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Thread: What is wrong with silver?

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  1. #11
    Quote Originally Posted by NoOneButPaul View Post
    Of course I could argue that the fact the Central Banks hold NO Silver actually makes it a better buy because it's much more difficult for them to manipulate it. They have to go through banks like JP Morgan to do so and even JPM can only manipulate it with their paper and not their actual silver reserves because they don't have as much as they claim. It's much harder for the central banks to manipulate silver than it is gold because they can just dump their own gold reserves on the market.

    Furthermore... as people start to try to protect themselves against inflation the first thing they'll run to is gold... and immediately they'll make the realization that Gold is too expensive for them (it's already much to expensive for the common man) and they will naturally run to the poor man's gold... Silver.

    And... if Gold does become money again then it's price will skyrocket and Silver's price will eventually go right along with it. At the historic 16-1 ratio Silver should be about 107$ today... if Gold goes up to say 4000$ then Silver should hit 250$

    What i'm getting at is the gains on Silver will end up being much greater because the flocking to gold has already begun with the Billionaires... the people have yet to flock to silver to protect themselves.
    The central banks and the "giants" as FOFOA calls them, which is the generationally super wealthy or the "super producers", are who establish what money is. It has always been gold. The fact they do not hold silver is not a plus, but a minus.

    There is no manipulation on the physical silver market. Just like we are seeing gas shortages because of price controls, we would be seeing physical silver shortages if in fact there was physical silver manipulation. There isn't and to keep saying there is makes the hard-money movement looks tin foil hatish.

    To say an item that is infinitely divisible is to expensive to buy in any quantity is just wrong. You can buy gold in grams or if need in 1/10ths of grams.

    On what time frame are you using to get your 16-1 ratio and why must it hold true today?

    Relatively to gold, silver's price largely set by industrial demand. Gold's price is arbitrary. It is arbitrary because it is real money. Also, it is not practical to have money based in a metal that will be consumed.

    So as a commodity silver may go higher(because of demand and/or inflation), but I do not believe it will go higher because it will turn into money again. If/when gold retains its status as the only real money, means its price must rise to replace the purchasing power of all currency today. FOFOA estimates 1oz will be worth about $55k in purchasing power of today's dollars. I do not see a similar move in silver.
    Last edited by cubical; 11-03-2012 at 02:15 PM.



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