I really hope all this price movement isn't only purely caused by speculators trying to make a quick buck or weak hands, but I have a feeling this is why the POS in skyrocketing. I wouldn't be too pleased if the POS crashed back down below my DCA. Anyways I shall just ride the wave, I bought some maples today @ $48, looks like the coins might increase in value sooner than I thought.
I find it kind of confusing, because when we look at the charts what we are seeing is not the price of silver, but the pice of paper stocks. For every speculator buying silver, many more are buying paper that represents silver. Even if the paper price crashed, I wonder if the day is coming that even if the paper price went to US$20.00, you wouldn't have a chance of buying physical metal for anywhere near that low? In fact i suspect that that day has already arrived. I think that the days of the physical price matching the spot price on the downside past around $20.00 are pretty much over. Mind you this is just the uneducated guess of a guy on a forum, I would like to know what others think about this issue.
Jonesy, I think you are pretty much spot on. Regardless of 'paper prices' and what they may or may not sink to one day, people are not going to part with their physical silver for naff all. Physical is a whole different ballgame.
I wonder what the demand of physical would be like amongst people who aren't "crazy stackers" like us if the POS crashed to $20
Yes it is interesting to see. At work a colleague told me yesterday he is in the process of buying paper silver "to hold for the long term". He seemed miffed I did not share his enthusiasm. I told him I fear for his soul, physical would be better and not necessarily for ever. I don't feel I convinced him at all.
If gold (and presumably silver too) is the money and store of value to the elite, then in the end game both metals will have a high value. The PTB have already dragged the prices low for a long time in order to stock up, I suspect now that they will let it off the leash and enjoy their gains.
Nothing wrong with paper silver or an ETF. Example you can buy ASX:ETPMAG and set a stop loss that trails it by 5 or 10% so if the market goes to the poo you minimise your losses. This can be a convenient vehicle for some who have an investment company or SMSF.
If there is a buyer. But possibly more buyers there than trying to sell physical when its fast going down.
