Lower industrial demand, lower silver price?
- Thread starter TreasureHunter
- Start date
I do not see any high drop of trading in food, steel & mineral commodities so far even there are existing control in any government. Being realistic to day to day life, in supermarket prices, they are spirally just up-ticking. Gold and Silver are manipulated, till when? Nobody knows. For industrial demand, one thing for sure, this is not in our lifetime so why bother?
No, physical is just a play on the price of silver which will go up once people realise that there is such a thing as digital gold or silver. Everyone knows about bitcoin but few know what is digital gold.
I got into gold and silver because of bitcoin, and because I don’t believe governments will eventually allow corporations to create their own currency in any form be it open source or decentralized. When the day comes, the only crypto that will survive are token stablecoins backed by actual commodity and government currencies. Even these will be highly regulated and no different from banks.
Why physical and not paper? It’s becusse I don’t know how long this will take and in the meantime silver can drop further and if I buy paper, I may freak out and sell off everything in a spur of a moment, which I actually did in 2008 when silver plunged.
For years people trusted gold and silver government notes, and continue to trust government bonds. Like all things government issued though, all it takes is for them to change the rules in their favour I.e revoke the standards.
The only constant that will remain will be physical metals. If you hold it, it can't be removed from your ownership as easily.
For sure if we return to a metal standard, it will be illegal for Joe blow to redeem his notes or digits for metals. This will only be allowed for the big players like Central banks and governments. But whatever Joe blow managed to hide from government seizure will make a useful medium of trade between his buddies.
TreasureHunter
Well-Known Member
Silver-backed crypto? Why would they make anything silver-backed? (I'm not saying not, I just believe the return to some sort of gold standard is more likely).
Talking about cheap Soya, this really gets on my nerves. We have been breathing in toxic gas almost every year because Indonesia burns forests to grow oil palm because soya oil is sent to China.
Some comparison:
Melbourne and Adelaide is good, Singapore nevrer gets single digit pollution index. Even in the best months, it's 50-80.
Even beijing is better. That's why i say don't believe what the MSM writes. The truth is not the same.
And this is only the begining, the air pollution index can potentially rise above 400-500 in the worst case.
TreasureHunter
Well-Known Member
And there's also graphene and overall industrial production going down. All this will hurt silver.
Gold should be the primary focus, but it doesn't hurt having some silver. You can put 80-90% of your PM's into gold and you can still stack a lot of silver besides that.
The future is unpredictable. Back in 2012-2014 there was still a lot of madness (propaganda) for why you should invest in silver because of the industrial demand.
Now contrary information/news is propagating.
Think of it like this: it's always someone's interest to say one way or the other. Perhaps someone's trying to push silver's price down?
How about this: stack silver and one day if it becomes a lot cheaper, then you can turn to a caftsman to make you silver objects for your home
Silver drinking cups or just decoration or silver-alloy door-handles etc. Silver-this, silver-that... how wonderful it would be to surround yourself with so much silver
And it's healthy too (anti-bacterial effects)!
JOHNLGALT
Well-Known Member
I've bought and sold things using gold and silver, mostly between fellow miners. It's better than fiat to people that understand real money no problem.
Future speculation on industrial demand is a waste of time because it carries it's own values on the open market.
Central banks and govts arent hoarding PMS because of solar panels believe me.
Future speculation on industrial demand is a waste of time because it carries it's own values on the open market.
Central banks and govts arent hoarding PMS because of solar panels believe me.
Early this year, I've projected gold price will go up because of Chinese and Asian buying due to the fear of currency devaluation, but this buying can only sustain if Asian countries allows gold imports without import taxes which is actually the case for most Asian countries except Japan and India.
At the end of the day, dollars is needed to import gold. The trade war reduces the supply of dollars and if the situation does not change and, if the US dollar remains strong, this buying of gold maybe curbed. The Chinese, can of course buy silver, but unlike gold, silver attracts a 17% VAT. But if gold gets curbed or taxed, silver will get more attention as was the case of India. Once taxes are imposed, the buying will plunge. Even a 5% tax will pose a big problem, reduce demand by 50%. A 17% full VAT will reduce demand by 99%. At 17%, people will rather buy silver.
What I'm trying to say is that while silver has industrial demand risk, gold is not as risk free as it appears to be.
At the end of the day, dollars is needed to import gold. The trade war reduces the supply of dollars and if the situation does not change and, if the US dollar remains strong, this buying of gold maybe curbed. The Chinese, can of course buy silver, but unlike gold, silver attracts a 17% VAT. But if gold gets curbed or taxed, silver will get more attention as was the case of India. Once taxes are imposed, the buying will plunge. Even a 5% tax will pose a big problem, reduce demand by 50%. A 17% full VAT will reduce demand by 99%. At 17%, people will rather buy silver.
What I'm trying to say is that while silver has industrial demand risk, gold is not as risk free as it appears to be.
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JOHNLGALT
Well-Known Member
"What I'm trying to say is that while silver has industrial demand risk, gold is not as risk free as it appears to be."
If you want to talk about risk, try asking anyone about the risks of paper currencies who lived through the Wiemar Germany hyperinflation, or Venezuela, Argentina, or the Zimbabwean episodes. Anyone who is worried about being taxed to get out of fiat paper & into REAL MONEY just doesn't get it. Losing 50% of nothing to acquire 100% of something is a no-brainer. RANT OFF _JLG.
If you want to talk about risk, try asking anyone about the risks of paper currencies who lived through the Wiemar Germany hyperinflation, or Venezuela, Argentina, or the Zimbabwean episodes. Anyone who is worried about being taxed to get out of fiat paper & into REAL MONEY just doesn't get it. Losing 50% of nothing to acquire 100% of something is a no-brainer. RANT OFF _JLG.
It will only curb the governments numbers of reported legal buying of gold.
The black market will be making money hand over fist.
There will always be a black market that thrives if there is demand, which there will be. It wont stop anything.
Same as the marijuana laws in the United states.
Think of how many 100s of billions of dollars the us govt has missed out on over the years by making it illegal.
And we let those same retards run our economy.
The black market will be making money hand over fist.
There will always be a black market that thrives if there is demand, which there will be. It wont stop anything.
Same as the marijuana laws in the United states.
Think of how many 100s of billions of dollars the us govt has missed out on over the years by making it illegal.
And we let those same retards run our economy.