Silver price discussion and analysis

Amalgam · 16 October 2011

tothemax6 said:
True, but this is not to say that the silver standard was superior. As economies developed in the West, there was a default movement away from the silver standard and towards the gold standard (until the later was destroyed by politicians). This is due to the increasing transaction volumes that accompany economic growth giving gold the edge (higher 'value density'), and the higher inflation rate of silver (easier and more voluminous mining) making it a lesser quality money.

True, but also at the same time in history, China was running large trade surpluses, exporting goods to the West, and thus draining the world of silver. Would anyone like to parallels with the current situation? In the mid 19th century, this of course ended with the Opium Wars and the collapse of Chinese society, from which they have only in recent decades recovered from.

Mr Z said:
I have spent too much time over the years pointing out to people that small product shortage is not a silver shortage.

Indeed - I wasn't pointing it out as a tin foil observer crying that the world has run out of silver, just that it's indicative of a very large increase in demand for physical bullion.

choofer · 16 October 2011

Mr Z said:
It's true but it will be hard to convince some people of that.

When you consider the value of gold an the average wage in places like India and China I think you will see many opting for silver as the price of the metals rise. Anecdotally many Americans are making that choice despite much higher levels of income.

LOL... no you don't eat silver silly! You swap it for stuff you can eat, that is how money works

Why defending yourself is greed I will never know!

Now I will retire to my cave to chew on some Bison... CYA!

Bison Burgers!! Sounds great dude. I'm in my cave munching on some wild boar. Very nice thank-you
cheers bro

Mr Z · 17 October 2011

Amalgam said:
Indeed - I wasn't pointing it out as a tin foil observer crying that the world has run out of silver, just that it's indicative of a very large increase in demand for physical bullion.

Yes.. no... I wasn't suggesting that you where, just that it is a feature of these high demand periods and that this is the only one that I remember where the dip has been bought with such aggression. A very interesting development all in all!

tothemax6 · 18 October 2011

Amalgam said:
True, but also at the same time in history, China was running large trade surpluses, exporting goods to the West, and thus draining the world of silver. Would anyone like to parallels with the current situation?

No, I can't see how that parallels any current situation, assuming it was true.

Amalgam said:
In the mid 19th century, this of course ended with the Opium Wars and the collapse of Chinese society, from which they have only in recent decades recovered from.

Chuckle, 'I guess I don't need this rubbish any more' <throws out east asia history book>.

Mr Z · 23 October 2011

Some manipulation fun!

Mr Z · 23 October 2011

One day Bill will learn how to construct a logical argument. GATA always seem to shoot at their feet every time they get in these situations.

You have to love the Irish moderator!

Definition --> A rhetorical question is a figure of speech in the form of a question posed for its persuasive effect without the expectation of a reply.

To be sure, to be sure!

Mr Z · 2 November 2011

Apparently the Asians don't like silver...

... so someone was saying, anywhooo --->

Chinese Silver Investment Going Parabolic

... bring on the hedging.

DB008 · 3 November 2011

Re: Some manipulation fun!

Mr Z said:

Here we go...

Mr Z · 6 November 2011

Manipulation anyone?

Bart Chilton on KWN

Mr Z · 6 November 2011

Re: Some manipulation fun!

DB008 said:
Here we go...

LOL... that is what I mean't to post! Who'd thunk they did a trailer? I should have watched it first eh?

explod · 8 November 2011

Mr Z

As for the Australian government confiscating gold, the law already exists to allow for this and all that is required is the governments will to exercise it. Silver is another story but in Australia you can be asked to hand in your gold... to my knowledge it has never been done but???!

Mr Z, on the gold thread you made the above comment earlier this evening.

I have favoured silver for my portfolio for reasons of possible confiscation, and of course as I believe the ratio to gold and silver will reduce over time.

However I take interest in your comment above saying "Silver is another story", do you infer anything? , such as possibilites of confiscation.

Mr Z · 8 November 2011

They'd need a new law to do it so it is hard to see that it would be worth it. I doubt that they'd even go for the gold these days, I think that the law is a relic from when gold played a bigger role in the system. Sure the law is there but I'd say that is the end of the story.

explod · 8 November 2011

Mr Z said:
They'd need a new law to do it so it is hard to see that it would be worth it. I doubt that they'd even go for the gold these days, I think that the law is a relic from when gold played a bigger role in the system. Sure the law is there but I'd say that is the end of the story.

Thanks Z, we do live in an intersting time.

skyQuake · 8 November 2011

explod said:
Mr Z, on the gold thread you made the above comment earlier this evening.

I have favoured silver for my portfolio for reasons of possible confiscation, and of course as I believe the ratio to gold and silver will reduce over time.

However I take interest in your comment above saying "Silver is another story", do you infer anything? , such as possibilites of confiscation.

Link to the confiscation post or law? Couldnt find it in the thread. Thanks

Mr Z · 9 November 2011

skyQuake said:
Link to the confiscation post or law? Couldnt find it in the thread. Thanks

Please? and it is in the gold thread.

DB008 · 9 November 2011

Mr Z said:
Please? and it is in the gold thread.

Somewhere in Part 4 of the Banking Act 1959 - C2011C00863

http://www.comlaw.gov.au/Details/C2011C00863/Html/Text#_Toc307311846

Bron Suchecki · 9 November 2011

DB008 said:
Somewhere in Part 4 of the Banking Act 1959 - C2011C00863

http://www.comlaw.gov.au/Details/C2011C00863/Html/Text#_Toc307311846

It starts at Section 41 in Part 4, see my blog post on it and discussion of its implications http://goldchat.blogspot.com/2008/11/australian-gold-confiscation.html

My view is silver is not explicitly mentioned and I do not think it will be confiscated as the reason Govt wants gold is to use it to settle international transactions and it is impractical to transport silver around the world compared to gold. Central bankers hold gold, they don't hold silver.

DB008 · 9 November 2011

Bron Suchecki said:
It starts at Section 41 in Part 4, see my blog post on it and discussion of its implications http://goldchat.blogspot.com/2008/11/australian-gold-confiscation.html

My view is silver is not explicitly mentioned and I do not think it will be confiscated as the reason Govt wants gold is to use it to settle international transactions and it is impractical to transport silver around the world compared to gold. Central bankers hold gold, they don't hold silver.

So then the question becomes, "would a situation ever arise where something like this (Part 4, Section 41) would be acted upon by any current Government of Australia?"

Mr Z · 9 November 2011

It is just not probable IMO, especially when you consider that in the unlikely event they decide it is needed they could just mandate that the government gets first refusal on all domestic gold production. That would probably yield more than hassling the voting public.

Bron Suchecki · 11 November 2011

I agree with Mr Z, first step is just to put special tax on gold mine production, then mandate sale of mine gold to Govt and/or nationalisation. The amount of gold we sell domestically vs export is small and thus my view is that there just isn't any significant amount of privately held gold in Australia worth compuslorly acquiring.

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