No the metals are obv going to do well when u have beggar thy neighbour

http://en.wikipedia.org/wiki/Beggar_thy_neighbour

but the reason that silver is up nearly 100% in 3 months instead of something more representative of actual risk is bc silver is a super small market that is over securitized and is literally being flooded with investment demand.

What would happen if the COMEX crashes while you have futures contracts? Would you lose the initial margin or even their value would go to 0 (as there would be no buyers)?

Do you really believe investments in SLV (or GLD) are driving up spot? I would tend to think that spot influences SLV or GLD not vice versa but eh, no idea how that kind of correlation would work.

U think SLV can trade 200mm shares / day without any impact on price? Seriously? And btw its not just SLV, theres like 6 silver ETFs or more.

I'm already up 15% on stuff I sold 2 days ago simply because SLV stopped being a freight train. It hasn't really even gone down.

I made this bet because I have no idea if silver is going up or down. I'm just willing to take in a little premium betting that it doesnt go to $60+ in three weeks.

probably going to initiate a short of 2 units slv/long 1 unit cad, 1 unit aud trade on monday with the intention of adding to a total of 8-10 units slv if prices move against me. need the weekend to think it over and see how it works with the rest of my portfolio.

calldownlight,

Maybe change your avatar before you make that trade on monday. Wouldn't wanna have any more random coincidences cuz two yowserr falls/fails like that would be too much for me to handle.

cliffs, ur avatar is bad omen for shorting silver.

Compared to you Yowserrs I make Stephen Hawking look like a ******ed grade schooler. You have no point, no reasoning, no chance, no ability to answer questions that would take a large scope of knowledge regarding your latest choice of "expertise."

Yes QE2 and the entire continent of Asia had no part in the rise in silver.

Clowns gonna be clownish.

SLV has never traded 200m shares a day, ever. The recent vol spikes you are referring to are started on April 25th with silver between $46-$47. SLV has gained about $1/share in that time.

What you said was not only wrong, but ignorant of the facts that are easily accessible to you.

Oh really.

Yesterday...
In the week where you believe SLV almost completely (with other etfs) drove the price, you totally ignore the LCNS lost over 10,000 contacts, which was roughly 20% of their short position. Short covering has a great influence on the price and the CME margin hike which coincided with a sharp correction.

There is so much you are ignoring. Gotta go. I'll rake you over the coals if you want to honestly discuss this any further.

Have a good day.

Wait....what?

I agree with that somewhat. I liken this to 2005-06 with all the mortgage ads and get rich quick schemes in real estate. Just replace house buying and mortgage refinance and replace with all the gold/silver ads and it looks similar to me. And we all know how the housing market has ended up.I think there will be a correction, it is just a matter of when and how bad. This just looks too much like a bubble to me.

I think it's more like the Beanie Baby market. They were all the rage for a while and people would do anything to get them. They had a huge secondary market and rare items went for insane prices. There were kiosks and shops that bought and traded them and people collected them expecting to cash in big. We all know how the beanie baby market ended up.

Beanie babies haven't been used for thousands of years as money and in tools, not so sure about that analogy...

I do wonder with all the gold / silver ads now, but the difference I see is people aren't selling the gold- almost all the commercials I hear companies want to buy your gold, presumably because average grandmas have no idea their 1oz coin is worth $1500 (cash4gold pays like 20-30% of spot)... I would be more worried about a bubble if people kept telling me to buy their gold coins, rather than buying them from me like in housing it was buy houses gogogo... But maybe all these companies just buy and flip for the cash right away... Two sides make a market

It is just totally a speculator's market at these levels with the price now 100% dependent on investment demand. Except for the long term price having to be above the cost of production, there's no EPS or anything that supports a price of $25 vs. $75 vs. $750. Even at $750/oz, the bulls would still be saying 'to da moon!'. I thought it would get to $60 before a pullback but it's struggled to overcome 50 for a week now. That's practically an age in Silver time, which could imply a big drop is coming as the gamblers get impatient or it could prove to be a strong basing for further gains.

Anyway, off to check out the morning garage sales. Maybe I'll hit the jackpot and pick up a gaudy 1lb silver picture frame for $5 or $10.

Easy credit caused the housing bubble. More scrutinized credit at fixed rate terms=less building, less seconadary market sales, less refnancing and more srealistic pricing.

Silver and other PM's are being used as a replacement for fiat currency and not credit.

Pretty sure the definition of a bubble involves mania. ie. almost nobody expects the price to fall. If a bunch of losers on 2p2 are calling a top then I feel quite comfortable with my position.

A little over a decade ago there were a bunch of people that called the .com bubble.

Unfortunately, they were about a year+ too early and all went broke shorting it. oops

I was super young and collected beanie babies when that happened.

I vividly remember that EVERY store was selling them. ****ing hallmark, sports memorabilia stores, grocery stores, book stores, kiosks, etc. It was insane.

Take a silver eagle out and go for a walk down main street USA and ask people what it is. They might know the material but that will be about it.

Hadn't heard of the sorter. My only concerns would be storage and transport.

10k in pennies is multiple tons I believe. You also have to return multiple tons of them back to the bank (and get them to accept them which probably isn't that hard, but they won't be happy).

Bump... Professor?

How much money does your oz of silver generate per year?

How much does your bit of paper generate each year?

Firstly I am not calling for a top. Actually I would like it to go to $100/oz. since I inherited over 1K silver eagles when my dad passed away in 2008 (when silver was $16/oz.). I have kept them because I like having them since the Fed's policies don't look like they are changing in the short term. I am just talking about the all the ads I see and hear about buying gold/silver due to the Fed policies. That is what I was referring to.

I wish I saw this thread in February