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Why Are Silver Sales Soaring?
Submitted By Jeff Clark, Senior Editor, Casey's Gold & Resource Report
The U.S. Mint just reported another record, but this time it wasn’t for gold. The Mint sold more Silver Eagles in March and in the first quarter of the year than ever before. A total of 9,023,500 American Silver Eagles were purchased in Q110, the highest amount since the coin debuted in 1986.
While this is certainly bullish, there’s something potentially more potent developing in the background. Namely, how this matches up with U.S. silver production. Like gold, the U.S. Mint only manufactures Eagles from domestic production. And U.S. mine production for silver is about 40 million ounces. In other words, we just reached the point where virtually all U.S. silver production is going toward the manufacturing of Silver Eagles.
Yikes.
This is especially explosive when you consider that roughly 40% of all silver is used for industrial applications, 30% for jewelry, 20% for photography and other uses, and only 5% or so for coins and medals.
To be sure, mine production is not the only source of silver. In 2009, approximately 52.9 million ounces were recovered from various sources of scrap. Further, the U.S. imported a net of about 112.5 million ounces last year. (Dependence on foreign oil? How about dependence on foreign silver!) So it’s not like there’s a worry there won’t be enough silver to produce the Eagle you want next month.
Still, why so much buying? The silver price ended the quarter up 15.5% from its February 4 low – but it was basically flat for the quarter, up a measly 1.9%. We tend to see buyers clamoring for product when the price takes off, so the jump in demand wasn’t due to screaming headlines about soaring prices.
I have a theory.
For some time, silver has been known as the “poor man’s gold.” Meaning, silver demand tends to increase when gold gets too “expensive.” The gold price has stubbornly stayed above $1,000 for over six months now and spent much of that time above $1,100. You’d be lucky to pay less than $1,200 right now for a one-ounce coin (after premiums), an amount most workers can’t pluck out of their back pocket. But Joe Sixpack just might grab a “twelve-pack” of silver.
What would perhaps lend evidence to my theory is if gold sales were down in the face of these higher silver sales.
The U.S. Mint reported a decline in gold bullion sales of 20.8% this past quarter vs. the same quarter in 2009. Further, other world mints have seen sharp declines in gold bullion coin sales as well: the Austrian Mint reported an 80% drop in sales for the first two months of the year and the Royal British Mint a 50% decline in gold coin production for the first quarter.
What’s even more dramatic is the difference in the dollar value of the sales. Gold Eagle sales in the U.S. dropped $10,263,500 from a year earlier – but silver sales increased by $61,855,290. So, not only did silver sales make up the drop in gold sales, they exceeded them by $51,591,790.
Is the rush into “poor man’s gold” underway?
Why the answer to that question is significant is that a shift toward silver for this reason could signal we’re inching closer to the greater masses getting involved in the precious metals arena. And that – for those of us who’ve been invested for awhile now – would be music to the ears. Because when they start getting involved, the mania will be underway, and from that point forward, it’s game on.
I’m not saying the mania is starting, and I actually think we could see another sell-off before things take off for good. Gold could dip to $1,000 and maybe even $950, with silver going to the $14-$15 range. But as clues like these begin to build up, we’ll know we’re getting closer. (And any drop to those ranges would clearly be a major buying opportunity.)
Everyone talks about gold, myself included, but a meaningful portion of one’s precious metals portfolio should be devoted to silver. The market is tiny, making the price potentially explosive. Remember that in the ‘70s bull market gold advanced over 700%, but silver soared over 1,400%.
Don’t be a “poor man” by ignoring gold’s shiny cousin.
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I smell a run somewhere....
ETF's overheating a little?
because the jig is up
Tough to beat silver and PM.
Economy 'recovers' = Win
Economy crashes = Win
Economy vaporizes = Win
+10000!!
True.
But keep in mind:
Here's an illustration...
TODAY:
Loaf of bread = $2.00.
GLD 1oz = $1159.00
Therefore : 1oz GLD = 580 loaves of bread.
POST ECONOMIC CRASH ( Mad Max meets Wiemar republic scenario)
Loaf of bread = $100,000,000
GLD 1oz = $500,000,000
Therefore :
1oz GLD = 5 loafs of bread.
Conclusion:
Gold will devalue, but not nearly as bad as fiat currency and eventually, you will go hungry.
Ill brew my own bread, thank you very much.
well, id look to where that scenario already exists or is close to what that would be: Zimbabwe. loaf of bread can be had for 0.1 grams of gold.
True, unless we have food shortages.
Not really. During hyperinflation, gold prices tend to keep up with food prices. For example, a loaf of bread in Zimbabwe during the height of madness was 0.1 grams of gold, or about $3 dollars. The same price it is here and now.
I would argue that during hyperinflation gold will at least match food prices. In fact, I believe it would outpace the food price and others. In addition to preserving purchasing power long term by matching inflation, gold is a barometer of future inflation as well, before it arrives. So it should get some extra nudge from that in addition to the move from keeping up with food prices. However, if the last few decades bear out in hyperinlflation then it may take a while of it being in evidence before the metal reacts and outpaces the base index you are comparing against.
Actually, at that period it was $2.50, as that was placer gold.
I see everyone beat me to this...but...
You can still buy the SAME amount of product with the SAME amount of gold or silver you could almost a century ago.
A pre-64 quarter (90% silver) in the year 1964, would buy you about a gallon of gas in "dollar" terms...with the spot price of silver being what it is now, that same quarter today will buy you...around one gallon of gas...in dollar terms...even in Kalifornia...LOL.
http://www.coinflation.com/coins/silver_calc.php
A word of advise, never kick a fresh cow pie on a hot day ;-)
Historiclly, one ounce of gold ought to carry the purchasing power as to buy one well made suit.
Nobody knows the future.
Who knows what is going to happen?
All I know is I want as much TANGIBLE VALUE in my possession as I can get. No more paper 'promises to pay'.
I don't trust the stock market.
I don't trust the government.
I don't trust big business.
And I certainly don't trust counterfeit Ben and his fuckface banker pals to do the right thing when it comes down to it.
Let them inflate. Let them deflate. Let them stimulate. Let them masterbate.
I think that's a nice suit, a good pair of shoes, and a good meal.
The suit, shoes and meal have improved in quality in 5000 years, but that's progress for ya.
while i agree that silver is taking off because gold is too expensive for the average person
i can't see a sell-off . not with the lbma/andy maguire story still fresh in people's minds.
Well, I buy silver precisely because I can't afford gold. I'm poor. :(
All the bears have given up on the market and are running for gold/silver. I'm still short but will join them soon if this is the way it's going to be. John Paulson - I tip my hat to you!
Yukon Cornelius must be getting a woody.
Siiiiiiiiiillllllllvveeeeeeeeerrrrrrr!!!!
No worries. JPM stands ready to delivery paper silver eagles for all comer!
I saw the Q1 sales number a few days ago, and was wondering about that. Maybe one or two of all the people I know out there in the real world is buying any physical silver or gold bullion. How many of those nine million silver birds went to Mom and Pop retail investors?
**GASP** How do know we the treasury's sales # isn't just a ruse to make silver look cheap and plentiful enough to let JPM short it all the way back to hell & $4/oz! Then everybody will LOVE their Ben Bukks again!
They have plenty of reasons to want to keep the poor man away from his gold. Gold's price is being held down. Silver's price has it's face in the dirt with a boot on it's neck.
Do not forget that JPM is short 4 times the amount of silver that the Hunt Brothers went long with. Again, 4 TIMES the Hunt's position!!! What might the price be at were it not for this deluge of supply overwhelming the market? Especially as these are most likely naked shorts without any physical backing...
And remember that the price got to the $50's on the Hunt's taking 1/4 the silver JPM has sold short and taking it off the market.
Come on in already, the waters fine...
assuming 3% inflation, today's silver would have to be $50+ / ounce to equate to the Hunt's peak. SLW is one of the best ways to play silver and it's trading like there's a lot of support out there. keep in mind that the physical is taxed like a collectible, so are the physical ETFs whichis why miners and royalty trusts are better ways to expose.
When did JPM either relate to you alone or divulge to all its silver short position?
its called reading quarterly reports, as well as the OCC - that would be the Office of the Comptroller of Currency, which outlines the amount of derivative exposure in certain segments. By looking at multiple sources you can find all the variables needed to solve the equation. And these are public sources considering they are a) quarterly 10-q's and b) reports from the various govt agencies that exist and report on various aspects of the financial market. I understand you find it hard to use public resources to do research on your own rather than be handed a buy/sell from someone else, but it is a fact. JPM morgan has a shitload of shorts in silver. A god damn shitload.
Of course you believe Obama too when he says taxes aren't going to go up, huh? And if you dont believe that then why? Both are representatives for their respective groups. Oh, that's right, only democrats lie, right? Hey, the guy is in a suit, he MUST be telling the truth...
Time for that epson salt bath, candles, and Loreena Mckennitt...or was it Wild Turkey with a drop of water............
Another idea is worry about gold confiscation.
If we see an uptick in platinum and palladium at the
same time that might knock a hole in the "poor
man's gold" scenario and suggest that some might
want to diversify out of what will be seized.
They will not try. Think about the odds of success:
ATF goes door to door, asking for gold/silver. At half of the houses, they would be met with Americans wielding firearms! Americans would then begin gossiping that the confiscation is actually not for precious metals, it is for guns!
Besides, they would meet WAY more guns than gold. Confiscation would mean instant uprising, and instant rebellion. They would rather let a few "gold bugs", or "silver soldiers" as I like to think of them (WWIII is happening...it is a currentsea war....and everyone participates, knowingly or not), be well off with a little wealth, than try to face down 150 to 300 million guns.
Indeed. Think about all the threats against the census workers that were constantly being thrown about. And that's just asking some questions, let alone telling you that what is yours isn't yours anymore.
Yep easier to ban metal dealers and coin shops and only allow metal to flow through official channels. It will create a black market but they will be able to rattle a little loose. And it will give an excuse to load up more people in prison.
If you want to bet on a growth industry in America go prisons,. I know what you're thinking "But Shamful, America has the most prisoners in the world, and by far the highest % of the population! Surely the prison population can't get much higher?!?" Well Shameful is here to tell you that you can expect them to double up. Got to put that CRE to use somehow, and unemployed people are criminals waiting to happen. Office space turned prison space! Same difference still chained to a desk only now your not getting paid.
what if trading PM becomes illegal? in that case if we want to realize the value in our PM it will have to be through black market (and we'll learn the true meaning of counter-party risk)
what if it's the 300 million guns that come and try to take the gold? may well be the case that there will be lots of broke and hungry guns trying to find gold, instead of government try to do it like people tend to assume.
again in this case it appears risks significantly increases if one wants to realize the value of the gold/silver ...
Yeah I can see it now. Armed zombies wondering the streets going house to house for gold, coming up empty handed 99.999% of the time, and half the time meeting other gun wielding individuals. Do the math. Those are horrible odds. Better to go pan for the stuff in creeks than to try and guess which houses are holding. And what are they going to do. "Do you have any gold here." "No." "Oh, but I can read minds! You have your stash in a coffee can in your attic. Give it up!" It may happen that people go apeshit, but it will be only for a week or so until said zombies are blasted for trying to bully the home owners that keep their rationale, or flat out give up and walk the sad side road to the US Government sponsered tent cities I am sure would pop up in the scenario.
And if it goes black market, it will not matter. If that is how far the US Government takes it, we will be in Mad Max scenario, and there will be no paid police/lawyers/judges to authorize the power it would take to backcheck all transactions.
note to self: find out where Lennon Hendrix lives so I can steal his coffee can in the attic...
hahaha!........(sudden realization/smile goes to crossed eyes/drops toothbrush/grabs keyboard)
oh wait.....did I say coffee can, I meant flower pot...in the bathroom.
(starts thinking) now I have to tie him up to get the answers out of him. We have ways of making you talk...
thieves and robbers don't go door to door, just like how they follow the money today, they will follow the trail to the people who try to realize the value of their PM holdings by trading for something
whether governments will be functioning or not, in a world wide fiat currency collapse the "counter party risk" for using PM goes way up, especially since like you said, 99% of people don't have gold, but they all have guns
if the value of something cannot be realized, does it still have value?
In a worldwide currency collapse the counter-party risk of EVERYTHING goes way up, not just gold and silver.
Net/net it would still be wise to have the gold and silver along with the means to defend it against theft.
They excluded collectible coins from confiscation previously and I strongly believe the same exclusion would happen again were they to go with confiscation. My understanding is that collectible gold coins count as 1933 and prior. Eagles are considered bullion, not a collectible coin. You can get 1933 and prior years for not too big of a premium over spot. Of course, they aint gonna grade PCGS MS70, but they are gold. And they count as a collectible for purposes of talking about collectible coins that may be excluded in a gold grab.
I wonder if confiscation would actually happen in todays world.
FDR did it because people were still saavy enough to think of it as money and were afraid to use the banks. He had to use it to force people back into FRN's and the banking system.
That isn't the case today. The only coin dealers I know are old guys and gold is just another abstract concept to the bulk of the population.
I am not that worried about confiscation. The hyper-complexity of the government is already starting to break it down.
Dead right primus
just pointing out to an earlier post about how the previous confiscation worked and if the same thing were done again how it would apply to eagles as counting (or not) as a 'collectible' coin.
"than try to face down 150 to 300 million guns."
and that's in Texas alone.
I decided to err on the side of caution.
I'm not concerned about gold confiscation simply because the dollar is no longer backed by it as it was in 1933. It was legal to confiscate it then for that reason. It would be illegal now for the government to confiscate gold under these conditions however one must always keep in mind that a US government agency issues both gold and silver Eagles making them "potentially" government property. You may just be the barer or holder of that property and not the legal owner (similar to fee simple vs allodial title on real estate) and I've even read that the most you could get reimbursed for is the face value.
rotflol since when has the gov obeyed the law :) Now I don't think there will be confiscation, but I won't rely on Uncle Sugar to obey the law. After all if he is willing to openly talk about murdering US citizens I don't think they are worried about such trivialities as "laws". Remember they have to give you the right to sue them.
I was just trying to distinguish the now and then in regards to gold confiscation and throw out any other methods the government may take if they so choose to. I really don't think people realize that the FR issued dollars and coins DO NOT constitute real and absolute ownership by the barer. Why would anyone assume minted Eagles do?
Well technically Eagles are legal tender, so an argument could be made. Hell legally they could take them and give you the face for them. I don't own any and think the premium is to high. I'm more into Maple Leafs. If Canadians invade and try to take my coins, well that's a risk I'm willing to take :)
Yeah Canucks aren't too scary, unless they've got a hockey stick in their hands, but only if they can dodge a .223. Watching Bloomberg right now silver at $18.35 sweeet! I've been getting all different coins, Austrian Philharmonic, Maples, Aussie stuff, Koala's, kind of neat as collectibles and really nice minting. Besides if I'm in all the currencies at least one will be the cream of the crop and the rest will still be silver and gold. Lets just hope it's not the yuan.
i am into the Leafs as well for the same reasons....by the time this ponzi mess all pans out, the US will have no credibility whatsoever and our eagles might just follow that path...
Far easier to seize invisible money from 401(k)s and IRA accounts. Those are today's version of gold. Seize might be a harsh word for it, they will label it something like "Invest in America."
dumbass shithead - as you seem to like making personal attacks on peoples opinions without actually backing it up with, you know, facts, or reason. Just another asshole opinion, but I guess that's Jory, huh?
Yea right, defend your position at any cost. That must be a
really weak hand you holding.
Either you play to bluff, or you play to pay. Either way, please sit down. There is a seat open to my right.
You play your hand, I'll play mine and we'll see who is smiling in the end.
at any cost? no, just with facts actually. I prefer them. Gold production is declining. Sovereign currencies are doing not so good. Lawrence Summers paper on Gibson's Paradox and the gold standard and the relationship to negative real rates and the positive impact on gold's price that it has. Disclosures by the very industry people (Christianson) that deny there is any manipulation or any worry over the gold market that it trades 100:1 paper to physical. Gold trader Andrew M's testimony as well as listed emails including specific info on future attacks on gold prior to the occurrence, as well as listing the exact individuals at the CFTC to whom the emails were sent to (which no one at the CFTC has denied they were sent), numerous public documents that identify JPM as the huge short in the market, prospectus' from GLD and SLV that contain language indicating a shareholder is an unsecured creditor, numerous public documents on their websites from not only the US central bank, but the CB's for Australia and England that indicate selling and leasing gold to manage its price, declassified documents through FOI requests that indicate the Fed's interest in continuing to control the price of gold even after we had supposedly broken the last link with gold already, numerous statements in public testimony or in the public domain from former USA CB chairmen that indicate controlling the price of gold from rising too high is instrumental in monetary policy...
well, theres actually much more, but I dont know that you'd actually take the time to read and learn anything regarding these items...
I could argue with you but,When it comes down to it if they lose, you lose. There is no winner in this game, its game over for almost everyone. Im out of the matrix sort of speak because it really difficult to be total out but that might be what it takes and if you totally out they dont give a shit about gold or silver, it is trade-able but not what your thinking.
no you cant argue with me or you would have already. No need to refute everything - pick one item I mentioned. Lets discuss. Using logic, deduction, and reasoning from actual facts on the ground.
Of course, its easier to just say "its overvalued" and walk away...
And it is a tradeable thing, which IS what I am thinking - 'in extremis'
Damn right! Fools should recognize that paper is the shit! In all of recorded history paper money has never lost value. When they say good as gold they should be saying good as paper! I'm sure that gold going from 20 to 1150 is just a 100 year bubble because we all know paper money only gains value. Gold bugs are in trouble when gold goes to 10! Look at Bernanke, that man clearly knows what right for you just got to trust him. Inflation is a myth and made up by leprechauns, animal spirits, and gold miners!
All players are like my man Jory! All in on paper. Ladies love the paper! LOVE IT! Just last week I was showing off my ZIMs, to some fine honeys. "Baby I'm a quadrillionare!"
/sarcasm
I was so worried about your mental health after reading the first 2 lines, my heart raced. Then I got it.
I fail to understand your motivation for posting.
Personal insults, etc, frankly makes your argument seem desperate.
Hmmm, lemme see here... how is that saying again?
Right - be careful pointing your finger at somebody, as in the same time you are pointing three of them at yourself.
If you maintain this attitude, the other kids will *not* want to play with you and you will be stuck again with ripping the wings off of those little flies
Dudes been here a week or so. Just another stooge.
Silver is a good buy for two reasons, cheaper than gold.
And gold is getting harder to come by.
Gold is VAT excempt in the UK. Silver... not so much. 17.5% added to the price, going straight into "Keynesian" Brown's core constituencies, so he can bribe some more voters.
I think I'll stick to gold.
17% VAT on silver in UK?!?! That is amazing. Silver miners, then?
Just wait, VAT is on deck here in the USA. And I don't think it will take long for them to "ease" us into a 17% range.
More like slide it to us, minus the KY.
yup. maybe consider some type of allocated or vault account for silver though. i'm using bullionvault, up handsomely in £ so far this year. no VAT on it that way.
if gold costs $600 an oz to mine and refine, how can an oz of silver be mined, and refined for $8.? silver is insanely cheap right now, and it cannot last. this buying opportunity, is only possible, as the side effect of the manipulation, and tptb only permit it, as the cost, to hide the fraud, until they can't. I experience a sensation of relief, everytime I get silver, in exchange for frn"s, like I just pulled a fast one. it's crazy, I can exchange something phony, for something real, cause it hasn't been figured out yet, on a large scale.
Coin shop manana! I wonder when there will be a line to get in? Coin shops the new Club Scene?
"Hey what are you doing this afternoon?" "Heading to the coin shop to see if they have any Maples in the slug box." "Wait up, I just got to gell my hair."
*turns up to coin shop with ridiculous slick-back hair* so where be the silver babes?
The cost is related to the difficulty of moving the many tons of earth to get the ounce. More dirt / rock for an ounce of gold = higher extraction cost. And since silver is more plentiful it is usually found when other metals are mined so the costs are greatly reduced, depending upon how they are allocated to which final metal.
Because there is a lot more of it around, especially as a by-product in the extraction of other metals...
Also you can't mine gold without getting silver. It's not like you go LOOKING for silver and mine only silver and look only for gold and mine only gold. It's all clumped together. You can't mine gold without getting copper either.
Im guessing, but probably because of economy of scale.
this came on youtube today. just an update on the fraud. plus a bit extra
i wonder whats going to happen at the end of this month.
http://www.youtube.com/watch?v=DNSakO8Z11o
The one thing...the one thing I will never be able to wrap my head around, is that there were so many reasons for 9/11 that there should be no question....no question...that it was NOT done by....who? 15 Suadis that were trained...wait no, scratch that, because they failed their flight lessons....that were trying to be trained to fly planes into buildings at rates of decents/speeds that Air Force Pilots could only do "1 out of 20 times".
9/11 will be forever the greatest Coup d'etat in the history of mankind. Greater than Constantine marginalizing the banking families of Rome...Greater than Pharaoh proclaiming that he was God on Earth. Greater than Brown Brothers, Harriman funding the Nazis. Greater than Bill Clinton balancing the budget. Those who perpetrated the crime of 9/11 consider themselves the greatest magicians of all time. I consider them the greatest thieves. I am sure they would concede. And to think, Black Bart used to have a good time.
And it is so easy to see....so damned easy.....
Building Seven Vanishes Right Before Your Eyes:
http://www.youtube.com/watch?v=LD06SAf0p9A
All they needed to fly was the autopilot to intersect a GPS point.
No takeoff control. No landing configuration. No airspeed control needed.
Microsoft Flight Simulator could be used to train for what flying they did.
Troofers are Goofers.
I hate to tell ya Augie, but autopilot don't work like that. Autopilot certainly won't crash a plane into a building.
Sure the AP will crash you into a building. Put in the coordinates and set the altitude and Otto will take you right to it. The systems on the big birds is very precise, particularly on a clear weather day without turbulance. The APs will put the plane right on the centerline for autoland and perform the flare for you. That is tight enough positioning for hitting a tower.
Augie;
Describe to us the precise steps involved to cause a Boeing 757 / 767 to fly an autopilot coupled "approach" to a city at 500 knots...
Please be detailed.
Attila the Hun
Augustus;
Precisely how many low-altitude combat flight hours in jet transports are in your logbook?
That's what I thought...
Attila the Hun
the second plane, was not a commercial airliner, wrong color, and had no windows. where are the people, who were supposedly on these planes? thats what I want to know
delacroix, I would take that info over any other.
I don't know. My cousin was on that plane. Haven't seen her since. You really think the governement is hiding her? Would be awfully wierd since she comes from one of the most powerful families in the country, and lemme tell ya, they were pretty pissed!
Silly, silly people with this 9/11 BS you got going.
whyare silver sales soaring lol
because people are buying silver
Yea, run with the herd, that always works.
so you run with nothing in pocket so make anal comments
in silver 4.25,,
your in debt have about 200 on credit card limit. and are finding thst posting on zero makes the pain go away.
either get in silver or you are the wildebeest herd.
so you run with nothing in pocket so make anal comments
Bingo
Just checked BullionDirect, and for the first time in my dealing with them they have no 1 oz bullion product that isn't a sovereign coin. Last time I checked they had mercury & buffalo rounds and 1 oz comex bars. Now the only bullion is 10 & 100 oz bars. I'd say demand is strong.
Silver is just along for the ride but will rise nowhere near as much as gold. This is not about the little people but about the big giants, and they're stacking gold.
Silver tracks oil verbatim. Always has. Peak oil? Yes.
Silver is great because instead of having just a small handfull of gold coins, you can have a great pile of coins and roll around in it. And that's important for a poor man like me. I'm never going to have a mountain of gold (or platinum), but I can play pretend with my silver!
I just had a mental picture of Scrooge McDuck swimming in his money vault. lol
could scrooge be fed chairman? he had it figured out some time ago. scrooge > ben bernanke.
The pre 1964 Washington quarters have a melt value of about $3.25 or so. That is about a 5% return since 1964, not wonderful. However if you actually do need to buy something using metal they would be a whole lot better than trying to use an ounce of gold. The quarters would probably not be challenged as fakes either. It has nothing to do with the purchase of the new mint pieces. It is not too hard to buy some circulated ones on the bay for the metal value, though in smaller amounts. If you are really worried, buy a couple hundred dollars a month worth till you have your fill.
One historical note is that when govts. have added a zero or two onto the paper they don't bother with the coins. The old coins are probably still going to be worth the same percentage of the new bills. And right now nickles have a melt value of 0.06+. However, if everything does go to Hell I doubt that base metals will be in much demand so the quarters would be a better holding. Nothing will be being built. If it is just big inflation then they would be fine and would do great in the event of a trade in of notes.
I have been following Mark Faber's advice and adding to my physical gold position at regular intervals. I personally don't see gold prices falling with the sovereign default crises that are emerging. I only buy foreign gold coins not silver, because I can carry more wealth in a smaller form factor. I hold no nationalistic allegiances, and only depend on myself for my future financial needs by living well below my financial means. As a life long saver, I will not be held captive to political and macroeconomic ignorance by so few deciding the fates of so many. My fate will be in my hands and no one else's.
99 cents (each) over spot, 20 dollars for shipping, (50 x 19.52) + 20 = the new captcha.
[If] it came to seizing private gold, they would not do it illegally.
They would just change the law. Easy peezy.
I would expect some back room pressure on silver shooting up as it is an industrial metal also. And industry will not quietly allow things to get too crazy without a fight.
But it will be fun to see.
Wish I had some.
Hey, you gold and silver bitches, aint nothing risk free. You choose but I know
how hairless hungry monkeys do things.
but I know how hairless hungry monkeys do things.
No you dont - this is how it is, and when watching think 'in extremis':
http://www.guardian.co.uk/world/video/2009/feb/11/zimbabwe-gold-panning-starvation-food
FWIW where I am (UK), precious metal purchasing appears to be done more by high net worth individuals (i.e. Directors, CEOs etc - not so much the common man). Wish I had the £££ for bars rather than oz...
This from listening to those visiting the local trader & observing, so read with that context.
1. Buy ticket to India.
2. Fly to Mumbay.
3. Buy as much gold as you can carry.
4. Fly home.
5. Sell on street.
That would be great if the sell-off he speaks of materializes. I don't have the cheddah to be in the gold game, and have only recently started diverting some of my BernieBucks to silver. (Disclosure: Corporate financial analyst who probably makes in a year what some of you guys trade in an afternoon.)
That being said, still buying the dips as I don't want to get stuck in a "wait for the price to come down" mentality thereby never building a position in the event the price doesn't come down.
If it does, I will do what I think Mr. Lennon Hendrix said on another thread yesterday (apologies if it was someone else): be dipping my balls in it. My name is Grifter, and I am a Silver Teabagger in training...
something major is going down. They just killed off Polish President and several of his government officials including head of Central Bank of Poland.
The Russian weather control technology was able to create that dense fog in the area around the airport. The pilot must have been a true son of Poland as he shot the approach for three attempts and fount terrain on the third one. Pretty poor planning to have the entire top echelon of the country on one aircraft.
"It's only a buck per share! I'll buy 1000 and get rich!"
This sort of reasoning has always pissed me off. Real basic math here: if you have one share that costs $1000 go up 5% it's the same as having one thousand $1 shares go up 5%. Jesus!
Maybe the chances of a lower unit price increases the likelihood of greater percentage moves? Possibly, but what a stupid fucking way to invest("Duuh, it's cheaper so it will go up more!"). Gold can be purchased in gram increments. Indians (dots, not feathers) can afford to buy gold but Americans can't?
You're probably right though. Silver might get ridiculously overvalued relative to gold just because of its lower unit price and widespread investor ignorance.
This sort of reasoning has always pissed me off. Real basic math here: if you have one share that costs $1000 go up 5% it's the same as having one thousand $1 shares go up 5%. Jesus!
Thank you - I have the same feeling.
However, historically silver has outperformed gold at the end of the run. With enough people of the mentality of silver being more 'affordable' and buying that can create higher demand and thus price move as well. Especially if your talking about a 70's style inflation/stagflation where silver gets positive push from being a precious metal as well as being used in industry.
Also, there are no above ground stocks of silver of millions of ounces like last time. Could get interesting this time.
You're not considering the historical price of Silver to Gold or fact that all gold that hasbeen mined (or substantialy all) is still held, while much of silver has been consumed (photographic and other uses). Gold is more proven monetarily, but Silver will surprise on the supply/demand.
http://www.silver-investor.com/davidmorgan/bigpicture.htm
King: "Thank you for spending time with me on the subject of digital photography Dr. Whitney. Maybe you can help myself and others to gain a better understanding of digital photography and it's impact on the silver market. To start off, what percentage of silver used in color photography is recycled?"
Dr. Whitney: "80 to 85% of silver used in color photography is recycled. Silver used in color film is completely removed from the paper and all of the silver goes into the liquid so there is an incredible recovery rate."
this article is very old. digital photography has grown exponentially in acceptance and quality. conventional photography will always be around just like many other utterly obsolete technologies but it will become a curious niche hobby, like those guys that like to get all dressed up and play "Civil War" on the weekends. When they are done pretending going to war, they'll go home and develop their own pictures. Photographic use of silver will fall off the charts in a decade or less.
much of the silver that gets used gets reclaimed. I use 15% silver brazing rod for work, so I have a very real idea how silver is used and reclaimed. I think the silver that is used in clothing, containers, toilets, etc,... will never be reclaimed.
the ratio of silver to gold in the earth's crust is also something that I have thought about but I don't know anything about mining so I'm just speculating here but it seems that silver is easier to bring up than gold. That might justify the divergence from the historical price ratio that you mentioned. I like silver and gold and am long both because I expect them to be the next speculative mania. I have ridiculously high price expectations and will sell my holdings into the rally should there be one.
Precious metals are great, but in the coming catastrophe everything will deflate in terms of wheat.
spoken like a true wheat weevil lol
a bushel of wheat an oz of silver .
a bushel of wheat ,, a bazillion pieces of paper
That 580 Loaves of bread are best served to the town for a week.
Then what?
I would use the money instead to establish a Bakery and move necessary energy, payroll and foodstuffs to make bread all year.