e each Chinese worker brought 1/4 oz compared to Australian worker buying 10oz, a few more Oz would move off the market... Where the Chinese are so much better equipped then 'us' is saving (perhaps investing) a higher percentage of there wage in comparison... Definitely not here to argue and you've change my narrow perspective...one of the reasons I enjoy this forum and it's members...educated people sharing a common concept... Believe in the saying 'you learn by listening and not by talking' and so are always happy to learn new direction
I'm still not sure I understand. You guys discuss decreased industrial demand as though it's an afterthought / forgone conclusion. How so? Please forgive me as I'm not a silver veteran by any means but I thought the trend was quite the opposite...?
thehuckler - A large percentage of Silvers interest is based on industrial demand - many (incorrect in my opinion) see silver as only an Industrial metal and not a precious metal...so with a Fiat collapse there goes the demand...perhaps... Hey no Veteran here either,just my two cent's... If I didn't think the trend was to the positive direction wouldn't be invested.... I guess the topic is discussing the possible short term volatility...Long term is all up for me...I can wait...
What do you mean? When the economy tanks (China or whoever), the industrial demand for Silver will most likely tank because of less buying power along the chain. Less people will buy Silver based end products such as iPads, Laptops, Solar panels etc. Less people buying means companies may have excess stock on these products and since they locked their capital into these end products which aren't selling yet they will be unable to create more end products until these have cleared. This leads to a drop in demand from these companies for Silver because after all they have no need to buy any with a stock buildup like that. This comes around and burns us very hard because much of our economy depends on commodities. Anyway, this isn't just silver, it applies to iron, copper, tungsten, tin, nickel etc. Not sure if I'm answering the right question for you since I'm not sure what you're asking haha Yeah you're right if Chinese went out and all bought 1/4oz Silver they would totally dwarf us over here! However, how many Aussies do you know who would buy Silver with their savings? Not many I'd wager! Rather put it in the bank for 5% interest you say? Well that's what happens in China as well, term deposits and RE are the common norm for 'savings'. Not silver really. The rich might buy Gold but really I don't see a lot of Silver investment in China (compared to Gold!). Definitely not arguing with ya, good to have some discussion to see different view points If the Chinese were really buying up all the Silver for investment we would be seeing $100+/oz right now. The Chinese love speculating and cornering the markets, they did this for Corn, Garlic, Ginger, Salt, Chili lol. Probably moving onto the next big commodity like Sugar. If they did move into Silver yeah, prices would be amazingly high and completely different from the paper prices lol. Some sources, hard to find decent ones because they're all in Chinese... but these are English: Garlic Speculation: http://www.chinadaily.com.cn/china/2010-05/13/content_9846861.htm Sugar Speculation: http://www.chinadaily.com.cn/business/2010-10/19/content_11428114.htm (government response) Ginger Speculation: http://www.peppertrade.com.br/vernoticia08BIG09.php?idn=1760<font size= Salt Panic buy: http://dailycapitalist.com/2011/04/06/chinas-salt-bubble/ (Not exactly speculation but one can see what happens when the Chinese go crazy buying stuff) Corn Speculation: http://english.peopledaily.com.cn/90001/90778/90862/7112078.html Most don't give many official figures, that's how the Chinese government does things though but yeah speculation is rampant up in China.
Would be nice to hear Gumnit talking about increasing precious metals reserves, do we even have a reserve of Silver in Australia ? Footnote: I also hear Zimbabwe is talking about a new Gold standard currency to replace it's redundant one. They presently use the $USD as a trade currency but with some of the worlds largest unmined gold resources in the ground would surely be a smart thing.
F&*K! Ok just wrote a hefty response but crashed on the upload Sorry fishball you make some good arguments but receptively agree to disagree
Dynoman - don't know if OZ has any reserves but sure someone here could assist...Gumnit response? a gold standard for Zimbabwe would be great to see...a good mate of mine gave me a 50 Trillion Zimbabwe note recently which proudly is displayed on my desk... reminds me what Hyperinflation really means
@Fishball / Ag I see what you're saying. So (if you don't mind me asking) to what extent are you guys happy to wait before jumping in? Is 'conservative buying' the order of the day? Tricky game..
thehuckler - definitely not waiting - as you put it 'conservative buying' or dollar cost averaging is part of my plan. Been buying for sometime now and again heavily lately around $33(my guess the current low for awhile) For me the 'waiting' part is the payoff - or investment horizon - meaning how long I'm prepared to keep money on the table. Basically as long as it takes because I can see the end game. Sure its a tricky game...I think the term 'silver bull' means how it will try and buck / kick you off a position...hang on for the ride is about the only advise anyone can suggest... Anyway,welcome aboard! and never feel bad in asking a question...your input and opinion has equal right here to mine,fishball or anyone...
It's hard not to bite on these drops, but I am holding until the weekend at least. I think we will see the high 20s again.
I am buying now, sure it would be nice to get some below 30 but my wife heard on the radio this morning that silver had dropped 2.5%, when she starts telling me this sort of thing I find it hard to convince her to let me buy more. She doesn't seem to mind buying when it is going up though!
You need to do the stacking and your wife needs to do the cooking. Wouldn't that be a lot simpler :lol: PS: Not a bad price at the moment to buy some more AG
Short term it doesn't matter a jot what happens - remember a few weeks ago when we touched $28 everything was FLYING off the shelves... So fret not... Go on holiday - go fishing - make love on a sandy windswept beach - alone or with a friend... Keep your eyes on the horizon peeps - For it is SHINY... VRS x
Well said VRS Once we're fully invested, just sit and hold tight, ignore the distractions and look at the destination on the horizon.
That's a good point about flying off the shelves. If silver has topped, then why is the Perth Mint perpetually out of stock? They should be overstocked, especially with all those sellers dropping their silver off at the mint! There should be no delays in shipments, etc. Its been two weeks since I walked down to the mint and bought a bar and they said they'd call me when they got more in stock. I haven't got a call yet. Hard to argue with that.
