Silver is over $31 this morning.

Discussion in 'Economy' started by Mini 14, Jan 3, 2011.

  1. Mini 14
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    Mini 14 Senior Member

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    Life is good :)
     
  2. Ernie S.
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    Ernie S. Platinum Member

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    Life is VERY good. I bought 4 months ago at $20.50
    My $1225 gold ain't doing too bad at $1420, either
     
    Last edited: Jan 3, 2011
  3. editec
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    editec Mr. Forgot-it-All

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    I sense a bubble.
     
  4. uscitizen
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    uscitizen Senior Member

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    Yep several indications of more than one bubble.
     
  5. 007
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    007 Charter Member Supporting Member

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    Cool... I've got quite a bit of it in the form of old silver dollars.
     
  6. Ernie S.
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    Ernie S. Platinum Member

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    The bubble theory is foolish. There is about 8 times as much silver above ground as gold. Gold is a much less used industrial commodity, but yet the gold to silver price ratio is roughly 47:1. I see that ratio at about 30:1 by mid year. Seeing that gold is pretty damned stable in relationship to inflation, I see silver at 45-50 dollars/oz by the end of June. If the US economy continues to tank and gold reaches, say $1,800, silver could be $60/oz.
     
  7. Paulie
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    Paulie Platinum Member

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    I think you got those short time frames wrong, but your reasoning is right.
     
  8. Toro
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    Toro Diamond Member

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    There are about 1 billion ounces of silver above ground and 5.3 billion ounces of gold.
     
  9. editec
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    editec Mr. Forgot-it-All

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    I think the markets are overly concerned with inflation and that's why I think this is a bubble.

    When/if the economy starts to recover the price of oil is going to dampen that effect, thus inflation will be likewise dampened.

    In the long run I'm bullish on metals but I think the price is more based on emotiuonalism than rationalism, right now.
     
  10. Ernie S.
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    Ernie S. Platinum Member

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    I've seen that claim also, but more often read 8 to 9:1 Ag to Au.
     

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