Hi guys, You know the thread "What is next for Gold, $1100 or $1300 per oz?" I was thinking we should do something like that for silver. It seems like silver is rocketing upwards lately. Which is good (well, if you listened to Sciforum Business for the last 3 years). What I was really curious about was this notion that there's more gold above ground than silver? And that silver used to be priced at $800/oz relative to today's dollars, back when the British were still an Empire. If there's more gold than silver and if silver has many more industrial process uses, doesn't market theory dictate that silver must be priced higher relative to gold? So why's it so relatively cheap? My conclusions were that A) There really is a lot more silver than gold (50 times more) B) silver isn't priced properly in the market for whatever reasons. C) Maybe psychologically people think gold should be worth more than silver? D) Investors have put their wealth into gold and thus it is "storing" more "wealth" than silver. - It's all very interesting...
We mine just about the same amount of gold and silver these days. But there is more silver out there in the market place- I'd say 5-10 times as much... but not 50. This means it's undervalued.
Oh yeah- what's next for silver? $50 an ounce is a fair price to pay for silver for the well informed. Checking Kitco, it's at $32. I would buy. It's not coming back down. You all forget if we get to a hard currency situation, most transactions will be in silver.
But that won't ever happen because there's not that much silver around either to give out to everyone so they can spend it. The next step is a cashless society where everything will be done with digital dollars.
Silver is a buy up to $50 an ounce. I said it when silver was $18 an ounce, I now say it that silver is $32 an ounce- it's a solid buy. I can prepare a demonstration to prove my point if anyone feels proof is neccesary.
How high do you think Ag will go? I heard something on the news today about silver price. They said: Gold was up, the USD was down against XYZ, oh, and normally we don't mention silver, but silver was up $X today.... Also, what do people do with silver once they own it? I mean, suppose you own some silver bars, how do you realize their worth? Who do you sell them to? Are you taxed? Can you take them to a bank and say: Here's 300 oz of silver in 10 oz bars ....???
By their weight. You aren't taxed because no one knows what you ORIGINALLY paid for the silver, just like gold. You can take them to most coin dealers and they will convert them , for a fee of course, anytime you want to go. Banks don't have a place to store the silver and therefore aren't in the business of keeping track of prices minute to minute.
Well if they- the people in this very forum- bought into silver when I was ridiculed for saying to BUY PRECIOUS METALS! when silver was $16 an ounce they would have doubled their money within a year. Or keep holding onto it and triple their money in another year. Has the US dollar gone up or down since last year?
What do you mean has the US dollar gone up or down? I though it was always going down in some sense of the word ---- isn't it? I assumed THAT was the whole point? So people keep investing, and working and slaving away.... If you're asking about inflation then I think the USD it's going down. Relative to other currencies some up and some down. Just to clarify, I'm completely naive in this regard, but if I had a 10 oz bar of silver, I take it where again? Only some coin dealer or sell back to a mint? When you sell back, don't you pay tax? I can't believe the government would let you make a sale without taking their cut of the action......
