Sub $20?

[rexmerdinus]

Anyone think we'll see sub-$20? Something in my gut was saying yes, but what are everyone else's thoughts?

[pennypicker]

Yesterday Rick Santelli on his "Santelli's Exchange" commented that he felt the bottom on gold will be between $1100 to $1200 as people are moving away from gold as a safe haven. If Santelli's prediction is correct and since silver tends to parallel gold it is quite possible that silver will fall below $20 if gold does in fact bottom out near $1100.

I remember back in 1980 standing in long lines at the Covina Coin shop hoping to grab some silver at $38 an ounce before it hit $40. People in line were saying we would never see $20 silver again. Months later it was back down to $7 an ounce.


Back in '92 when silver was $5 an ounce and I remember calling a coin shop at the mall in San Bernardino and asked what his buy price was on a 100 oz JM silver bar and he replied, "unless the bar is in mint condition and has the matching coa I really wouldn't be interested in it as it would be hard to move and I don't want to tie up that much money in something that won't move quickly."

I also remember back in the mid 90's I was in Reno, Nevada and I took five pre-'21 vf Morgans into a pawn shop downtown. The owner asked what I wanted for them and I said $6 each and he hesitated for a few seconds and then said he wouldn't be interested at that price. As I neared the door he said he'd go $5 each but I kept walking.

I'm 56 and over the years I've seen the best of times for silver and I've seen the worst of times. When it comes to the price of silver nothing surprises me anymore and I've learned one thing for sure--NEVER say never.

[rexmerdinus]

I didn't see that, but I'll check it out.
Part of my reasoning is that, while we don't know what happens in the next two weeks ( and who really expected what has happened in the last two?), there's the old adage of "sell in may and go away." Of course, if what we're seeing right now is the last great push down before a moon launch, then old adages mean nothing.
Interesting times.

[Rodebaugh]

Yesterday Rick Santelli on his "Santelli's Exchange" commented that he felt the bottom on gold will be between $1100 to $1200 as people are moving away from gold as a safe haven. If Santelli's prediction is correct and since silver tends to parallel gold it is quite possible that silver will fall below $20 if gold does in fact bottom out near $1100.

I remember back in 1980 standing in long lines at the Covina Coin shop hoping to grab some silver at $38 an ounce before it hit $40. People in line were saying we would never see $20 silver again. Months later it was back down to $7 an ounce.


Back in '92 when silver was $5 an ounce and I remember calling a coin shop at the mall in San Bernardino and asked what his buy price was on a 100 oz JM silver bar and he replied, "unless the bar is in mint condition and has the matching coa I really wouldn't be interested in it as it would be hard to move and I don't want to tie up that much money in something that won't move quickly."

I also remember back in the mid 90's I was in Reno, Nevada and I took five pre-'21 vf Morgans into a pawn shop downtown. The owner asked what I wanted for them and I said $6 each and he hesitated for a few seconds and then said he wouldn't be interested at that price. As I neared the door he said he'd go $5 each but I kept walking.

I'm 56 and over the years I've seen the best of times for silver and I've seen the worst of times. When it comes to the price of silver nothing surprises me anymore and I've learned one thing for sure--NEVER say never.

Love it. Post of the day.

[68Camaro]

Good post pp.

Yep, silver has largely been in a rigged market, subject to huge swing variations by the manipulators, ever since the government got out of silver stockpiles and controlling the price, and then debased the currency and released all that stock into the market and allowed it to go on the comex. The ones that make money in that (usually) are the rule-makers and the manipuators that are in cahoots with the rule-makers. The renegades outside the system, unless they are a national body like China, will get smacked down under this system (such as the Hunt Bros). The only thing that will change that violent fluctuation is the demise of the market itself. When you are selling paper that isn't 100% backed by physical you don't have a true free market system that can correct properly.

[John Reich]

Yesterday Rick Santelli on his "Santelli's Exchange" commented that he felt the bottom on gold will be between $1100 to $1200 as people are moving away from gold as a safe haven. If Santelli's prediction is correct and since silver tends to parallel gold it is quite possible that silver will fall below $20 if gold does in fact bottom out near $1100.

I remember back in 1980 standing in long lines at the Covina Coin shop hoping to grab some silver at $38 an ounce before it hit $40. People in line were saying we would never see $20 silver again. Months later it was back down to $7 an ounce.


Back in '92 when silver was $5 an ounce and I remember calling a coin shop at the mall in San Bernardino and asked what his buy price was on a 100 oz JM silver bar and he replied, "unless the bar is in mint condition and has the matching coa I really wouldn't be interested in it as it would be hard to move and I don't want to tie up that much money in something that won't move quickly."

I also remember back in the mid 90's I was in Reno, Nevada and I took five pre-'21 vf Morgans into a pawn shop downtown. The owner asked what I wanted for them and I said $6 each and he hesitated for a few seconds and then said he wouldn't be interested at that price. As I neared the door he said he'd go $5 each but I kept walking.

I'm 56 and over the years I've seen the best of times for silver and I've seen the worst of times. When it comes to the price of silver nothing surprises me anymore and I've learned one thing for sure--NEVER say never.

Great post Penny Picker! I too can remember back in 1979-1980 how it seemed that pm prices were on a permanent upward trajectory. Then, overnight silver fell to $10/oz and I went out to buy. I still have some of that silver today! Then it fell some more and kept falling all thru the 80's and 90's. By 2000-2001 it seemed that 90% was headed back to 1x face! The rise in pm prices over the last 10 years has been a total surprise to me. I am glad I kept the faith during those dark years and kept on buying pm's.

My advice is not to chase prices too much. Think of your pm's as an insurance policy, your insurance against economic/currency collapse. You wouldn't cash in an insurance policy as soon as it had a little cash surrender value and that's how I feel you should view your pm's. Mind the gold/silver ratio and use it to your advantage to increase your number of ounces. You can do the same with gold/platinum prices. Keep a stash of FRN's and if you see an opportunity--act! I don't know if silver prices will fall to $20/oz or increase to $30/oz next week. I don't care--I have my "insurance" and it sure does make it a lot easier to sleep at night in these difficult economic times.