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.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?
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?
Wouldn't it be more cost effective to buy the 1kg slabs?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?
Wouldn't it be more cost effective to buy the 1kg slabs?
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.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.
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.
Yeh that 1kg silver paperweight i have is starting to be worth a bitNice little xmas present a couple years ago
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.
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?
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