Dive in Silver Price a "Setup," Says Sprott

i dont understand how these guys can expect silver to return to 1/16 the price of gold. in the article he says the charts tell you it will return to that......but im not sure how so? i dont think the price of gold and silver has been 1/16 ratio after 1900 and the 1/16 ratio was set artificially not by the market. so how does this all add up?

overall this article is very misleading i believe, it also says the physical demand for silver, has changed massively. from all data i've seen this is competely untrue, its being going up, but nowhere near what should be considered massive.
 
Not that i'm a technical wizard but i don't believe the 1/16th comments. I just ignore those. I agree with your artifical pricing comments. With the increased industrial demand i'm guessing that it will vary along according to demand much like copper only a little more volatile due to the investment component.


..just reread what i wrote - "the price will vary according to demand" - now there is a groundbreaking statement :P
 
Problem with all these ratio's and predictions is if economic growth is slowing down in India and China(which is shown in the data) along with the huge percentage of the metals use that is industrial this can't be good.
 
Nukz said:
Problem with all these ratio's and predictions is if economic growth is slowing down in India and China(which is shown in the data) along with the huge percentage of the metals use that is industrial this can't be good.
Click to expand...

I'm with you Nukz - if we go into an economic meltdown, industrial demand for ag will tank this must take some of the momentum out of the metal. On this basis I prefer to stick to gold - always revered, never intentionally destroyed.........and a damn sight easier to store ;)
 
Yesterday i read in China newspaper that they change goal for new solar plants from 5GW up to 10 GW until 2015, so in the basic these means that they doubled demand for industrial use for solar panels, and we think similar effect we can expect worldwide Germany, Italy.... after Fukushima accident.
 
TinPotWizard said:
i dont understand how these guys can expect silver to return to 1/16 the price of gold. in the article he says the charts tell you it will return to that......but im not sure how so? i dont think the price of gold and silver has been 1/16 ratio after 1900 and the 1/16 ratio was set artificially not by the market. so how does this all add up?

overall this article is very misleading i believe, it also says the physical demand for silver, has changed massively. from all data i've seen this is competely untrue, its being going up, but nowhere near what should be considered massive.
Click to expand...

I believe that the 'artificial' setting of the silver price is what has occured after 1900 ...
and that the natural market forces is what has determined the gold/silver ratio for thousands of years before that.
 
Nukz said:
Problem with all these ratio's and predictions is if economic growth is slowing down in India and China(which is shown in the data) along with the huge percentage of the metals use that is industrial this can't be good.
Click to expand...

That wont compensate for the hundreds of millions of people in India and China who see silver as real money and a store of wealth - safe from the effects of thieving central banks and governments.

I always love some of the arguments raised in this place about silver's future value potential. Just because governments and central banks have manipulated the price of silver for the past 100 years downwards does not mean that silver really is as lowly ito value as it was made out to be.

These same people seem to believe that governments and central banks can continue on their path of pulling levers and pressing buttons to micromanage the economies of the world and dicate to people (over the market) what the value of gold and silver should be...

Good luck to you's all.... let's wait and see how well that works out for ya
 
Mi lao shu said:
Yesterday i read in China newspaper that they change goal for new solar plants from 5GW up to 10 GW until 2015, so in the basic these means that they doubled demand for industrial use for solar panels, and we think similar effect we can expect worldwide Germany, Italy.... after Fukushima accident.
Click to expand...


SHHhhhh ... silver's going down down down ... and stayin' down! :lol:
 
Yippe-Ki-Ya said:
Nukz said:
Problem with all these ratio's and predictions is if economic growth is slowing down in India and China(which is shown in the data) along with the huge percentage of the metals use that is industrial this can't be good.
Click to expand...

That wont compensate for the hundreds of millions of people in India and China who see silver as real money and a store of wealth - safe from the effects of thieving central banks and governments.

I always love some of the arguments raised in this place about silver's future value potential. Just because governments and central banks have manipulated the price of silver for the past 100 years downwards does not mean that silver really is as lowly ito value as it was made out to be.

These same people seem to believe that governments and central banks can continue on their path of pulling levers and pressing buttons to micromanage the economies of the world and dicate to people (over the market) what the value of gold and silver should be...

Good luck to you's all.... let's wait and see how well that works out for ya
Click to expand...

How on earth can you manipuate the price of something downward for 100 years...?

I think your simply talking about mining a commodity and selling it by that point!
 
Yippe-Ki-Ya said:
That wont compensate for the hundreds of millions of people in India and China who see silver as real money and a store of wealth - safe from the effects of thieving central banks and governments.

I always love some of the arguments raised in this place about silver's future value potential. Just because governments and central banks have manipulated the price of silver for the past 100 years downwards does not mean that silver really is as lowly ito value as it was made out to be.

These same people seem to believe that governments and central banks can continue on their path of pulling levers and pressing buttons to micromanage the economies of the world and dicate to people (over the market) what the value of gold and silver should be...

Good luck to you's all.... let's wait and see how well that works out for ya
Click to expand...

How can these sentences go together???? How can silver be a store of wealth safe from the effects of central banks and governements when in the next sentence you state that these same entities manipulate the price down? This doesn't make any sense.

You'll also see if you look back that the US government manipulated the price of silver upwards during the 1890s (Sherman Silver Purchases Act) and again from the mid 1930s until the late 1960s (Silver Purchase Act 1934). Both of these acts were eventually repealed due to their disasterous effect on the US economy and it's reserves.

malachii
 
grinners said:
Yippe-Ki-Ya said:
Nukz said:
Problem with all these ratio's and predictions is if economic growth is slowing down in India and China(which is shown in the data) along with the huge percentage of the metals use that is industrial this can't be good.
Click to expand...

That wont compensate for the hundreds of millions of people in India and China who see silver as real money and a store of wealth - safe from the effects of thieving central banks and governments.

I always love some of the arguments raised in this place about silver's future value potential. Just because governments and central banks have manipulated the price of silver for the past 100 years downwards does not mean that silver really is as lowly ito value as it was made out to be.

These same people seem to believe that governments and central banks can continue on their path of pulling levers and pressing buttons to micromanage the economies of the world and dicate to people (over the market) what the value of gold and silver should be...

Good luck to you's all.... let's wait and see how well that works out for ya
Click to expand...

How on earth can you manipuate the price of something downward for 100 years...?

I think your simply talking about mining a commodity and selling it by that point!
Click to expand...


this ratio throughout time is between 2 and 110, plus and minus , occasional extreme can be during war time fleeing, when you want to swap heavy bulky silver for gold but the guy who stay behind holding silver and live, he will be VERY rich!
so long as the ratio is within this range, there is ALL logic that that will happen ALL the time, this is NO BLACK SWAN.

this is VERY obvious, why you guys can not come to believe this probability.

the things call demand and supply arguments are Crabs, you have been deceived!!!

if we saw the ratios moving from one end to the other, we just look at the direction of the move. just like recent past it was 83 moving to 30, now we moving up to 43.

THIS IS GOOD OPPORTUNITY, if you think 30 is low, then take out your silver and change to gold, and if you believe that 43 is a good enough price for your gold then change it to silver, the difference you can keep as your increase. MORE IS BETTER.

if you started 1oz gold and change to 70 silver and change your silver, 30 for gold then get 2oz gold + silver 10, then change back at 43 = end up with 96 silver. what an increase! if you live that long and know how.:D
 
Don't think silver has been at 16:1 since the industrial revolution.

The "Long Boom" which lasted from 1945 to 1973 and now has essentially been followed by "Long Boom 2" (1975-2007) means we are in the beginning of a new economic turning point.

The UK dominated the world economy from say 1800 - 1914, then came war, roaring 20's, depression and war which was followed in 1945 by the rise of US world economic and military supremacy.

It has always been the case in modern world history (say the past 5,000 years) that the strongest military power has also been the strongest economic power.

Egyptian Empire, Holy Roman Empire, Rule Britannia, US Hegemony..... although the US economy is in deep doo-doo and the economic system there is being held together by fiat sticky-tape, without the emergence of a new rival military superpower, history would tell us that the US will remain top dog in economic terms.
 
ECONOMIC power is more relevant today, if US moved all their money into China, then the financial center will follow to China. military, the military can be station everywhere. we are in a one world order, new world government. :-)
 
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