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Thread: Do You Really Want A Higher Silver Price?

  1. #41

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    Quote Originally Posted by Curto View Post
    Good point, since 2008, gasoline and home heating oil are higher by only 250%. Another 50% gain will put them in bubble territory or are they already there?
    Yeah, after this bubble will burst expect $1.29 per gallon of gasoline. Lower industrial demand can force it even lower... sub dollar gas is coming...
    Everything I write in my posts is just my opinion.

  2. #42

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    Quote Originally Posted by slowdownandthink View Post
    OK - plenty of room to spare in my calculations. I'll cut it in half. I was just calculating based on a $5 spot price - and $5 was probably a bit earlier than 2005. But, either way, silver has WAY WAY WAY outpaced any other thing your average consumer would buy. That is a bubble in my opinion. And all bubbles get popped eventually. In my mind, it's really about that simple.
    you're right its a bubble, doesn't seem like you have much business left to do here... see ya later!

  3. #43
    Join Date
    Mar 2011
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    Quote Originally Posted by seascape195 View Post
    idk, I can't trust any information from those crooks, can you? I could be wrong/paranoid, but its my opinion and from my side of the fence, like I said, I don't trust anything they say, its all spoken with forked tongues and scripted information, fueled by politics and greed (ironically interchangeable terms too).

    But I still welcome your POV.
    I understand what you're saying. 7200 banks in the US, sure there is problems of oversight, especially in the HUGE multinational banking giants that have numerous operating subsidiaries. Glass Stegal broke down a lot of barriers and allowed banks to engage in non-traditional banking practices. Such as Insurance, Securites Sales, Mortgage origination and and securitization, interstate banking (offices outside the home state) and many many more. Keep in mind the majority of the banks have multiple regulators and are audited more frequently than any publicly traded corporation. Imiganine if you had a business and you had a minimum of 3 entities (regulators) telling you what you can and can't do, yet they keep changing the rules mostly to suit the large banks bc they have the powerful lobbyists. Some banks have more than 3 (the FDIC, the OCC, the OTS, the Fed, and the state banking regulators).

    So I understand you're blanket statement but a bank can't take the money and run. In fact, in many cases where the executive management are the only ones with stock options or private options like UAR's (unit apreciation rights), these execs get wiped out. They thought they would retire with their private stock in their bank...but now it's worth zero. Seen it happen dozens of times.

    I think your dislike of "bankers" should be geared towards the firms that received taxpayer money to stay in business then hand out huge bonuses and the like. These are the thiefs that are fleecing us, not the little community bank that fails. Those little banks had no choice, creditworth clients are banking with the big guys, they don't have enough branches to get deposits and cross sell other more profitable services. Just saying...I respect your opinion as well...just trying to help you differentiate the good guys from the bad.
    Last edited by Fusion; 05-13-2012 at 04:33 PM.

  4. #44

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    Silver's true value is driven by the likelihood that the financial system will experience a systemic collapse over the coming decade.

    You are correct in that we are in the middle of a deflationary crash, but because currency is fiat and can be produced in unlimited amounts at near-zero cost, the Bernank (and all other central banks) have been attempting to prevent the popping of the credit bubble by printing base money. So far, they have been successful, in that the overall money supply is still expanding in spite of the massive drop-off in lending. What the central banks have done is print an unprecedented amount of base money (currency) to make up for the massive decrease in credit money (loans), which has prevented the overall money supply from contracting precipitously and asset prices falling off a cliff, instigating a tsunami of bankruptcies and foreclosures which would further depress asset prices in a spiral of financial destruction that would be an order of magnitude worse than the Great Depression.

    Given enough QE, there is no theoretical reason why central banks cannot continue this process indefinitely, however at some point all of this extra currency is going to cause massive inflation in things that tend to be purchased with cash such as food and fuel, and also since base money forms the basis for loans, if lending does start to pick up again, the overall money supply could easily expand by many, many multiples very quickly leading to hyperinflation virtually overnight. The Bernank's game plan is potentially very, very unstable and has never been attempted before in financial history, so the results are unknown. The most likely outcome is continuing grinding deflation for years with an increasing scale of base money printing (QE4,5,6,etc), followed very suddenly by hyperinflation once consumer confidence finally results in a resumption of lending and consumer spending.

    In both of those scenarios, gold and silver will go to the moon and absolutely dwarf the returns on all other asset classes. The likelihood of the above scenario unfolding necessitates owning copious amounts of physical bullion in your own possession.







    Quote Originally Posted by slowdownandthink View Post
    How can anyone look at silver and say it isn't overvalued? Is there a single asset NOT driven by speculation that silver has not outperformed? Silver's in a bubble. Look at what it's down the past 7 years. How can anyone in their right mind say that isn't a bubble. And it's the foolish actions of pretty much every nation on earth and the debt they've accumulated that created the bubble and is keeping it alive. Everyone who's buying now had better pray that those nations keep on blowing into this bubble. I certainly am praying. Because the world economy WANTS TO contract and go into a credit crunch.

    And when that happens, silver will fall to what the actual supply and demand dictates. Sorry everyone, that isn't $39. It's not $29. It's not $19. It's probably around the $9 level. It will happen. There may be a period of hyperinflation prior, but eventually it will crash. And in those periods of hyperinflation, our minds aren't going to be on precious metals.

    Everyone says that if it goes really low they'll "back up the truck" and buy, buy buy. NEWS FLASH. No, you won't. Because if we quit living beyond our means (which we'll be forced to do eventually), money would dry up so fast - it would make our heads swim. We'd need every cent we have to put bread on the table. The last thing I or anyone would be doing is buying a metal we can't use that doesn't keep us fed or keep us warm.

    Any everyone here who talks about $50 or $100 silver. OK - so let's say you're right - dollar and euro melt down - not out of the realm of possibility. Do you really think that silver would stay up there for years and years for you to enjoy it? Nope - it wouldn't. Huge spikes mean huge falls.

    Every dollar you put into silver is the admission that you'll eventually lose bare minimum 60-70% of the value of that dollar. When? I don't know - but you can bet it will. Maybe that's not bad - you keep 30% of your buying power. Fiat meltdown means dollars are completely worthless. Just remember what you're giving up now to ensure that 30%. Ride the wave my friends. Heck, I'm riding it too! But remember that all waves eventually hit the reef. Be thinking about when to get off.
    Last edited by some_math_guy; 05-14-2012 at 08:57 AM.

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