Silver - Business, Finances and Investing Forum

Forgive me if this is the wrong forum, but are there any reasons at all not to pile my money into Silver? Everything I look at makes it seem like the nuts.

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02-02-2011 , 08:48 PM

emet

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Care to share what those things are?

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02-02-2011 , 08:53 PM

FieryJustice

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USD constantly gets worse because they print as much of it as possible. Most major banks have shorted metals hard. Silver is better than gold because gold price:silver price ratio is way out of whack, there is less silver in the world than gold, silver is used in numerous industries, etc etc. The list goes on and on.

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02-02-2011 , 09:12 PM

emet

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Why do you think all the reasons you stated are not already reflected in today's price?

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02-02-2011 , 09:27 PM

mugatu668

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Imo the way to go if you are bullish on silver is in the juniors. I am in AG, GPRLF, AXU

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02-02-2011 , 09:43 PM

Aceuphisleev

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^^I would certainly recommend at least a small stake in these or other forms of silver, mostly for all the reasons OP stated. I don't know about piling everything into silver though...

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02-02-2011 , 09:46 PM

Henry17

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Sprott is very bullish on silver. I'm personally not a fan. I see the price ratio to gold correcting by gold plummeting more than by silver increasing in value.

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02-02-2011 , 09:46 PM

mugatu668

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I think palladium is an even better play tbh. Look at the long term chart of PAL vs palladium spot price

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02-02-2011 , 10:29 PM

burkoboy

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I wish gold would just split already i mean silver is only $30 and gold is $1400 silver is obv the better bet

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02-02-2011 , 11:25 PM

#10

FieryJustice

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Quote:

Originally Posted by emet

Why do you think all the reasons you stated are not already reflected in today's price?

This is a good question. I havent really thought about this.

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02-02-2011 , 11:29 PM

#11

Mrmusicrecorder

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Quote:

Originally Posted by burkoboy

I wish gold would just split already i mean silver is only $30 and gold is $1400 silver is obv the better bet

Long SLV short GLD has been making money for a lonnng time.

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02-02-2011 , 11:40 PM

#12

Mrmusicrecorder

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A little over 1 billion ounces above ground in bullion form. There is a shortage of physical supply. This will become more evident as time goes on. Last year this thread would have been lol, now we see serious responses. SLV leaps, junior miners, but first thing is first, physical silver.

Yes there is 400-500% more physical gold above ground than silver. Yes there were over 45 billion ounces of silver mined throughout history and now we have one left up for grabs.

Silver is currently under priced.

Most silver close to the surface of the earth has already been mined and production comes almost exclusively as a byproduct of mining for other metals.

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02-02-2011 , 11:50 PM

#13

Mrmusicrecorder

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Quote:

Originally Posted by Henry17

Sprott is very bullish on silver. I'm personally not a fan. I see the price ratio to gold correcting by gold plummeting more than by silver increasing in value.

Why does gold plummet from here, the muni's don't get bailed out, no more euro bailouts, no QE3 (which would actually be QE4), no more purchases of MBS by the Fed, etc etc.

A total move away from the current monetary policy of the US, UK and Eurozone. Let asset prices collapse while the west "waits" for an organic recovery.

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02-03-2011 , 12:12 AM

#14

ff2017

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Quote:

Originally Posted by FieryJustice

Most major banks have shorted metals hard.

urban legend.

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Originally Posted by FieryJustice

there is less silver in the world than gold

I don't see how this can possibly be correct. Your average gold miner is digging out 200k (junior) to 6 million (senior) ounces a year. Silver miners are digging 25+ million ounces a year. There is a ton of silver supply coming onto the market within a few years as mines get built out. Silver Standard's Pirquitas and Pan American's Navidad projects are 2 10+ mil/year mines alone.

Last edited by ff2017; 02-03-2011 at 12:26 AM.

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02-03-2011 , 05:27 AM

#15

Mrmusicrecorder

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Quote:

Originally Posted by ff2017

can possibly be correct. Your average gold miner is digging out 200k (junior) to 6 million (senior) ounces a year. Silver miners are digging 25+ million ounces a year.

Apparently someone has no clue what they are talking about. It is undisputed (among the sane and informed market participant) that there is much more gold bullion above ground than silver bullion.

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02-03-2011 , 05:31 AM

#16

Mrmusicrecorder

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Quote:

Originally Posted by ff2017

There is a ton of silver supply coming onto the market within a few years as mines get built out. Silver Standard's Pirquitas and Pan American's Navidad projects are 2 10+ mil/year mines alone.

China's silver imports increased by nearly 400% last year. Buy Silver Standard and Pan American ftw.

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02-03-2011 , 06:44 AM

#17

mrbaseball

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Quote:

Originally Posted by burkoboy

I wish gold would just split already i mean silver is only $30 and gold is $1400 silver is obv the better bet

Split? I assume you are talking about GLD and SLV. They are both priced to one share for one ounce. If you don't like GLD share price there are about 10 other gold etfs to choose from which all track gold just the same.

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02-03-2011 , 07:25 AM

#18

Mrmusicrecorder

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Quote:

Originally Posted by mrbaseball

They are both priced to one share for one ounce.

Wrong beisbol, simple obviously wrong misconception. GLD intends to track 1/10th of the gold price. SLV tracks 1:1.

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02-03-2011 , 07:27 AM

#19

Mrmusicrecorder

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Quote:

Originally Posted by mugatu668

I think palladium is an even better play tbh. Look at the long term chart of PAL vs palladium spot price

Silver will crush palladium from these levels imo.

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02-03-2011 , 08:42 AM

#20

burkoboy

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I was joking.

Fwiw I'm long paas, BIG

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02-03-2011 , 09:05 AM

#21

mrbaseball

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Quote:

Originally Posted by Mrmusicrecorder

Wrong beisbol, simple obviously wrong misconception. GLD intends to track 1/10th of the gold price. SLV tracks 1:1.

Yeah sorry, GLD 10 shares per ounce but concept the same where other etfs use their own formula rather than trying to track actual price. Initially SLV was tracking 10 oz then they infact did split it to track one oz.

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02-03-2011 , 09:08 AM

#22

KevinPhwap

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Quote:

Originally Posted by FieryJustice

This is a good question. I havent really thought about this.

I would say this is due to many big players using the SLV instead of buying physical.

If the general public wakes up to how the dollar is devalued and moves just a small fraction of their portfolios to physical silver it won't take long for the price to skyrocket exponentially. There's just not enough physical to go around.

Don't move all your money into silver. Just look for other hard assets. I want some rental properties to go along with my silver. Even loading up on food that won't go bad and other items that you know you will use is smart.

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02-03-2011 , 09:19 AM

#23

ff2017

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Quote:

Originally Posted by Mrmusicrecorder

Apparently someone has no clue what they are talking about. It is undisputed (among the sane and informed market participant) that there is much more gold bullion above ground than silver bullion.

Must be you, cause he didn't write bullion and neither did I.