Anybody know much about the word going around that JP Morgan buying roughly 350 million ounces of physical silver last April??? http://www.goldcore.com/us/gold-blog/jp-morgan-cornering-silver-bullion-market/
Lots of good arguments above on all sides. While it's true that silver (to the best of our knowledge) is not being stacked by Central banks, I think that the Chinese people and investors are stacking silver as well as gold. And while it may be true that gold is seen as more of a security asset than silver, silver and gold spot have always moved (generally) together with only a few significant exceptions that didn't last too long. Many people who invest their money into physical silver as opposed to physical gold are probably not able to afford much gold but that doesn't necessarily mean that investing one's money into physical silver exclusively doesn't serve the stacker as much of a sense of security than if invested in gold (of the same value - not the same ounces). That's because the GSR can drop substantially as well. I just don't see it dropping to the 1:15 ratio that some silver bugs claim it will....I think that's rubbish. 1:30? Sure, that's realistically possible in my view. I see James' argument as the most plausible. Most people are actually poor or getting poorer. If they were to seek a precious metal as a safe haven, if the GSR is high or goes even higher (which it probably will for some period of time), then they might not be able to afford much more than a few grams of gold. Besides, people may realize that what goes up will come down and gold (as opposed to silver) may be a worse way to invest what limited money they have because when the GSR comes back down they will have less value in the few grams of gold they purchased than were they to invest that money into buying silver. Opportunity costs equate to real losses of capital. . .
This is an interesting link, public opinion is a great resource especially when we have such an open forum and most have put some money where their mouth is. It seems some stack to work on the incremental rise and falls of different stocks, sort of like flipping, some seem to stack , many seem to stack as a form of retaining the value of their wealth. Probably lots of other reasons I don,t understand. I often think of Bob Dylans words, along the lines of, " you don't need a weatherman to tell you which way the winds blowing"? You can go outside and feel the wind and see the direction, storms may be coming and we can see, hear signs of coming storms, maybe howling wind, rapid cloud movement, dark clouds and thunder rumblings. Well in the same way, the experts can tell us the gsr over years, the price of different metals or maybe stocks but it can be very hard to assertain what the overall effects might be , of the storm of value movements to our wealth, security etc. We can study the big movements thru history of wealth , metals etc, we can learn from history, but each scenario is slightly different. Today we seem to be living in an almost unprecedented time. We can sense their are huge world changes coming, not nessacarily for the worst, but definately change. Some denominators in our reasonings are surely, The financial collapse we saw several years ago, The printing of more and more paper money, The huge challenge to the petro dollar by the east, The huge mounting up of gold and silver in the east, The east,brics is it? nations looking to return to a gold standard, The challenge of,is the a housing value correction coming, The idea of on the short term the Us dollar value increased compared to us in the land down under. Also it appears inevidable that there has to be a currency correction world wide, at least in my simple view. Crisis is also an oppurtunity, not hopefully at others expense but if prudent we can ride out the storms, I guess not just putting all our eggs in one basket, and hopefully not just saying, Im ok Jack and the rest can go to hell.. Our stack could crumble any day I suppose. We lays our bets and takes our chances, I suppose, we have to know when to hold em, when to fold em ,when to walk away, know when to run........ etc Ha ha, you never count your money, while your sitting at the table, there'll be time enough for counting, when the dealings done, Keny Rogers , "the gambler" Here's another favorite song of mine, , https://www.youtube.com/watch?v=QrY27hRGlyA
At a GSR of 80 I like silver better. At a GSR of 30 I like gold better. I hope one day to make my silver turn into gold at a GSR of 30 or lower. We got to GSR of 32 or so in 2011 at the peak of silver. Due to a lack of patience I would probably start the process once we broke below GSR of 40, but only a little bit of the stuff I like the least or regretted buying in the first place. I will keep a third of my silver stash and not sell/trade until a GSR of 15 or less, if that ever happened. Jim
Do you see banks stacking gold as a security? I don't. They sell it low and buy it high. Their motivation is obvious. If speculators try to buy gold to escape their fiatbased theft, they buy too, drive the gold price up at a doubled rate, and speculators receive less ounces. And when speculators try to sell gold as a final phase in aboves attempt, they sell too, drive the gold price down at a doubled rate, and speculators receive less fiat. Not that I see any product as a secure thing. If one buys gold at $2000 and has to sell it at $1000 then he lost half his $. If a government confiscates/"insures $100000 of a $200000 bank account then half the $ are lost too. It's not the product choice that determines how "secure" a swap is, it's the prices at which it is traded. The success determinator is not the metal choice but the traders behaviour.
So this really only affects gold traders because stackers buy and sell such small amounts of gold and from dealers not the market. banks wouldnt even notice stacker trades of sell high buy low. Stacker wins
Do you mean that a "banks" 100 oz bar drops in price and a "stackers" gold coin not? And, "such small amounts"? Coins & Bars (tonnes) 1997 452 1998 261 1999 359 2000 166 2001 357 2002 339 2003 292 2004 339 2005 386 2006 401 2007 432 2008 862 2009 743 2010 995 2011 1486.7 2012 1347.3 (bar 1039.1 officialcoin 194.7 medals+imitationcoin 113.4) 2013 1766.1 > 1765.4 (bar 1385 officialcoin 276.6 medals+imitationcoin 103.8) 2013 1702.0 (bar 1335.8 officialcoin 266.3 medals+imitationcoin 99.9) 2013 1700.8 (bar 1334.8 officialcoin 266.1 medams+imitationcoin 99.8) 2014 1063.6 (bar 807.8 officialcoin 178.5 medals+imitationcoin 77.4) 2014 1004.4 (bar 726.0 officialcoin 204.6 medals+imitationcoin 73.8) 2014 1004.4 (bar 727.7 officialcoin 204.6 medals+imitationcoin 74.0) 2014 1002.2 (bar 725.4 officialcoin 204.5 medals+imitationcoin 72.2) 2014 1000.5 (bar 725.2 officialcoin 203 medals+imitationcoin 72.2) 2015 1011.7 Central banks: 1997 326 $330.98 1998 363 $294.24 1999 477 $278.88 2000 479 $279.11 2001 520 $271.04 2002 547 $309.73 2003 620 $363.38 2004 479 $409.72 2005 663 $444.74 2006 365 $603.46 2007 484 $695.39 2008 235 $871.96 2009 34 $972.35 >>> 5592 tonnes gold sold over the period 1997-2009 2010 -77 $1224.53 2011 -455 $1571.52 2012 -544.1 $1668.98 2013 -386.6(2014Q1) > -409.3(2014Q2) > -625.5 (2015Q1) $1411.23 2014 -477.2(2014Q4) > -588.0(2015Q1) > -590.5 (2015Q2) > 583.9 (2015Q4) $1211.71 2015 -425.8(Q1-3) > -588.4 (2015Q4) ... as one can see, central bank purchases / sales are not your suggested magnitude different.
No! what I mean is stacker's do not buy and sell as a collective! they individually buy when low sell when high if they sell at all and usually on a secondary market with small amounts! So no bank would start to sell low and buy high to manipulate stackers buy sell rate it would be to manipulate gold traders buy sell rate! Stacker may well get caught up in this banks gold manipulation but stackers have a choice and time on their side, gold traders do not. when a bank sells low to lower the price because of gold dumpers (the scenario given) stackers then buy low. when the bank buys high to keep prices high and stop the traders from buying and making a proffit stackers just go watch youtube.
Pirocco, What the heck is "medals+imitationcoin"? Must be a strange translation of sorts. "Imitation" is defined as "replica" which means "fake" when discussing physical precious metals products. I'm assuming that "imitationcoin" is not intended to mean "fake gold coin". Also, you have 5 successive entries for 2014.....why 5 entries? .
Interesting wobble in the silver price and the Aud happening, the GSR has certainly responded. If this is getting anyone down in anticipation of a consistent climb in Ag, wonder where Friday will leave us this week. Will gain some weight and put on another kilo if we end up low methinks. Here's a funny to cheer you up, Paddy walks into his local watering hole with a steering wheel down the front of his pants, the barman remarks " Paddy d'yer not know you've got a steering wheel down the front of yer pants" Paddy exclaims. " Arr yes, it's driving me nuts"
