I own silver as well and in the long term i certainly see a good future but there has to be corrections somewhere along the line i believe silver has done 30% in the last month alone. I'm not at all suggesting a 130% correction, good heavens no. I know all the storys about the gold/silver ratio's and what they have been in the past but don't expect to get to those ratio's overnight. I own physical metal but i also trade CFD's and when silver hit 49.80 or so and didn't take out its previous 1980 high i was certain this would happen, now we have a small correction and we again will attempt to break through the $50 mark(I suspect we will the second time) and then i would expect quite a fast run to 60.
That's cos most of those who are "worried" are just traders or speculators... some are just plain dumb Those invested in physical for the fundamentals and the long term should not even wince ... One of these fine days, the price of physical will simply decouple from the "spot" price... and those playing paper silver will be sitting with their d!ck in their hands! Someday we may not even be able to buy physical at all...
We are not at Charlie Sheen stage There is a still a reason to keep some powder dry The trouble is waiting 3 months or more for delivery...all sorts of thoughts can seize the day - what if there is force majeure (I get stiffed)? Yes, there was a serious pump and dump in 2008. At the risk of saying it, this time is different. If only due to awareness. A lot of awareness, called China and India. Both countries historically love their PM. China was banned from personal ownership at the peon level until last decade with gold and just a few years in the case of silver. These guys LOVE their PMs - give them a chance and they will scoop as much as they can. In a way it sours my thought with cynicism, as if that was the intention all along. Even still, it will be one hell of a ride up. The question is, what's the end point of the currency war and what are the strategic ways to separate holders from their purchasing power? How to regain liberty without slaughter - that's a key, at the level of 2+ billion peeps. It's a serious flock.
There are companies out there that have increased 3 fold in their share prices, without the media even talking about them over the years. Silver has been on a bit of a run lately with the AUD dollar gaining in strength, IMO I believe it is still early days, as the price goes higher I think there will be more fluctuations larger than what we have seen already. As a small stacker I need to hold onto any silver I buy for at least 12 months to decrease my CGT. I do not think I am the only one who feels this way and with reports that there are still months waiting to buy silver I certainly do not think people should freak out. If Silver does go to say $90 and drops $10, that is going to test a stackers metal on whether they offload or not. One of the first pieces of info I read prior to stacking was that the price of Gold and Dow Jones has had a history of being 1:1 or 1:2, this is no where near this level. If the gold/silver ratio stays in the 30's and Gold rises to meet the Dow jones, even (in USD) I will be happy to look at selling. Until then, keep stacking.....
