Silver is over $31 this morning.

[Mini 14]

Life is good

 

[Ernie S.]

Life is VERY good. I bought 4 months ago at $20.50
My $1225 gold ain't doing too bad at $1420, either

 

[editec]

I sense a bubble.

 

[uscitizen]

Yep several indications of more than one bubble.

 

[007]

Cool... I've got quite a bit of it in the form of old silver dollars.

 

[Ernie S.]

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.

 

[Paulie]

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.

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

 

[Toro]

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.

There are about 1 billion ounces of silver above ground and 5.3 billion ounces of gold.

 

[editec]

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.

 

[Ernie S.]

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.

There are about 1 billion ounces of silver above ground and 5.3 billion ounces of gold.

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

 

[Dont Taz Me Bro]

I wanted to pick some up when it was around $16, but I didn't have the money set aside at the time. My dad grabbed some though.

 

[Sheldon]

If I had a time machine, I'd go back to when I was 18 and just put all my moneys into gold--which was only like 3k at the time but it'd be a lot more now.


/random thought

 

[westwall]

I see silver hitting 35 by the end of Feb. Gold will likewise continue to climb for awhile.

 

[william the wie]

There are many bubbles bonds, equities, real estate and possibly gold but not silver. Based on the increasing cost of recovering silver as used in high tech devices and the expanded use of those devices I like $2 in silver per $1 in gold. If the 10 year treasury gets to about 4% yield then bonds, equities and real estate are expected to crater. Last I heard the 10 year yielded about 3.5%.

Gold mining is an expensive process but Silver mining as such rarely happens it is a byproduct of mining of other metals such as Gold. Therefore if interest rates increase enough to make the carrying costs of Gold prohibitive the hoard will decrease dropping the price and mining activity but silver as an increasingly industrial metal in short supply will generally increase in price until one of these prices is reached:

Substitution price. Copper deposition, super conductors and aluminum foil as conductors and mercury in many current industrial uses can be substituted for silver in devices too large for a child to swallow. This price for silver is probably in the $100 per ounce range for all uses

Extraction price. Mining silver and taking out gold, copper or platinum group metals as byproducts is the least likely price to be reached at $150-175 per ounce.

Recovery price. Recovery of silver from junked equipment is probably profitable at this time with a price of $60-80 per ounce and some substitution effects.

 

[Toro]

Silver is under $30 this morning.

Here is an iron-clad maxim of investing - Cheerleading makes the Trading Gods angry, and they punish those who do so.