Silver - value to Oz investors

SliderC

SliderC

Active Member
Curious, the value of silver is specific to the value of the US dollar? I can see how to americans, silver would be a great investment due to the devaluation of their dollar however, assuming an inflationary economy in the US, to an Aussie, won't that mean our dollar simply buys more US dollars?

My point is, say the US dollar goes under and silver goes to $100 US an ounce, what if $100 Us dollars only buys $30 Aus dollars? Due to he devaluation of US currency? Won't that mean we aren't really making any gains to our investment?

In summary, if the US spot price goes up due to devaluation, is that really going to help international investors?
 
Mike Maloney says that of all the currency ever printed 75% of it are U.S dollars. So in a hyperinflation all those $$$ are going to try and land on gold and silver as people try and preserve their wealth and buying power. Unfortunately there is not going to be enough gold and silver to go around even at todays prices so it go back to the old supply and demand trick ;)
It will drive up prices world wide as people in the U.S will pay almost anything to get their hands on PM's so then I suspect supply will have to come from other countries, but will we sell and at what price do we sell???

That is the million dollar question.


SS77
 
Curious, my point is, what if, in summary.

Inflation is effecting all the reserve bank countries of the west.. Can you not see the thumbscrews being applied to the Australian Economy which is already on the rack.. talk of another certain interest rate drop.

silver is the answer to fiat currency.. not specific to the US at all. They just think they are immune and are oblivious to the cliff they are in a suspended animation off so we can observe and comment on the US$ with more certainty and in a medium term time frame, although i personally beleive we are being systemactically devalued in unison many think the US debt crisis or default will trigger a worldwide economic crisis, either way with our big four banks and central bank monetary swaps will likely wipeout much of the Australian financial sector also.

1for1
 
SliderC said:
Curious, the value of silver is specific to the value of the US dollar? I can see how to americans, silver would be a great investment due to the devaluation of their dollar however, assuming an inflationary economy in the US, to an Aussie, won't that mean our dollar simply buys more US dollars?

My point is, say the US dollar goes under and silver goes to $100 US an ounce, what if $100 Us dollars only buys $30 Aus dollars? Due to he devaluation of US currency? Won't that mean we aren't really making any gains to our investment?

In summary, if the US spot price goes up due to devaluation, is that really going to help international investors?
Click to expand...
domino effect..
US makes thier dollar look attractive for other countries to invest...if thier dollar crashes we will follow suit.
 
silver is money, the minute you understand it, is the minute you never consider it an investment again.
 
The USD may be the king of all fiat currencies, but every other currency is debt based and just as bad if not worse. I think your expectation that the AUD will be well regarded when the USD crashes and burns is mistaken and there is no reason to think that it would be. In fact, if 2008 taught Aussie savers and investors anything it is that when the SHTF in the US financial system, the AUD and the Aussie markets will get smashed.

If the RBA wanted to give the AUD some real value to see it ride high on the wake of the USD demise, it would be converting its paper debt based assets to increase its Gold reserves and compete with China. Instead, the RBA will go down with the FED, the AUD will most likely collapse as the financialised banks implode on their foreign loan books, impoverishing the nation to the point of not being able to support its debt load and a golden Yuan will have unstoppable purchasing power.
 
When silver is at a $100 an ounce, Australia's small stash of gold and silver reserves will do nothing to give our currency any worth.
 
Plenty in the ground, and as the price rises small mines will become profitable again and re-open.
Main difference is silver is real, the US dollar is printed from thin air.
 
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