What the hell is happening to gold and silver?

[Seraphim]

Only the companies that are forced to liquidate will do so (I.e bankruptcy).

Most of the silver consumers will not relinquish their physical supplies.

If silver gets to 28$ (or something of the like), don't be surprised to see 10$ premiums for the physical stuff.

I'll say this, the growing monetary/investment demand for silver is not slowing down, long term fundementals are fantastic.

Gold is the safer play from a day to day volatility stand point. Silver is still the real opportunity metal as far as I'm concerned.

buy gold, industrial demand for silver will evaporate

 

[outspoken]

Hey seraphim, do have any disclaimers like you work for apmex silver division or anything? Based on you posts, you either sell the shinny stuff or have a iron clad garage filled to the brim with sliver.

 

[cubical]

Only the companies that are forced to liquidate will do so (I.e bankruptcy).

Most of the silver consumers will not relinquish their physical supplies.

If silver gets to 28$ (or something of the like), don't be surprised to see 10$ premiums for the physical stuff.

I'll say this, the growing monetary/investment demand for silver is not slowing down, long term fundementals are fantastic.

Gold is the safer play from a day to day volatility stand point. Silver is still the real opportunity metal as far as I'm concerned.

The higher silver goes, the less demand comes from industry. Industry demand dwarfs investments/coins. Until I see Industrial demand shrink significantly, I will be only buying gold. But make no mistake, I do own some silver and I think it goes much higher eventually, I just would rather be in gold right now.

 

[pmbug]

When the day comes that gold is remonetized, silver investment demand will go through the roof. Gold will lead the way and is likely the safer play, but eventually silver is going to outshine it IMO. There will be a lot of volatility before that day comes though.

 

[Athan]

A lot of users here were expecting this. I actually read their opinions here that it was going to have a small bust two weeks ago. Its just realignment issues. Daily trader nonsense and maybe some commodity dumping. Nothing long term is going on. Its going to recover with strong gains later with the additional b.s. by the Fed they are doing currently as well as the Euro situation. Just relax.

 

[Deft9]

Deflationist Mish says "Austrian minded folks who fail to understand the importance of credit and how little the Fed can do to revive it have blown the call as well."

Since the bulk of our money supply is created from bank credit, when people are paying down debt and banks aren't lending, the money supply is contracting. The inflationist view is that the Fed will overcome this contraction of the money supply with QE. I think Mish doesn't appreciate the fact the the weak economy means lower tax revenues and ballooning deficits. I think the Fed's printing presses are going to be very busy in the next few years. Oddly enough Mish still recommends gold.

Also Europe is falling apart, so money is fleeing to the USD and bonds for safety. I cannot explain a 1-day 11% drop in silver. It's been a very volatile investment for me.

http://globaleconomicanalysis.blogs...inflation-about-that-2011.html?x#echocomments

 

[Jeez]

The higher silver goes, the less demand comes from industry. Industry demand dwarfs investments/coins. Until I see Industrial demand shrink significantly, I will be only buying gold. But make no mistake, I do own some silver and I think it goes much higher eventually, I just would rather be in gold right now.

People often forget the ouput side the cost to mine gold is at around 500 oz (2009) where as silver is around 5 oz. Buying silver for diversification is good but I would not buy as much silver in value ad gold (80-20).

 

[legion]

Oddly enough Mish still recommends gold.

Gold will retain its purchasing power in a deflationary environment, and is a good hedge against a currency collapse which may still happen some time out in the unforeseeable future.

 

[The Freethinker]

Silver around 32.70/oz right now.

 

[JasonC]

And I bought AGQ at 200 a share.... ouch.. The money in my account is in there for the long term, so I am trying to decide if I should dump my AGQ at a loss and buy back in near the bottom or just hold onto it and ride out this volatility. I should've set a darn stop loss order, but I got sloppy and have been so busy this week. Damn central banks......

 

[Seraphim]

Neither.

I own a bit. Nothing substancial. I'm loving this drop, I can buy more.

Hey seraphim, do have any disclaimers like you work for apmex silver division or anything? Based on you posts, you either sell the shinny stuff or have a iron clad garage filled to the brim with sliver.

 

[specsaregood]

Gold is the safer play from a day to day volatility stand point. Silver is still the real opportunity metal as far as I'm concerned.

I will be only buying gold. But make no mistake, I do own some silver and I think it goes much higher eventually, I just would rather be in gold right now.

I've always been a 1:1 buyer of both in terms of USD. eg: when I buy $1000USD of Gold I buy $1000USD worth of Silver
that way i get the safe play and the opportunity play. I've always been a bet hedger though.

My target for this dip is $20, when it hits it I'll start stacking more.

 

[Seraphim]

26$ for me.

I've always been a 1:1 buyer of both in terms of USD. eg: when I buy $1000USD of Gold I buy $1000USD worth of Silver
that way i get the safe play and the opportunity play. I've always been a bet hedger though.

My target for this dip is $20, when it hits it I'll start stacking more.

 

[specsaregood]

26$ for me.

Ah, a pessimist.

 

[Seraphim]

Additionally, please check the action of Palladium:

http://www.kitco.com/kitco-gold-index.html


If this were a true industrial sell off of silver, palladium would be getting smacked as much if not more. It is not.

Palladium is almost entirely industrial. Best performing PM right now.

Silvers action is much deeper than industrial right now.

The higher silver goes, the less demand comes from industry. Industry demand dwarfs investments/coins. Until I see Industrial demand shrink significantly, I will be only buying gold. But make no mistake, I do own some silver and I think it goes much higher eventually, I just would rather be in gold right now.

 

[Seraphim]

Unfortunately I have other things I need must spend the money on, I may not be able to buy any...Very disapointed...

Ah, a pessimist.

 

[UWDude]

$30 and change is good enough for me. I'm loading up.

 

[TCE]

Starting to trend up a bit, up $0.38 from the low.

 

[StilesBC]

Starting to trend up a bit, up $0.38 from the low.

Uhh, 45 minutes does not a trend make.

Welcome to deflation version 2.0. But this time there is no political appetite for bailouts and no remaining bullets in the Fed's gun.

Got liquidity?

 

[psi2941]

The higher silver goes, the less demand comes from industry. Industry demand dwarfs investments/coins. Until I see Industrial demand shrink significantly, I will be only buying gold. But make no mistake, I do own some silver and I think it goes much higher eventually, I just would rather be in gold right now.

But don't u think the gold to silver ratio is out of whack?