Quote:
Originally Posted by emet
I'm sure most of the big players trade silver in the futures market and its pretty much the public that uses SLV to gain exposure.
Institutional investors and retail "big players" trade SLV.
Quote:
I personally have no opinion on where silver is going but I'd like to point out that no one has given a legitimate reason for it go higher.
1. 16 out of the last 20 years silver demand exceeded silver supply and physical supply shortages are obviously in the not to distant future at this pace. To make matters worse the decrease in funding of precious metals operations in the 90's is still wreaking havoc on the industrial supply side's sustainability to some degree (though new mines are set to increase production, demand is rising to meet it).
2. Silver mining production is 8:1 against gold, the natural ratio of silver to gold in the earth's crust is 8:1 and the monetary ratio is 16:1 or 15:1 long used and based on Sir Issac Newton's 15.5:1 edict. We are currently seeing a GSR of 46.90 trending down from the low 80s and the last time we had a major bull market in the precious metals the GSR dipped below 20:1.
3. Most all easily accessible (economic) silver has been mined, 70% of silver comes from mining other metals (copper 25% Lead 30% Zinc 30% Gold 15% as rough estimates of those base metals in the 70%).
4. Excess "money printing" across the globe and steadily increasing appetite for commodities in emerging and advanced economies.
5. Comex has no way of ever making good on their contracts with physical silver, just as of the last (Jan 28th) COT report silver shorts would need over 300,000,000oz to cover and roughly the annual mining production is traded.
7. Silver vs LCNS have completely diverged and as the price broke $24. The last time this happened was the start of a very bullish move nearly doubling in 2 years. It is quite possible that this move will be greater as the environment is less sound today.
8. I said the same sh** last year except #7(which is very bullish) and we are up 70%.
I could go on for a while... just off the domeslot
Quote:
Originally Posted by TylerMes
Freakin the problem is that fact was true 50 years ago as well as today. Like emet suggests in the last post why are we to believe this isn't already priced in, what thesis going forward will propel silver to 70 or gold to 2000? and yea perhaps silver is set to outperform gold, but that doesn't imply either are going to outperform some nonmetal asset.
Maybe you can answer your own questions. Why have these two precious metals outperformed the market for a decade? Why have these metals gone up at almost equal percentages in all major currencies?
Hint hint (devaluation).
Quote:
and yea buying silver at 6/oz sounds genius but so does buying apple, dell, berkshire etc 10-20 years ago.
So you wouldn't buy apple or berkshire at $28.87...?
A lot of noobs ITT, hope I helped.