Rising silver prices....pro and con

[dan53]

I don't have a lot of silver but I do have some and its good to see the price rise result in more dollars in my pocket. But there is a flip side to the benefits of a price rise. Does anyone recall a rise in price that was the result of GOOD news? Take for instance this scenario....."News flash: Iran reverses its nuclear position and throws open its facilites to international inspections and vows not to do anything to impede the flow of oil throught the straits of Hormuz. The price of oil would tank and along with it the price of silver would decline substantially. Of course thats not likely to happen anytime soon. Sooner or later the Iran issue will come to a head, when it does the price of silver will skyrocket and the price of oil will follow along with it.

[68Camaro]

The fundamental reason for increase in dollar price of gold and silver has little to do with war or rumors thereof. It is because of money printing, pure and simple, and would occur regardless of war, when taken from the larger view. Of course the short term reactions in price can and will go up and down with emotions (and several other reasons).

[rexmerdinus]

It is because of money printing, pure and simple, and would occur regardless of war, when taken from the larger view. Of course the short term reactions in price can and will go up and down with emotions (and several other reasons).

True, but if not for turmoil in the world (and we can talk all day about whether the unbridled printing of money is the cause or the result of world turmoil--probably a bit of both), the idea of protecting one's wealth and family through the hoarding of PM's or any other commodity wouldn't be coming up more and more around the proverbial watercooler. When there's no seriously bad news, more people are content to remain fat dumb and happy, and I can understand why--I used to say I'd gladly take Fat and Dumb if Happy came along for the ride!

[fb101]

I don't have a lot of silver but I do have some and its good to see the price rise result in more dollars in my pocket. But there is a flip side to the benefits of a price rise. Does anyone recall a rise in price that was the result of GOOD news? Take for instance this scenario....."News flash: Iran reverses its nuclear position and throws open its facilites to international inspections and vows not to do anything to impede the flow of oil throught the straits of Hormuz. The price of oil would tank and along with it the price of silver would decline substantially. Of course thats not likely to happen anytime soon. Sooner or later the Iran issue will come to a head, when it does the price of silver will skyrocket and the price of oil will follow along with it.

If your point was it's a drag that it takes some bad things or others to make silver rise, you're on the money.

[halfhunter]

I don't have a lot of silver but I do have some and its good to see the price rise result in more dollars in my pocket. But there is a flip side to the benefits of a price rise. Does anyone recall a rise in price that was the result of GOOD news? Take for instance this scenario....."News flash: Iran reverses its nuclear position and throws open its facilites to international inspections and vows not to do anything to impede the flow of oil throught the straits of Hormuz. The price of oil would tank and along with it the price of silver would decline substantially. Of course thats not likely to happen anytime soon. Sooner or later the Iran issue will come to a head, when it does the price of silver will skyrocket and the price of oil will follow along with it.

While this is true, most commodities and especially silver, are at the mercy and whims of the paper traders.
I mean there were no earth shattering events that caused this:



HH