Silver price discussion and analysis

[damien275x]

Re: SILVER

Question - Is there any point buying silver if silver is priced in US dollars?
Price is going up while the USD goes down, but what does that mean for us in AUS? No profit?

 

[tothemax6]

Re: SILVER

Question - Is there any point buying silver if silver is priced in US dollars?
Price is going up while the USD goes down, but what does that mean for us in AUS? No profit?

The idea is that when the inflation starts to take off in foreign currencies, the demand for silver and gold as a money in those countries will take off too (as they offer inflation protection). Since Australia and consumers from other countries are all competing for the same stock of silver, the price must go up in AUD as well, due to the increased demand. The price will of course go up more in USD, EUR, JPY etc, due to the falling values of those currencies.

It is possible to buy the silver with USD indirectly, as many FX brokers offer "XAG/USD". Buying XAG/USD buys the silver with borrowed USD, using the AUD in your account as margin.

 

[explod]

Re: SILVER

Question - Is there any point buying silver if silver is priced in US dollars?
Price is going up while the USD goes down, but what does that mean for us in AUS? No profit?

I have, and have also encouraged the rest of the family to buy 1966 silver 50 cent coins which contain 80% silver.

Back when we began about 2004 they were about 3 dollars each, I purchased a large amount three years ago at $5.50 and now they are worth about $11

In my view with the printing of money which as the big part of inflation it makes little difference overall.

So to save your spare money buy some physical silver every now and again. It adds up.

I buy direct over the counter at Wrights or Davis in Melbourne but you will see plenty still on ebay too.

 

[tothemax6]

Re: SILVER

I have, and have also encouraged the rest of the family to buy 1966 silver 50 cent coins which contain 80% silver.
Back when we began about 2004 they were about 3 dollars each, I purchased a large amount three years ago at $5.50 and now they are worth about $11
In my view with the printing of money which as the big part of inflation it makes little difference overall.
So to save your spare money buy some physical silver every now and again. It adds up.
I buy direct over the counter at Wrights or Davis in Melbourne but you will see plenty still on ebay too.

Wouldn't it be more cost effective to buy the 1kg slabs?

 

[Bullion Money]

Re: SILVER

Wouldn't it be more cost effective to buy the 1kg slabs?

Its good to have a bit of variety in both silver and gold.

Silver 1kg bars are great now but if Silver keeps going the way it is, the average investor will find it difficult to afford the 1kg bars.

Also for liquidity purpose its nice to have small denoms of gold/silver in case you need to offload quickly.

While finding a buyer for 1kg of gold it not difficult but you will find for 1oz or 10gram buyers are lined up far and long...

 

[explod]

Re: SILVER

Wouldn't it be more cost effective to buy the 1kg slabs?

I initially purchased 5 kilo bars within my super fund back in 05 and since then 1 kilo bars. But the smaller denominations are good for the Grandchildren/teenager group to get the idea and to save as well.

I am also of the school that believes that like Argentina 30 years ago we are going to have a financial event soon that will mean all banks will lock up and no cash will be available. P/m coins will be very valuabe for needs such as food. However security issues are another matter as well and need to be considered.

Silver broke to a new 31 year high this morning and in my view there is not a lot of resistance now till we hit the old spike of $50

 

[electronicmaster]

Re: SILVER

The Silver Log (03.27.2011) Silver and Gold Analysis


Uploaded by endlessmountain on Mar 27, 2011

http://thesilverlog.blogspot.com

Word Jumble:
AAEEFFILMNOORSTY
Clue - Another way for saying "articles wanted" in classifieds

 

[tothemax6]

Re: SILVER

I am also of the school that believes that like Argentina 30 years ago we are going to have a financial event soon that will mean all banks will lock up and no cash will be available. P/m coins will be very valuabe for needs such as food. However security issues are another matter as well and need to be considered.

I don't see how this can be. If you look at the world interest rates, AUD is really good. If everywhere had currencies like AUD non of us would be investing in PMs. The inflation you fear is valid for citizens of the US, Japan, Europe, UK, who have been busily printing money like its a newspaper. I don't see the cause for fear over here.
Also, very few Australians today consider silver or gold to be a money, or even know there was a time when it was. So I don't see them suddenly accepting it as tender.

 

[Bullion Money]

Re: SILVER

I don't see how this can be. If you look at the world interest rates, AUD is really good. If everywhere had currencies like AUD non of us would be investing in PMs. The inflation you fear is valid for citizens of the US, Japan, Europe, UK, who have been busily printing money like its a newspaper. I don't see the cause for fear over here.
Also, very few Australians today consider silver or gold to be a money, or even know there was a time when it was. So I don't see them suddenly accepting it as tender.

Oh my friend soon you will, soon you will. 10-15 years ago not many average investors were buying shares, now its normal day talk.
All a circle.
When World Was hitting Germany not many people were buying gold/silver but those who did were extremely rich in a very short time...

 

[GumbyLearner]

Re: SILVER

Will 'How much for cash?' become an old outdated antiquated adage? :

Bullish outlook for silver on surging industrial demand -Silver Institute/GFMS

A report released by the Silver Institute says silver's industrial uses are the largest component of silver fabrication demand, and should continue to rise sharply by 2015.

Author: Dorothy Kosich
Posted: Tuesday , 29 Mar 2011

RENO, NV -

A GFMS report for the Silver Institute predicts a bullish picture for the future of industrial silver demand with a record high of 665.9 million ounces in 2015.

READ MORE HERE -> http://www.mineweb.com/mineweb/view/mineweb/en/page32?oid=123886&sn=Detail&pid=102055

 

[sinner]

Re: SILVER

I am not posting much in the gold and silver threads anymore mainly due to the content of other posters.

But this one was too awesome not to share:

http://seekingalpha.com/article/256675-silver-wheaton-ceo-not-thinking-about-hedging-silver-until-50

Silver Wheaton CEO Not Thinking About Hedging Silver Until $50

The number $50 per ounce appeared in another discussion about silver. I first came across this target in James Turk’s theory about three stages for silver’s bull market with stage 2 beginning at $50. This time $50/ounce came up in an interview with Silver Wheaton’s CEO, Peter Barnes, as he discussed SLW’s earnings results on CNBC (video below).

Barnes noted that some “reputable banks” have made predictions for silver to hit $50/ounce by the end of the year. He thinks silver will definitely go through $50 in the next 2-3 years, but it “could be quicker.” Barnes’s bullishness was confirmed when he stated that hedging the company’s silver is nowhere on the horizon; hedging might be considered once silver hits $50.

 

[prawn_86]

Re: SILVER

Yeh that 1kg silver paperweight i have is starting to be worth a bit Nice little xmas present a couple years ago

 

[sinner]

Re: SILVER

Yeh that 1kg silver paperweight i have is starting to be worth a bit Nice little xmas present a couple years ago

Nice one. Net notional risk on XMAS presents, $0!

Personally with these levels in the GOLD:SILVER ratio, I will be converting most of the silver I accumulated since Apr 2009 (a lot, all unleveraged) back into physical gold and holding a much smaller silver position.

Maybe the ratio continues to decline from here, I am still ok with my decision and will just defer silver purchases in lieu of gold purchases: for the first time in ages and ages gold has started to become cheap in terms of silver. Happy to take advantage while it remains in effect.

 

[explod]

Re: SILVER

Industial demand on the rise.

http://resourceinvestingnews.com/14749-report-the-future-of-silver-industrial-demand.html

On the gold/silver ratio as mentioned above it has come a long way down in the last year or so. However it is still a bit above the mean and it has a lot of buying momentum at the moment. As a trend follower, I believe on this alone that we will not see a blow off till silver goes to its lower ratio of about 15 to 1. Till then I am happy to hold tight.

Notice Ron Paul is upset at a shortage of bullion coins, says it is not good enough so is pushing for a US Senate enquiry. The attention to this point could be interesting.

 

[DB008]

Re: SILVER

Thanks for that article explod.

 

[damien275x]

Re: SILVER

I also think there is going to be a big currency crisis in the short term future
I just bought 20,000 of silver. It's kind of scary being 21 going against the advice of everyone I know but I have done my research and I fully believe everyone else is wrong this time. Hopefully will come out on top.

 

[damien275x]

Re: SILVER

I also think there is going to be a big currency crisis in the short term future
I just bought 20,000 of silver. It's kind of scary being 21 going against the advice of everyone I know but I have done my research and I fully believe everyone else is wrong this time. Hopefully will come out on top.

Also - because i'm just randomly buying silver off the net here and there
AShould you declare capital gains when you sell it? Or just sell it for cash in small amounts

 

[sinner]

Re: SILVER

On the gold/silver ratio as mentioned above it has come a long way down in the last year or so. However it is still a bit above the mean and it has a lot of buying momentum at the moment. As a trend follower, I believe on this alone that we will not see a blow off till silver goes to its lower ratio of about 15 to 1. Till then I am happy to hold tight.

explod, please provide basis for your claims:

1. Which mean are you referring to?
2. The ratio has not been 15:1 for a long time, on what basis do you believe there will be a blow off once the old (possibly DEFUNCT) ratio is reached?

 

[Mr Z]

Re: SILVER

20,000 oz... randomly... here and there... 21... circa 750K...

 

[Mr Z]

Re: SILVER

explod, please provide basis for your claims:

1. Which mean are you referring to?
2. The ratio has not been 15:1 for a long time, on what basis do you believe there will be a blow off once the old (possibly DEFUNCT) ratio is reached?

While there is no reason why it will not be seen again I can't see that there is any fundamental basis compelling that particular ratio. In times gone by when gold and silver where in a fixed monetary relationship I believe around 15:1 was chosen because it reflected the rough supply and mining ratio... also supposedly the ratio it exists in the earth (???) Mining tech has moved on and things have changed so why it should be relevant now I have no idea!

I am also not sure it is the mean...