The Price of Silver

[Market Harmony]

Sept, 2010 and $20 seems to be a tough price to break through. I don't think $20 will be much of an issue for Sept, 2011.

Any speculators want to guess the price of silver at year end, 2010? I say no lower than $18.75, but it could be much higher.

[Country]

IMHO, SILVER is consolidating here near $20. When the overbought condition is worked off, either through time duration at this level or a small correction at lower levels, the spike higher sometime soon will astound us all.

[Rodebaugh]

I agree. Just curious to see if the price correction happens, what price will we see? High 18's may be to much?

[Jonflyfish]

In my opinion $22 handle is coming and would not surprise to see $25 in the not too distant future.
Will wake up one day within the next few years and smile at $100+

[wolvesdad]

No, and it wouldn't have surprised us 2 years ago either.

yet it hasn't come to fruition yet.
(2more)

[oober]

In my opinion $22 handle is coming and would not surprise to see $25 in the not too distant future.
Will wake up one day within the next few years and smile at $100+

But what will $100 buy in consumables at that time, what will gasoline be? Now mind you, I am a bull, but 1st and formost bullion is held for capital preservation, so the price of silver is irrelevent in the term of FRN's, no?

[blackrabbit]

In the past 10 years there has been 47% price increase in consumer goods due to inflation. I think silver could correct maybe even down into the 16 dollar range when the stock market takes another big dive, but I just don't think it will stay there. Inflation will continue as it is federal economic policy. Geithner is always publicly begging the Chinese to let their currency increase in value, and if this happens the dollar will go down even more. This is good for us as metal hoarders but bad as users of the dollar. You won't get rich unless a general precious metal mania takes hold, but you will retain wealth while you see most others lose theirs. I guess silver will end the year at 22.48.

[Quagmire]

"But what will $100 buy in consumables at that time, what will gasoline be? Now mind you, I am a bull, but 1st and formost bullion is held for capital preservation, so the price of silver is irrelevent in the term of FRN's, no?[quote][/quote]

The price of silver in terms of FRN is important. Just because silver increases in value dramatically does not necessarily mean that the dollar has lost an equal amount of value in that same time frame. Remember that silver is dramatically undervalued as a financial asset today and its price should increase relative to the dollar for this reason. It is definitely a misconception that one is only going to break even by holding precious metals.

[BamaJoe]

"But what will $100 buy in consumables at that time, what will gasoline be? Now mind you, I am a bull, but 1st and formost bullion is held for capital preservation, so the price of silver is irrelevent in the term of FRN's, no?

The price of silver in terms of FRN is important. Just because silver increases in value dramatically does not necessarily mean that the dollar has lost an equal amount of value in that same time frame. Remember that silver is dramatically undervalued as a financial asset today and its price should increase relative to the dollar for this reason. It is definitely a misconception that one is only going to break even by holding precious metals.

Exactly. Using Blackrabbit's figure of a 47% price increase of consumer goods in the past 10 years you would have done very well with PM's. I got heavy into PM's 9 years ago. The silver I bought under $5 an ounce has increased 400% and the gold bought in the neighborhood of $250 an ounce is right at an 500% increase. Of course at each higher price level people told me I was absolutely nuts to continue buying. I've been a buyer all the way up, am a buyer today, and see myself being a buyer at higher levels.

My approach is long term. I could care less what silver/gold does tomorrow or next week. If it drops it's just a little bonus so I can buy more than I could have if it had not dropped.

I don't try to play the ups and downs. I do know some who do and make some money that way. To be honest, while I've always been pretty good at long term trends, I generally suckwind at the short term timing. For most people and probably most on this board, this is the approach you should take - it take alot of time and knowledge to have a decent shot at making money on the short term plays.

[beauanderos]

I've been reading some articles that claim JPMorgan is shutting down it's proprietary metals trading desk. If this leads to the shorts covering that has to happen at some point, then hang onto your hat, Jack. There might be a few days of up twenty cents, up forty cents... but don't be too surprised if silver jumps up over a dollar in one day in the coming weeks

[silverinvestor]

Considering the U.S. mint still has the statement that they do not have the silver to make the Eagles and on their site, there is not a silver coin available, I would think the real situation of silver is coming to the forefront in the fact there is not the physical to match the longs. over 8 million longs have called in their orders, but are not getting delivery notices from the shorts yet for September. I would think the fracture of the silver Comex market is getting bigger and bigger. At some point, we may see not just cents up but dollars up in one day.

My first post here too. But glad I found this forum. I am very much interested in all that is happening in the metals.

[AGgressive Metal]

$20.15 on Kitco!!!!!!!!!!!!!!

Somewhat appropriately, I am watching John Nadler live at the Kitco eConference as I type this

[Market Harmony]

My USD holdings dropped 2.2% in value overnight.... well, I guess I mean that silver went up to $20.31 and gold to $1256. But, either way you look at it, I'd hate to hold USD.

I am often asked, "Why would I want to hold Gold and Silver?" My typical response is, "Why would you want to hold Dollars?" Based on their facial expressions, I can tell that this makes them sit back and think.

Once sheeple begin to buy into PMs, the prices could go much much higher. We really haven't seen anything, yet. PM holders are still a vast minority.

[silverinvestor]

Yes, only 1% of Americans own metals. Also I learned something new yesterday during the Kitco e-conference. David Morgan of silver-investor.com, said that the U.S. had no holdings of silver at all. I had not realized that. No wonder there is so much pressure against it in manipulation. Lets not even go to the U.S. holdings of gold in Fort Knox, because even Ron Paul in the conference said he is trying to get Fort Knox audited, but needs to find the support for it in Congress.

I love the price action today in silver. They are saying it is due to the highest amount going into SLV - (which is just paper). That is where the people of the U.S. have their metal holdings. Between GLD and SLV - which is leveraged 100 to 1 of paper to actual physical. Andrew Maguire revealed that to the CFTC - but they are still looking the other way. I have friends who have not listened to me about metals and they have brokers who keep them in stocks. I have told them, don't go to SLV or GLD - though the broker may advise it (what they make money on). So I have been researching what funds they can put their money in for metals.

Sprott is going to starting a silver fund a one to one parity of money to physical - it was suppose to start Oct. but funny SEC is holding it back, they hope to be able to start it in Nov. now. SEC is probably holding it back, because they know the physical isn't there. Sprott even said, he doesn't know if he can ever get all the physical for the initial start, I believe he is wanting to start it with 200 million.

But there is another one that is physical to match the money that is a good fund I have found, it is www.silver123.net., hopefully those who don't want to take physical etc. and only want funds, will not listen to the Cramers of the world. Here he is last week touting GLD and SLV.

http://www.youtube.com/watch?v=xCrAq7coQYg

Always do the opposite of Cramer - people have and made good money. You can't call in your physical either with SLV or GLD - people have been trying to and get the run around.

Metals is where it is at, and hopefully more and more will wake up and keep their existing wealth in tact, by investing in gold and silver. Though I favor silver more than gold. Higher percentage of increase to amount invested.

[silverinvestor]

$20.15 on Kitco!!!!!!!!!!!!!!

Somewhat appropriately, I am watching John Nadler live at the Kitco eConference as I type this

Question, What did you think of Nadler?

I watched every single presentation at Kitco during their e conference. I found Nadler said the opposite of everyone else and his information did not match all other information. Also he said that China did not want IMF gold and the Central banks did not want the IMF gold and that is why IMF had to take it to the open market! BUT that is not true. In fact Eric Sprott called the IMF asking to buy the gold that they were supposedly selling on the open market, but the IMF would not sell to them. China did say they had wanted the gold, yet again IMF did not sell it to them. I found Nadler to be the least believable of all presenters at the e conference. James Dines, Marc Faber, Ron Paul, David Morgan, Jay Taylor were my favorites - they told it like it is, they did not sugar coat anything. I just don't understand where Nadler gets his info.

[beauanderos]

Nadler is an idiot, I feel just a paid shill... a front man for JPMorgan atttempting to legitimize price movements with specious reasoning. On a brighter note... we're seeing strong upward momentum today with both gold and silver, the result I feel of the perception that perhaps the shorting manipulation is becoming dormant and pent-up buying sentiment is the response... of course there could be a bit of short-covering as well. In either case... Whoopee

[blackrabbit]

$20.45 and it's not even 9 AM here on the west coast. I think I will take a little bit of profits now.

[jtlee321]

Here is my hunch and it is loosely based on what happened in 2008. I think we will hit a high of around $21.00 and then we will see it fall down to around the $16.00 - $17.00 level again and hold there until spring. I would like to see it slip to $15.00 by late February and early March so that I can buy again. Once I am comfortable with my holdings then let her rip!!

[Country]

Let 'er Rip NOW!! IMHO, SILVER is going to go way beyond $22 this fall. Pullbacks will be short buying opportunities. GOLD is going above $1300 per ounce soon.

I look for SILVER to continue to move up faster than GOLD, reaching a SILVER/GOLD ratio of 50 or better by years end. At $1400 GOLD, achievable by the end of 2010, SILVER should be at least $28 by the end of 2010.

[Delawhere Jack]

Time once again to spread the silver out on the floor, strip down to my scivvies and roll around in it!
Not so much fun with the gold though, the plastic assay cards have sharp edges, and they tend to cut me in places I'd rather not mention....

[Jonflyfish]

Nothing much new to say. Charts still say that the $22 handle is still coming from when the original breakout was foreseen.

Cheers!

[1945v]

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)

In my opinion $22 handle is coming and would not surprise to see $25 in the not too distant future.
Will wake up one day within the next few years and smile at $100+

But what will $100 buy in consumables at that time, what will gasoline be? Now mind you, I am a bull, but 1st and formost bullion is held for capital preservation, so the price of silver is irrelevent in the term of FRN's, no?

[BamaJoe]

Time once again to spread the silver out on the floor, strip down to my scivvies and roll around in it!
Not so much fun with the gold though, the plastic assay cards have sharp edges, and they tend to cut me in places I'd rather not mention....

And here i thought I was the only one to do that.

[Copper Catcher]

Interesting Articles:

Despite Blatant Manipulation, Gold and Silver Top Resistance Points
http://news.coinupdate.com/despite-blat ... ints-0447/

Speculators still add to silver long positions: CFTC
http://www.commodityonline.com/marketmo ... 0-3-1.html

[Country]

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)

In my opinion $22 handle is coming and would not surprise to see $25 in the not too distant future.
Will wake up one day within the next few years and smile at $100+

But what will $100 buy in consumables at that time, what will gasoline be? Now mind you, I am a bull, but 1st and formost bullion is held for capital preservation, so the price of silver is irrelevent in the term of FRN's, no?

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.