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Thread: Paper Silver is having a Fire Sale

  1. #1

    Default Paper Silver is having a Fire Sale

    As of lately the paper price is coming down. If you put your money in paper silver on the wrong side of a trade you will get a margin call or your mutual funds value (or etf's) will decrease as we all know.Owning physical silver and watching the paper price go down should not bother you ,it should make you happy if it goes down if you have powder saved to double down but most don't and have shot their load. Having had physical at $5 and silver going to $50 should had set you up for life but most hung on for the ride not selling any at the top and not buying paper shorting products either at the top .We are the ones feeling the pinch now.Now we need to make it back but how.We are out of powder for the most part.Now we have to figuire away back while losing everyday as the price drops further.We can only hope it will stop inflicking pain.My advice is get some more cash somehow and hope after this further drop it will rise again and inflation will take over again in Dec. 2012 as most here believe.Its quite a lesson and quite a ride. You have to have patience or a hole in your head if you like physical with the big banks trying to steal your stash all the time. They do it to stock holders also and eat everyones 401's. Its a cruel world when the banks make the elevator go up and make the elevator go down but thats what they do and get used to it. its not going to change.Big banks are tipped off from the federal reserve and they are the ones responsible for econmic woes.My advice is keep on stacking as it will turn around and head the other way in December 2012.It is just a fake out to steal your stash and to keep themselves in profits.Patience is a virtue.
    Last edited by silverfish; 05-15-2012 at 03:00 AM.

  2. #2

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    When interest raise rise in a few years, I plan to buy gold and silver way lower then we are today

    GL

  3. #3

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    So do I, but thats a long time away and many things will happen in between.Its a good plan but a future one.

  4. #4

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    My Quarter ton does not because it is all works of art made by old silversmiths and holds it day to day value.Mostly 2 times and up (Tiffany etc.)and some things 10 times. I do buy scrap and bullion when I can make a profit but are sold to buy works of art right away.I have been around since before the 1979 period and active in silver and gold and know how to play the game.When and if I need some money I am not forced to take a loss on bullion or scrap as I have none.Just like numismatics will hold their value being rare.

  5. #5

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    Quote Originally Posted by tdda32 View Post
    When interest raise rise in a few years, I plan to buy gold and silver way lower then we are today

    GL
    Interest rates will only rise because the FED has lost control over the bond market. That can only happen because of inflation is out of control. This would drive the price of silver higher like in the late 70's and 80's when interest rates climbed so did PM. If you are waiting for higher interest rates then you will be buying at much higher PM prices.

  6. #6

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    Quote Originally Posted by dcj98gst View Post
    Interest rates will only rise because the FED has lost control over the bond market. That can only happen because of inflation is out of control. This would drive the price of silver higher like in the late 70's and 80's when interest rates climbed so did PM. If you are waiting for higher interest rates then you will be buying at much higher PM prices.
    High interest rates are used to get inflation out of the system, this in theory should cause people to shy away from PMs not buy more of it, therefore high interest rates would not make PM rise...just my take on it all...

  7. #7

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    Quote Originally Posted by Spartikis View Post
    High interest rates are used to get inflation out of the system, this in theory should cause people to shy away from PMs not buy more of it, therefore high interest rates would not make PM rise...just my take on it all...
    No you have it backwards. Higher interest rates in a "free market" would represent an absence of capital, its scarce and therefore requires a premium. It represents leverage. It can also represent risk of debt default. Both are bullish on PM. This is the market forces natural tendency but we don't have this "right now" although we will be moving towards this because the FED is loosing control. Below is what we have.

    In a manipulated market the gov can set any interest rate they have the "ability" to set. Key word is ability. Right now they can manufacture the interest rates low because of our reserve currency status. Trust me they are not going to raise rates (Not with this much debt) unless we see inflation "first" or the world abandons our debt buying.

    Basically we will see higher interest rates in one of two ways:

    The world has abandoned the $ causing a mad rush of bond sales, and the FED is forced to support our debt by raising interest rates. Very bullish on PM.

    Or

    Inflation is out of control due to liquidity (money velocity), therefore forcing the FED to raise rates, also very bullish for PM.

    The FED will not just wake up some day and say "well gee I think rates should rise today, in the absence of the above scenarios"

  8. #8

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    Quote Originally Posted by dcj98gst View Post
    No you have it backwards. Higher interest rates in a "free market" would represent an absence of capital, its scarce and therefore requires a premium. It represents leverage. It can also represent risk of debt default. Both are bullish on PM. This is the market forces natural tendency but we don't have this "right now" although we will be moving towards this because the FED is loosing control. Below is what we have.

    In a manipulated market the gov can set any interest rate they have the "ability" to set. Key word is ability. Right now they can manufacture the interest rates low because of our reserve currency status. Trust me they are not going to raise rates (Not with this much debt) unless we see inflation "first" or the world abandons our debt buying.

    Basically we will see higher interest rates in one of two ways:

    The world has abandoned the $ causing a mad rush of bond sales, and the FED is forced to support our debt by raising interest rates. Very bullish on PM.

    Or

    Inflation is out of control due to liquidity (money velocity), therefore forcing the FED to raise rates, also very bullish for PM.

    The FED will not just wake up some day and say "well gee I think rates should rise today, in the absence of the above scenarios"
    Agree with this for the most part... I think the key in these situations though is negative real interest rates. Meaning that inflation will be running higher than the interest rates. In any of these scenarios, I believe this would be likely, and that would be bullish for PM's.

    In the 80's the Fed raised the interest rates above 20% to counter inflation... this time around, if inflation gets out of control, they won't even be able to hit half of that mark without causing a default on our debt as it would become unservicable.

  9. #9

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    Quote Originally Posted by Spartikis View Post
    High interest rates are used to get inflation out of the system, this in theory should cause people to shy away from PMs not buy more of it, therefore high interest rates would not make PM rise...just my take on it all...
    I think high interest to control inflation will only happen after a collapse and major overhaul of the financial and government. Austerity is not the answer when you have a government with a spending problem.

    Austerity is like parents living on soup and bread while they keep getting their child a new credit card, because the other ones have all hit their limits.

  10. #10

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    how i feel about paper silver
    "BURN BABY BURN"

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