the POS is blasting its way upward like a saturn 5 rocket, I've never eaten so much cake in such a short period of time; looks like I'm going to be hitting the gym. On a serious note, this price movement seems almost parabolic to me, it has a me a little worried but then again I wouldn't be phased is the POS went back down to the mid $30's. It just seems like this is happening so fast, I guess all I can do is sit back and watch the show.
It's a bastard actually, those of us without a strong physical position would rather see a gradual increase instead of a market frenzy. Well, they've been telling us it was going to happen soon & I guess it is now. $100 for Christmas?
I was counting on the frenzy to hold off for about a year so I could accumulate more silver, I only started stacking in December 2010 but if the market wills it then I must go along with it
I think we are about half way to the top. The price of silver 2years ago on a GSR was over 75 to 1. Now at the moment it's around 36 to 1. When it gets below 20 and heading for 15 to 1, then I think thats it. From that point on it will track gold at 15 to 1. A lot of stackers think that because of the increased use of silver for commercial purposes that the price of silver may well go below 15 to 1. Only time will tell. The price of PMs may well go up sharply if fiat currencies continue to drop but thats another story. Regards Errol43
Well if you think about it the Hunt Bros pretty much boosted the price to $50 in the 80's (I'm guessing that over $100 in today's dollars), that was only 2 people. There is a lot more money floating around these days and a lot more big buyers that can influence the market even more so than the Hunt Bros. And there are all the little guys like us that will drive the physical price up even more.
The Hunts were to speculators who pushed the price to unrealisitic levels. This time it seems to me that fundamentals are better but the main push is the monetisation of silver in people's minds in the face of inflation fears and world unrest. A couple of million Chinese people buying ounces when they can is going to have a big effect for instance. I think the PTB will not allow gold to go over 5k and silver to go to 100 - they stopped the Hunts with new rules and they'll do the same this time. I'm for working out an exit strategy and I'd be interested in others' thoughts on what, when and where.
The thing that I fell is different this time around is that the industrial demand is pretty big and there isn't as much silver stockpiled as there was in the 80's. If the there is that alleged shortage of 1000oz industrial bars then a few million little guys who take off a bunch of physical off the market could probably keep the price around $100, but that's just my guess.
For the price to drop like a rock, there needs to be an oversupply of physical to drive down the price. So much so that there is more supply then demand, basically this means enough supply so that all us little guys and back the truck at our price and be satisfied with still more available to be sold. I'm just not sure where this oversupply will come from, unless its been stashed away somewhere. That oversupply might mean at least a years annual production or more. Even then a few billionaires in China can scoop up the whole lot. At the moment the price is represented as the paper price, nothing will be certain until that implodes. I'm sitting tight and letting it all unfold. If it drops $20, I couldn't give a rats. I'll continue to DCA in. Slam
