Discussion in 'Silver' started by adze67, Feb 21, 2021.
So, 419 people viewed this thread and yet only 17 bothered to vote, that just about sums this forum up perfectly.
Most like to come on here to get something out of the forum yet very few make an effort to contribute something themselves.
Oh well, at least 70% agree that silver is undervalued, so I guess that's better than nothing.
maybe should change the name to anythingbutsilverstacker.com.
No shyte Capt Obvious.
What answer did you expect when you asked that question on this forum?
You'll have to track down those 402 people then and put them on your "shyte list" - a list that long should be good for a few sessions on your thunder box. Oh and yeh, I have a question, do you put your head or your arse in it when you take a dump?
Lol, wonder who voted for the "barbarous relic"?
I confess, that was me. Always enjoy a giggle and someone had to show that option some love.
China announces MASSIVE oil & gas discovery in Bohai Sea
but would not last for long
I stand corrected alor, the Chinese do need oil for machine lubrication when producing counterfeit coins.
Oil is cheaper. Lots of metals and crops are cheaper, including the ones previously cited.
I'm not sure why you think things should be more expensive, or why silver should be more expensive. Why should any element or commodity be more expensive over time? Technological progress tends to make things cheaper. Look up the famous Simon-Ehrlich bet.
Silver isn't that important to most people, or to the world. Copper is far more important industrially and in everyday life. Nothing lasts forever, certainly not silver coins or what have you. A gold standard might be cool, if it was a private currency, not a government bank, but silver will never be a monetary metal.
It is technically overvalued now, considering people are paying premium when the mint is saying there is heaps of silver they just can’t press a face on 1oz fast enough.
A market like this should encourage more minting or casting but retail is a difficult industry to scale, so spot premium is the default reaction to increased demand
The only price index that I use now is the only one that is reliable:
The "Ozito angle grinder sale price at Bunnings" index.
Oh, I actually missed the poll part. Wasn't used to seeing it I guess, might have thought that graphic was an ad. I just voted now.
Ratios don't matter at all. Certainly not the mining ratio of silver to gold. That's just arbitrary number games, as arbitrary as the ratio of mined silver to mined titanium, or the ratio of mined silver to pounds of lean hogs slaughtered.
What matters is supply and demand. And costs, which interacts with supply and demand. There's some overlap in silver and gold mining where both metals come out of the same mine (or from copper mines), but that overlap varies from mine to mine, and the world's mine mix is dynamic, and there wouldn't be a useful ratio with this.
Yeah, it seems overpriced at retail. The premiums are ridiculous and I think it's a big mistake to pay them, i.e. to buy retail silver right now. You're unlikely to ever recover the premiums, good way to lose money.
When premiums are like this it's better to go with paper, allocated, etc. if you think silver will climb. That way you can actually profit on said climb, no premiums to eat. I made some money with OneGold last year.
Wile I feel silver is undervalued it's value seems connected to a true need industrially That market will compete against us as We hold ,
they disperse into products (we need) around 60 percent is used industrially . If economic slow downs occur .Our competition buys less
a 60 percent customer is real .
I see that no matter what as long as humans are modern industrious our silver has value $100 per ounce seems feasible But inflation
might change that value But our friend Silver is a Hedge of safety
I recon the limitation of the manufacture of the bullion is a suppressant to the investor demand.
You can't honestly believe that the total amount of silver in investors hands wouldn't have consumed more silver if it were available?
And if it were, there WOULD be less of it in the warehouses.
As a matter of joe ape-pack blowing $10,000 (regardless of quantity) with a premium of 5% vs 15% his silver hands would have had to carry more 'mass' away from the shop...
So its an intuitive reasoning.
The spot price is seemingly based counter to investor demand.
Demand goes up... Supply drys up, physical investable product premiums go up & spot goes down to make it look all "HUGE PREMIUMS" offsetting industries costs and industry buys more volume and all are happy.
Investor demand goes away, supply returns (probably stockpiles of it... as they'd probably fill up holding in a storehouse, in case of a final actual huge wave up and/or just to take advantage of the time...), spot goes up to meet spreads like its "on the rise" producers sell into public while industry waits...
industry then wants volume... spot drops to account for the volume required which is at a discount paid for by investors...
If it went out to joe ape-pack... he'd sell eventually and the investor market premiums on existing items would drop. industry would have to buy back coin and bar and melt which is a lot of work for satisfaction of a hyped fad.
They may be deliberately suppressing the eventuality of an anticipated boom-bust in the physical market by holding off mass-production and forcing investors to seek the metal in the secondary market - increasing premiums.
But I have not seen the 10,000 new stackers joining the forums yet, so my thoughts are its short lived.
And it's probably a cyclic thing...
I think we should consider Corvid - - As when the shut downs took place . The plummet took place .
I noticed the shock of the confusing DOWN was a reality that sellers like Provident & JMB here in the States responded
Spot went up to limit the loss . Unless you were in a finical death, Stackers were not selling.
Regardless of manipulation . the metals market responded in a short time to express
the validity of what we either Knew or wondered about . The stability of Gold & silver during times of disaster
is proven .
Numbers at wss on reddit have had good growth.
yes retail silver is over valued for sure. Premiums are stupid and as you said its a good way to lose money right now.
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