The Price of Silver

[Jonflyfish]

My charts are telling me that there is an imminent correction coming before the trend resumption.
Orders in to hedge the physical exposure.

[1945v]

Country,

I was alive in the 1960's, but not old enough to remember gasoline prices or more importantly to notice most of the change in my pocket was silver

I got my pricing for gasoline from this site:
http://www.1960sflashback.com/1960/economy.asp

I am guessing you are from a petroleum producing state like Texas, Oklahoma, Louisiana or California where gasoline was priced below the national average.

History has shown that silver stays well ahead of inflation.

In the 1960's, one dollar FV of silver would get you 3 gallons of gasoline (@ 33 cents/ gallon).
Today, that same $1 FV will get you 5 gallons of gasoline (@ $3 /gallon)

Actually, in the '60s, you could buy gas for 19c/gal, which would be about right. Gas could be bought 19c-29c/gal until 1973 when the Saudi's promoted their oil embargo. It never has been that cheap again. I remember filling the tank of my new Ford Mustang for less than $5 in 1972.

[Country]

I was in NJ, known to be a good state for cheap gas, at this time.

When I was kid in the '50s, I remember when it was ALL SILVER. I can clearly remember spending SILVER coins for comics, soda, and candy. However, as you might guess, a SILVER dollar, which I could get at any bank for SILVER certificate paper dollars (I liked coins then too; I did this many times and spent the SILVER dollars at local stores), went a long way when you bought stuff (comics 12c, candy bars 5c, and soda at 10c a bottle (at this time, it was worth it bringing back the empty bottles and getting 2c each for them). $5 from Grandpa on your birthday was a big deal, and when I got $10, that was considered too much money for a kid to spend.

[beauanderos]

I remember finally getting an allowance when I hit fourteen or so... 25 cents a week, all the way thru junior high (I was in seventh grade when Kennedy was shot). Then, lucky me, my trust was increased to 50 cents a week during high school, this during a time when lunch money was the same amount. The entire time I was in high school I saved my lunch money so that I could have $3 a week spending money. No wonder I felt like a grew up poor

[harley1]

this has sure been a solid rally

[ZigMeister]

History has shown that silver stays well ahead of inflation.

Actually, in the '60s, you could buy gas for 19c/gal, which would be about right. Gas could be bought 19c-29c/gal until 1973 when the Saudi's promoted their oil embargo. It never has been that cheap again. I remember filling the tank of my new Ford Mustang for less than $5 in 1972.

Country your right...I moved my family to Wisconsin in 1969. Gas in the town I moved to was mostly running .19 to .22 /gal with one independent station selling a gallon for 17.9 cents...that lasted for at least 2 years. I can't remember what gas was selling for prior to 1965 when silver coins were circulating, but I do remember as a young man in the early 60's
going to a gas station and buying 35 cents worth of gas (all I had at the time).

[Joogaler]

My guess is 21.70

[Country]

Nice turnaround in GOLD and SILVER after the FED minutes were released. FED giving a carefully crafted indication that QE2 was coming soon. GOLD and SILVER took off minutes after the statement.

$1300 GOLD and $21+ SILVER tomorrow?? Maybe this afternoon.... SILVER at $21.07 right now!!!

I bought some CEF a few minutes before the FED announcement....

[AGCoinHunter]

Wow, was a huge turnaround. I thought for sure we were headed back under $20. Must hoard more silver, must hoard more silver, must hoard more silver...

[slickeast]

$1300 GOLD and $21+ SILVER tomorrow?? Maybe this afternoon.... SILVER at $21.07 right now!!!

Passed $21 already today....Close to $1300. Will it happen today?

[GA-Silver]

It would be great if silver got high enough that I could pay off my mortgage with the few lbs of it that I have!

[Market Harmony]

Price discovery is a wondrous things, folks. Once a new high is recorded, the price is free to run to the next level, and that could be much higher than anyone would have ever imagined... It all comes down to who is the last buyer?

All this talk of waiting until the price comes back down to your comfort level can really come back to bite you. If you are seriously making an investment in silver, then you buy when you have free cash to do so. Prices today mean little tomorrow and dollar cost averaging will insure that you catch any dips. However, holding back funds waiting for those dips is called speculation, not investing. In my humble opinion, unless you've got experience, support, and loads of information, you're going to get run over if you speculate in commodity pricing.

[Market Harmony]

Looks like we're getting a nice bullish reaction to the overnight dip.

Also, gold is now well above the $1300 marker... $1305 as I type

Will it last or fizzle?

[Kurr]

What happened today? Huge jump on silver and gold. Did the fed try to "assure" everyone again,or did the president make an economic speech?

When do the options expire? I need a pull back, he he.

[beauanderos]

Options expired last Friday

[blackrabbit]

$21.65 WOW!! The US dollar is looking more and more like its going the Zimbabwe route!

[Lemon Thrower]

futures expire today

[Market Harmony]

futures expire today

The futures of generations of Americans?

[BOHICA]

So, $25 by Thanksgiving?

I wish it had held off two more weeks as I have an extra paycheck in October.

[Country]

I have thought that SILVER and GOLD were overbought and needed a pause before going higher. I am beginning to think that the overbought condition will not be relieved until a PARABOLIC move higher ensues. Every dip is being bought, even the tiny pullbacks, leads one to believe in this theory.

What would this be like? The only time this occured in the past was in the fall of 1979. In September 1979, 90% SILVER bags were purchased at 9.2X face; the first time I sold other assets to buy bags of SILVER. AT 9.2X face spot, SILVER spot was $12.87. By January 1980, SILVER spot contracts were topping out at $49. That was what a PARABOLIC move higher looks like. If we can see this possible PARABOLIC move higher starting at $18 SILVER spot, a similar PARABOLIC move higher could mean $70 SILVER by January 2011. I am beginning to believe that this MAGNIFICIENT PARABOLIC move will occur soon.

[BamaJoe]

Come on folks, join me in forcing gold/silver to have a nice dip in the next 48 hours by our combined mental power. I'm planning a big purchase Thursday afternoon and days like this really hurts my feelings.

[Market Harmony]

I have thought that SILVER and GOLD were overbought and needed a pause before going higher. I am beginning to think that the overbought condition will not be relieved until a PARABOLIC move higher ensues. Every dip is being bought, even the tiny pullbacks, leads one to believe in this theory.

What would this be like? The only time this occured in the past was in the fall of 1979. In September 1979, 90% SILVER bags were purchased at 9.2X face; the first time I sold other assets to buy bags of SILVER. AT 9.2X face spot, SILVER spot was $12.87. By January 1980, SILVER spot contracts were topping out at $49. That was what a PARABOLIC move higher looks like. If we can see this possible PARABOLIC move higher starting at $18 SILVER spot, a similar PARABOLIC move higher could mean $70 SILVER by January 2011. I am beginning to believe that this MAGNIFICIENT PARABOLIC move will occur soon.

Only $45 and change left to go

[Market Harmony]

Price discovery is a wondrous things, folks. Once a new high is recorded, the price is free to run to the next level, and that could be much higher than anyone would have ever imagined... It all comes down to who is the last buyer?

All this talk of waiting until the price comes back down to your comfort level can really come back to bite you. If you are seriously making an investment in silver, then you buy when you have free cash to do so. Prices today mean little tomorrow and dollar cost averaging will insure that you catch any dips. However, holding back funds waiting for those dips is called speculation, not investing. In my humble opinion, unless you've got experience, support, and loads of information, you're going to get run over if you speculate in commodity pricing.

Gone are the days of 10 X face
Gone are the days of silver under $20
Gone are the days of "silver never moves more than a dollar a day"
Gone are the days of bargain basement prices
Gone are the days of low interest of silver as an investment

I miss the good ole days already. So much that I went back 20+ pages in the PM section and found this interesting thread. Enjoy the review... I sure did

[exbingoaddict]

Gone are the days of 10 X face
Gone are the days of silver under $20
Gone are the days of "silver never moves more than a dollar a day"
Gone are the days of bargain basement prices
Gone are the days of low interest of silver as an investment

I miss the good ole days already. So much that I went back 20+ pages in the PM section and found this interesting thread. Enjoy the review... I sure did

Market, reading your post, I had to fire up the Scorpion's "Winds of Change" as a soundtrack to it. You can see the weather vane is moving already. As I said before, I'll eat my hat if we ever have $30 oil again.