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Old 04-26-2011, 01:40 PM   #21
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It's not as nonsensical as it appears. Silver is much more heavily used as an industrial commodity than gold. As a result one would expect not only the "hedge against Armageddon" appreciation one seeks in hard assets, but also the same type of speculation on economic recovery as we see in the oil market. Gold, on the other hand, is as likely to go *down* when the economy and markets seem to be stabilizing or improving.

Gold is more a pure play on the fears of apocalypse and devaluation of currency. Silver adds the "industrial commodity" aspect that gold mostly lacks.
The ability of silver to go both ways definitely gives it the edge over gold. It also helps that the price is within reach of commoners.

As long as the movie "US Government Gone Wild" (with the printing presses) is playing, people will hold the price of silver high. Fear is a strong force.
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Old 04-27-2011, 11:55 PM   #22
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Some fuel for the speculation fire....Around 1980, the Hunt brothers, a pair of oil billionaires decided to "corner" the silver market. The price spiked to about $50/oz, which I've read is currently about $130 inflation adjusted. The price then abruptly did an about face and it all ended with the Hunt's bankrupt.

Could be lots of room to run still. If I had a bunch of silver I'd have a tough time sitting on it to $130.
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Old 04-28-2011, 12:32 AM   #23
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Some fuel for the speculation fire....Around 1980, the Hunt brothers, a pair of oil billionaires decided to "corner" the silver market. The price spiked to about $50/oz, which I've read is currently about $130 inflation adjusted. The price then abruptly did an about face and it all ended with the Hunt's bankrupt.

Could be lots of room to run still. If I had a bunch of silver I'd have a tough time sitting on it to $130.
One of the factors contributing to the fall from the 1980 high was COMEX (I think I have the right exchange?) increasing the margin requirements on the Hunt brothers' positions in silver futures - they couldn't meet the resulting margin calls and had to sell. It was a lesson in not trying to be bigger than the house.

I'm having a tough time staying in now.
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Old 05-05-2011, 09:35 AM   #24
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Where do you think silver is going in the next 12 months? I think it is going way up, but I have not bought any yet. I would buy into an ETF, like SLV or SLW if I were to "get in on the action".

From what I have read on the internet, the pressure upwards in silver is from Joe Sixpacks who are afraid of hyperinflation, and who think there is more upside in silver than gold.
With the big decline the past week or so.... it looks like if you bought you got killed....
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Old 05-05-2011, 10:43 AM   #25
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Beware of billionaires going short:

Mexican Billionaire Carlos Slim Flips To Shorting Silver
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Old 05-05-2011, 10:47 AM   #26
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Agree. Wish I had bought ZSL double short ETF. Thought about it ...but after 2 days of big declines in silver...who knew it would continue? SLV was 28 ish in January/February. Bought it and sold in mid 30's as I didn't trust it. Computers, hedge funds...are "in control".
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Old 05-05-2011, 11:11 AM   #27
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Sure looks like the bubble has popped. Oh no, the sky is falling! $36.86 right now
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Old 05-05-2011, 11:21 AM   #28
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Kind of a different reason for him doing it.... locking in the price for his production... not a speculation play. My bold on the quote... Also, it seems lie a low price considering...


"Notably, the media has recently reported that Carlos Slim, the Mexican billionaire who is considered one of the 10 richest people in the world, has for the past few weeks been selling silver futures in an attempt to hedge production of the silver mine that he owns. According to recent filings from the Mexican stock market, as of April 30th his mining company reported a short silver swaps position of 34.478 million ounces at $25.06 per ounce (average)."
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Old 05-05-2011, 11:37 AM   #29
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Kind of a different reason for him doing it.... locking in the price for his production... not a speculation play. My bold on the quote... Also, it seems lie a low price considering...


"Notably, the media has recently reported that Carlos Slim, the Mexican billionaire who is considered one of the 10 richest people in the world, has for the past few weeks been selling silver futures in an attempt to hedge production of the silver mine that he owns. According to recent filings from the Mexican stock market, as of April 30th his mining company reported a short silver swaps position of 34.478 million ounces at $25.06 per ounce (average)."
The reason doesn't matter, the point is he is a market mover and may be behind this drop.
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Old 05-05-2011, 12:34 PM   #30
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Where do you think silver is going in the next 12 months? I think it is going way up, but I have not bought any yet. I would buy into an ETF, like SLV or SLW if I were to "get in on the action".

From what I have read on the internet, the pressure upwards in silver is from Joe Sixpacks who are afraid of hyperinflation, and who think there is more upside in silver than gold.
I have no idea where silver is going, but if it was in my portfolio I would have been rebalancing as it went up
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Old 05-05-2011, 12:59 PM   #31
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If we experience a financial apocalypse, the "industrial commodity" aspect of silver, envisioned by some, might be difficult to exploit because under the apocalypse scenerio industrial/economic activity is likely to plummet and thus significantly reduce demand. If we truely faced financial Armageddon, I'd prefer gold (as opposed to silver). However, I suspect if Armageddon arrives (and I have a stash of gold), someone will just put a bullet in my head and take my gold . . . so, rather than bet on the apocalypse, I'm going to make my plans on the assumption that we avoid the worst case scenerio.
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Old 05-05-2011, 01:00 PM   #32
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I prefer stockpiling something more useful.
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Old 05-05-2011, 01:13 PM   #33
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I prefer stockpiling something more useful.
Yes, but not recommended for burial in the backyard or your mattress.
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Old 05-05-2011, 02:20 PM   #34
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The reason doesn't matter, the point is he is a market mover and may be behind this drop.
From what I read it is the new margin requirements that are behind the drop...
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Old 05-05-2011, 05:52 PM   #35
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I have avoided gold and silver because once one gets past the intrinsic value of what is can be used for (real demand).... Industrial, electronics, jewelry... The rest is was speculation.. a hedge for other assets.
That's new to me. I didn't know that jewelry has an intrinsic value.
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Old 06-13-2011, 05:32 PM   #36
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I think you are correct that silver will continue to appreciate in the future.

If you want to make considerable gains, I recommend owning miners.

I would recommend:

First Majestic Silver (AG)

Great Panther (GPL)

Silver Wheaton (SLW) -not a miner but instead a royalty company.
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