billybob888 said:
I do agree with those who think inflation is understated, hence yes silver might have fallen slightly in real terms(but I dont have to data to validate that), but thats a positive,
I don't understand how that could be a positive...
*well cos that means silver is under valued if it has been falling in real terms
billybob888 said:
you should never buy things that are making historical highs (bubbles)
Exactly! There is nothing wrong in investing in silver, but since it is not income producing (unlike a flat for example) you need to buy it at a cheap price for it make sense. Now it's still 3 times the historic average. Far to expensive in my opinion. But wait until it drops to 8-9$ and then it makes sense.
*would love to c silver going down to that price but no sure if its possible. also Im not sure about the historical average as I certainly have no confidence in official inflation numbers- hence the average price adjusted for inflation may not be accurate. when you look at gold silver ratio, silver to dow ratio and silver to house price ratio, silver is not at multiples of its historical average and instead trading at a discount.
billybob888 said:
You argue silver is a terrible investment despite its growing industrial applications, increased investment demand and increased production costs.
No, it's not a terrible investment. Only at present prices. When prices drop it's a good investment to diversify (and for fun).
*guess only time will tell
billybob888 said:
Now I dont want to say that you are wrong, but I personally have only heard the positives of investing in silver.
That's because you have only heard the positives, because you only listen to silver bugs. Most people who are not silver bugs wouldn't come here to post, because they hang out in other places. Some people here also might have an agenda, to push the prices high (as Pirocco). The thing is that if you really like silver, and are in for the long-term, why not hope for a price drop? If it drops to $10/oz, you can buy double as much!!
*hope/wishful thinking doesnt necessarily becomes reality, I sure hope silver goes to 20cent per ounce so I can build a house with it.
billybob888 said:
would love to hear your argument for lower silver prices, so far you only mentioned historical silver prices which may or may not be accurate depending on the "real inflation" as opposed to official numbers. do you have any other fundamental reasons?
Yes, they might (and are like to) even be lower. No, no other reason for expecting prices to drop. I yet have to hear a decent reason as to why prices shouldn't drop to the historic average. Industrial uses have probably dropped because there is much less demand from the film industry.
*Well check record sales in ASE, Maples and from perth mint, electronic and medical uses for silver has been on the rise. also, India and China (huge population) are now able to access silver and gold investments whereas 20-30 years ago they weren't allowed to and/or cant afford it. china has been openly encouraging its citizens to purchase gold and silver, they have been moving away from the dollar standard and have been creating bilateral trade agreements with their major trading partners.
USD is doomed to loose its reserve currency status.
billybob888 said:
And since you are absolute certain about $14 silver, do you hold a massive short position on silver? as that would make u a crap load of money when silver goes down to 14 especially with leverage.
I haven't because I have no idea how to do that. Also, $14/oz might be next year. Can I make a short position with a one-year deadline? How much would that cost?
