Guest Post: Silver - Still The Investment Of A Lifetime

Tyler Durden's picture

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ATG's picture

Good luck with that

What did one lemming say to the other?

So far so good!

Speaking of utterly silenced:

http://www.safehaven.com/article/5133/the-great-silver-spike-of-1980

tmosley's picture

Enjoy your hard earned dollars.

ATG's picture

Thx tm

Went through this in 1980

Farrell's Rules 1-6, 9&10 may apply here:

http://bigpicture.typepad.com/comments/2008/08/bob-farrells-10.html

Bay of Pigs's picture

You aren't Rich from Ackerman's board are you? Bob Farrell's Rules? LMAO. Another numbskull compares it to 1980. Good luck with that reasoning.

Imminent Crucible's picture

I love these witless silver-bashers.  They always emerge whenever silver takes another leg up, only to be proven wrong yet again.  And again.

I began buying silver when it was just over $4.  My cost basis is so low that silver could get cut in half and I'd still be in great shape.

A silver basher is a guy who didn't have the wit to buy when it was cheap, and now has to try to justify his stupidity.  ATG=Nadlerite=Loser

The Rogue Economist's picture

Nice rules, and completely accurate. But what you're not seeing is that this reversion to the mean isn't in gold, it's in the value if the dollar.

ATG's picture

so far junkers have nothing profitable to say, sigh

dehdhed's picture

maybe according to the point and figure chart but the measured move from the breakout of the huge inverse head and shoulders would be more like 31.   close but not there yet.   and then it usualy just consolidates for a while.   sometimes it retraces about 50% of the breakout move and sometimes it even retests the breakout point if fundamentals don't justify the breakout (but they do).

the main thing is once the initial retest is over, the slope of the move will continue for as long as the pattern took to develop. since the pattern took 2 years to develop,  and if you could extend the chart 2 years,  you could draw a two year projection line that would target the logrithmic scale of like $150 or more, which is pretty freaking amazing.

Quinvarius's picture

See.  I feed trolls.

Michael Victory's picture


nicely organized gio.
we should chat.

~MV

A Nanny Moose's picture

Just don't feed them after midnight. No wait...that's Gremlins

mark mchugh's picture

Dear Numbskull,

If you ever find yourself on the phone with your grandmother who's fifty years in the past (that would be 1960), and she's about to bury a time capsule that you can open now, what would you ask for?

  • Most of the Dow components from that era are long gone, and Apple doesn't exist yet.
  • It's illegal for her to own gold, remember?

I'd tell grandma to bury quarters for me.  A 1960 quarter is worth $4.70 today

http://www.coinflation.com/coins/1932-1964-Silver-Washington-Quarter-Value.html

Minimum wage in 1960 was $1.00 or .715 troy ounces of silver, that's worth $18.80 today.

So, uh...what's in your time capsule?  Woolworth's stock?

And what are you putting in your grandkids time capsule?

A Nanny Moose's picture

+90%. A fellow fan of junk silver. Junking might be a compliment.

Was in a local diner the other day, that has been around since the 1940s. On the wall is a pic from inside the diner ca. 1940ish (forget the exact year). The menu can be seen in the background.

Hot Dog - $0.10

Root Beer - $0.10

Now, we spend the melt value of that quarter on Starbucks.

 

mark mchugh's picture

That first line of yours is gold! er, silver I mean.

Gas was 0.31 in 1960, so that quarter buys more now than it did fifty years ago.

I've got a question for you, if you see this again.  Is there any disadvantages to junk silver coins?  I look at it as melt value is melt value, but .9999 fine stuff seems to command more respect in terms of premium.  Any thoughts?

 

(plus I just like to think about all the places and people the coin's been through.  Crazy stuff, like I wonder where this coin was when JFK was shot and such.  I know, nuts.)

Strongbad's picture

It commands a higher premium because it is more pure and hence easier/cheaper to refine.  Also because the producer has to recover his production costs of creating the .999 bars/rounds while sellers of 90% silver did not pay the US Mint to make the coins for them.  Finally, a 90% coin that has been circulated for 40 years is not going to be its full weight due to wear.

Still, 90% can't be beat for price and reconition factor.

mark mchugh's picture

Thank you for the insightful reply.

SGTbull07's picture

- 1 for not recognizing the blatant 100 to 1 paper manipulation of the metals per Jeff Christian

- 1 for not having the courage to stand with humanity and against the criminal banking cartel

- 1 for your general unsavory flippant Cliff Clavin-like tone

 

Chappaquiddick's picture

SGT - I've just seen your latest posting on youtube

 http://www.youtube.com/user/SGTbull07#p/u/12/KGpi1gxtAOY

Is this for real?  A years output traded in a day?  Could you confirm what that volume was composed of - pure physical or paper only or a mix (if so what was the ratio of physical to paper)??  Are you aware of any equivalent activity on the LBMA??

If you're minded to respond I have another question:  Why do you think that the paper market (which offers cash settlement terms) will crash if there is a commercial signal failure should the exchange be unable to meet physical delivery deadlines/volumes.  Surely both the paper and the physical markets will rise - AND - how could you price these contracts differently, surely the derivative and physical markets influence one another in (supposed) price discovery??

Thanks

Quinvarius's picture

Dollar got slammed today in a down stock market.  So did Treasuries.  Good luck with your deflation fantasy.  I kinda remember explaining this would happen just yesterday.  But you go ahead and declare victory against inflation as silver trades from 18 to 29 to 26.  LOL.  Yes.  Huge victory for deflation has been won thanks to the use of capital controls by the commodity exchanges.

Maybe you should remind us all of your degrees and such that prove silver never went from 18 to 26 and gold never went from 1100 to 1350.  I seem to remember those were the entirety of your deflation thesis.

Shameful's picture

Well hopefully the big boys learned from Bunker Hunt.  Don't buy on margin and take delivery.  If someone anted to run at the system seems that's the way to do it.  Rule changes mid game are a mother.

shortus cynicus's picture

Changing rules by exchange IS A RULE. So, any change is not realy a change, its has to be expected anytime.

Last change will be delivery 'susspention', because of some 'disturbing events' or 'national security'.

FRN is suspended since 1971 and nobody complains about it. So will be COMEX paper too until this 'financial terrorists' demanding delivery are all dead.

flacon's picture

"There will always be dips, corrections, and fluctuations in metals, and this should not deter us psychologically > from their ultimate benefits."

 

Absolutely. Keep on buying. That's the beauty of their 100:1 leverage - it only takes a spark to get a fire going. 

RockyRacoon's picture

No!  Time to dump your metals.

From a pre-eminent "expert" who even quotes Nadler!

Nov. 12, 2010, 5:20 p.m. EST

Why gold is a bad investment       
Precious metal lures susceptible buyers into a Midas crush

By Jonathan Burton, MarketWatch

SAN FRANCISCO (MarketWatch) — Gold does not always glitter, but you wouldn’t know that from surging worldwide interest that has turned the yellow metal red-hot.

http://www.marketwatch.com/story/why-gold-is-a-bad-investment-2010-11-12?siteid=nwhpf

 

But, wait!  There's more:

Gold's rise may end badly for investors

Many investors expect gold to protect their portfolio from economic uncertainty, but gold's recent sharp rise is being fueled by speculation that could end badly for buyers, says Kurt Brouwer, editor of MarketWatch's FundMastery blog.
 Video: Gold's rise may end badly for investors.

mark mchugh's picture

SShhhhhh!!!!!

Can't you just let them beat down the price a little longer?

I'm still holding too much paper!

Jendrzejczyk's picture

This will scare people away from silver---

http://today.msnbc.msn.com/id/22536241

It's worth the click.

unwashedmass's picture

does anyone know how to make a "community page" for Crash JPM, buy silver" on facebook?

jomama's picture

'What I found out is the facial tissues is where the body will store any excess silver.'

 

-Cured his acid reflux disease

-No more sinus infections

-Arthritis went away

 

But is eating it/applying topically worth looking like a smurf?

WhiskeyTangoFoxtrot's picture

But you can't eat silver!  <sarc>

StychoKiller's picture

Just when ya think the World couldn't possibly get any stranger! :>D

saulysw's picture

Now there is a REAL silver bug.

I wonder what color he goes when he's hot? Purple?

tallystick's picture

That's a  colloidal silver scare story. This guy ate silver salts, not colloidal silver,  which isn't  high enough concentration to cause  discoloring.

 

Incidently, this is how the term "bluebloods" originated. Nobility eating from silverware.

asianist's picture

Strangely enough, the blue kind of suits him. The coloring is nice & evenly distributed. He looks a little odd, but not unpleasant. The only problem would be the stares you'd get from strangers.

Spalding_Smailes's picture

It's really funny how VXX got blowtorched for months down 35% last 6-8 weeks before QE 2, then the reverse split put her back in the high 40's....., now the bad news spills forth ....

 

Hmmmmmmmmm...

Turd Ferguson's picture

about as subtle as a fart in church  ;)

 

GoinFawr's picture

Was it Confucious who said,

"He who fart in Church, sit in his own pew"?

mark mchugh's picture

Turd, buddy.

Tell me you didn't print out a chart and scan it back in to post it....

You should be able to right-click most images and "save as"

For anything else:

Hit the "PrtSC" (print screen) button.

Open "Paint"

Hit CRTL-V to paste it into Paint.

Crop and save.

(please forgive me, if that's not the case)

StychoKiller's picture

No, what he did was print out the chart, placed it on a wooden table, took a digital picture of it, uploaded it to his PC, then faxed it to his email address! :>D

mark mchugh's picture

At least 30 seconds of hard laughter!

prophet's picture

My new all-in-one has a shredder built-in.  Now I can shred those sensitive documents just as soon as they are printed.