Isn't this message the same as the people like Max Keiser have been saying for over a year or so? I think some of those people that listened to Max, and jumped on board pre-May, got the sh*ts and sold when the drop happened, and they are more wary of jumping on board again. Me, well, I stayed on board for the ride. It's like being on a ride at Disneyland . . . . maybe it is all make believe after all?
I think you can't really trust to have an unbiased view on silver from a website called silver-info ... just sayin.
Just saying, US recession means large drop in silver because its a industrial metal. Its hardly a precious metal and from recent performances it does not act as a safe haven like gold. check out the CHF charts, even after Swiss central bank intervention they still can't push it down thats a safe haven. JPM lowered US growth from 1.5% today to 0.5% so that could have a impact on silver prices. Maybee shorting is the right way to play this?
With respect (and by the way, I do agree it doesn't offer as good a haven as Gold), but I must disagree on this statement. If Silver is not a precious metal, then neither is Gold. I base this simply on available supply - we have more gold than silver above ground. If you meant "Silver does not *behave* like a precious metal", then I apologise, and ultimately agree with you. At the moment, it does not - but I firmly believe the day will come where it will. When the ability to manipulate the price of silver is diminished, and when investors, and the rest of the world see and realise it's dual purpose (invest/industry), and then realise how very little of it we actually have, then you will see it act as a PM. Already there seems to be less ability for manipulation in the price - various factors may be causing this, such as new exchanges trading now etc. Silver should have been all over the shop in the past weeks, instead, I have seen a "holding of ground", no massive plummets in price as we would have seen in similar circumstances only months ago. This gives me confidence that the fortunes of this often misunderstood metal are changing, for the better.
Thanks for the reply, i believe the problem with silver is its high % of use being industrial. I do think the trend will be on the upside for now(at least until the recession deepens). What i see as being a problem with silver is the last 2 times 80's and recently when it almost hit $50 it was both due to rampant speculation. The $50 price in 1980 is used by experts to determine the gold/silver ratio but the price was heavily manipulated at the time and as of recent when the price hit just short(or right on i forgot) that was due to rampant speculation that was bound to end. I do agree with you that it has been holding ground the last week which is never bad. After last night's 5% or so gain i'm unsure if i should put that down to it being a precious metal or put it down to a slight market recovery where crude and allot of the food commodity's also rose(did silver just follow the market up? or was the 5% gain a premium over other commodity's being its precious metal status?) sugar performed very well as well doing 6.32% last night. It's something i will have to look at further i think.
Nukz, "The $50 price in 1980 is used by experts to determine the gold/silver ratio but the price was heavily manipulated at the time" Agree, the Hunt Bros ploy made it a completely false value, especially in comparison with the following years. Even now, the big banks playing silly buggers with short selling is messing up the market, but I think that will wash out when all those short contracts mature. OC
Well... Even if we face economic crisis the industry won't stop whatsoever. The demand will drop but... Since silver is a by-product in copper, aluminium etc. mining, with consumption of these dropping at times of economic headache, then the production output of silver will also consequently drop, thus making the supply tighter. Gold also has it's weak point - about half of it is being used for jewelry and guess what will people be saving on during the time of poverty? Yellow stuff exactly. Nowadays lots of jewelry in Europe is being made of silver, not gold. This tendency is spreading now. And one more point... As gold will reach 3000$/oz it will practically stop it's life as a jewelry material and everyone will turn to silver. 3000$ for the oz of gold is quite real given the current pace. At it's present prices gold is produced enough to be sold for the sum of just around 200bn$ yearly. 200bn$ is a really small amount for the world's financial institutions. China alone, quitting the US bonds of about 2trln$ can request to buy 10-year produced amount of gold in a single year. What shall happen then? Up to 10000$/oz! And that's not at all impossible. Gradually, as the price of gold will further skyrocket towards 3000$, the investors will strongly accept silver as an affordable alternative. And it's being produced in the world to be sold for just around US$40bln yearly at today's price per oz! So, in my opinion, we'll see silver up to 90's$ per oz in 2012. It's the low price of silver that now makes it not so interesting as an investment: to keep 1mln us$ in gold will just take a small space while keeping the same money in silver will stack you storehouse up to the neck . And you know what? I would like silver to stay low around 40 for some time further so that bright-minded families around the world could get some more eagles\koalas\pandas etc. at good prices to help themselves to go through the times of debts-triggered economic collapse which awaits us in future. Silver is good to have! I guess I don't want to go to the grocery shop carrying in my pocket a gold coin to buy their stuff with! Just my crazy ideas. Best of luck!
Way back in the olden days when i was but an impressionable youth, my science master told me that silver was usually found in conjunction with lead and zinc. Sometimes on its own, and sometimes with other metals, but not often. OC
Silver is partly an industrial metal, however I do not think it will correct much at all in another recession. Any lack of industrial demand will be an opportunity for investment demand to pick up at cheaper prices than otherwise possible. (i.e. the big boys to close shorts?)
When the SHTF, industrial demand may well go down, but 'silver stackers' around the world will more than make up for that. And has been pointed out, demand for gold jewellery will fall, and demand for silver jewellery will rise. OC
An X class solar flare may drive a new demand for silver to repair the damage done ... (insert casual whistling and walking away emotty here)
Supply will be impacted to some degree in a serious recession/depression as well so things are never simple. The vast majority of silver mined in Australia comes from two mines that also mine lead and zinc from memory. If base metals tank they will most likely reduce output if they fall far enough for long enough.
so i bought the first ever perfume yesterday by Chloe, as i open and read the small card inside, apparently silver is also used to make the bottle. at that instant, i am happy that all of us are stacking silver
This is a interesting point, last recession in 07/08 we saw a steep decline in silver and gold but this time around i suspect we may not see such a sell-off at least in gold. The real test will be if we see a sell-off in silver, if we don't see a huge sell-off in silver(we could use possibly the past 2 weeks as a example) then maybee silver is really being seen as a investor safe haven.
