"Gold May Top $6,000, Silver $600: Asset Manager "

[neilgin1]

Never heard of this guy before, he's Swiss and this article was posted on CNBC, of all places, and is intensely bullish:

http://www.cnbc.com/id/44373049

this lil quote made me sit up straight in my chair:

"Gold and silver currently price at a ratio of around 45:1. However, Gmuer said declining silver output over the last 60 years—as a result of inventory depletion and mine closures—meant silver supplies currently outnumber gold by a ratio of less than 10:1, thus indicating a market correction is due.

Once this occurs, Gmuer said that silver prices would settle at 10 percent to 15 percent of gold. This implies that if gold reaches $6,200 per ounce, silver will peak at between $620 and $930 per ounce."

can you imagine that? wow. a median price objective of silver at $770 an ounce?....i know it SEEMS farfetched, but i can still remember paladium trading at the $100 something mark....imagine that, and here we are at the $43 level, thinking thats high.

[68Camaro]

Yeah - read that from another reference. Makes you sit up doesn't it?

[neilgin1]

Yeah - read that from another reference. Makes you sit up doesn't it?

BIG TIME...thats why i'm trying to stay away from Ebay today, but i dont know if i can.

[Mossy]

heh. I have to keep telling myself that I need /some/ frn's for day to day stuff.

[neilgin1]

heh. I have to keep telling myself that I need /some/ frn's for day to day stuff.

yeh...i know what you mean, but i didnt stay away from Ebay, couldnt, saw a roll of 40's offered BIN, a titch above meltcouldnt resist, but the GEM/BU of 90's offered BIN at 35X's, i couldnt do it, its like you said, we need frins for the day to day stuff...i heard that.

[nero12345]

I think if silver goes much higher than 60 an ounce then those mines that are closed would open up and more silver and other PM's would come on the market which messes up his ratio argument. I know here in the maritime provinces we are seeing old abandoned mines having a lot of new activity. Would be a nice run to watch though.

[68Camaro]

I think if silver goes much higher than 60 an ounce then those mines that are closed would open up and more silver and other PM's would come on the market which messes up his ratio argument. I know here in the maritime provinces we are seeing old abandoned mines having a lot of new activity. Would be a nice run to watch though.

Sure, it will find a new equilibrium. It will go up and down. It'll hit a peak, then drop as any overbought commodity would normally. Then drop further when new supply comes on, and some people sell out. Then go up when supply can't meet demand, as silver gets harder and harder to find and mine. For the long-haul, it's only going up. Just don't buy in the peaks and sell in the troughs.

[Mossy]

Just don't buy in the peaks and sell in the troughs.

I got that about perfected, man.

[Rosco]

I' m great at finding the peaks an often buy then but only Sell 40% Not that often so I've missed a few lows