Page 2 of 6 FirstFirst 123456 LastLast
Results 11 to 20 of 54

Thread: When does silver start hedging against inflation?

  1. #11

    Default

    Quote Originally Posted by ynot2k View Post
    Good one!

    Unfortunately on some level (perhaps a bit higher up the household expense chain) there is probably some truth in it.
    Yessir ^^^

    Noticing my local pawn shops are much busier $$$ these days.
    Frugal shoppers at the grocery stores.
    1835 Andrew Jackson had US debt at ZERO $0
    175 YEARS later .......
    2008 Owebama started at $10 TRILLION, left 2016 at $20 TRILLION
    So from 2008 - 2021 (13 years) added $20 TRILLION

    https://youtu.be/1kuTG19Cu_Q

  2. #12

    Default

    Fairly standard for asset prices to fall when we are in a tightening cycle, correct? Now Is the time to start buying again. Selling time was at $26 or so.
    Keep buying. When the FED is forced to reverse course it will go up again. Probably within the first or second quarter of next year.

    Most think a recession is inevitable by that time, if we are not currently in one.

    Why didn't silver go much higher? I think it was the Cryptos. Many who were buying gold and silver a decade ago are into crypto now. Had it not been for that we may have seen Silver at $50 or higher. I also thought that with Covid lockdowns and money printing we would see a RunUp of historical proportions. Has to be the Cryptos.
    That's my speculation. I made good money on gold and silver post 2008 when the FED began QE. Everywhere you looked, or listened folks were peddling gold and silver and wanted to buy yours for a fraction of what it's worth. People now view crypto as a viable alternative to gold and silver.
    The initial fears and assumptions in the 08 aftermath fueled a lot of the gold and Silver RunUp. Those same fears do not exist anymore, at least not like they did at that time.
    Same story of fear happened when Nixon took us off of the Gold standard and inflation went out of control. It seems that Silver and Gold keeping up with inflation has a lot to do with the uncertainty of a given economic event. Not inflation alone. The FED has sent the message over the last decade that bailouts are the new norm. Our government has done the same with stimulus programs.

    My opinion is that now is the time to start stocking up again.

  3. #13

    Default

    "Fairly standard for asset prices to fall when we are in a tightening cycle, correct?"

    ^^^^ Good point. Seems that silver and gold started edging lower as the Fed started raising interest rates. It is a good time to buy IMO.

  4. #14

    Default

    Silver is simply way to volatile to be a reliable inflation hedge. Only way to use it as such a hedge, is to buy during the lows. The question is: are you keen enough to figure when we are at the lows?

    I would say with silver to gold ratio at 95:1 and silver under $18/oz at this day and edge, we are definitely in the lower range, so buying at this level (and lower) can act as a "hedge". However anyone who tries to chase and speculate during silver value explosions are not using it as a hedge.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  5. #15

    Default

    It seems that volatility in silver increases when the price goes up. There were some wild roller coaster rides back in the day when the spot price was at $30 +. Is it just me or did anyone else see that?

  6. #16

    Default

    I don't know, my 90% silver that I've owned since it was pocket change in the '60's seems to have done quite well at maintaining it's value. Yes, at times it is worth less than average, but at other times it is well above inflation. I can still, more or less, trade a couple of 90% quarters for a couple of gallons of gas or purchase about the same amount of food with the fiat I receive from selling a couple of them. No, it hasn't gone to the moon. I never expected that it would. Right now I see silver as being at the bottom of a cycle and am loading up as often as I can, but I'm not buying ASE's (I'm selling them) or grabbing bags of 90% (sold that stuff too) since too many are overpaying for these items. Generic silver is where it is at today, IMHO. Forget about instant gratification and look long term. OBTW, long term doesn't mean 6 months or a year!
    Do your own due diligence

    I stand united with my friends & family in Canada who seek freedom.

  7. #17

    Default

    I'm seeing more 2013 than 1980, is all I am saying.
    "Compulsory altruism is none too altruistic." - me

    "All of us necessarily hold many casual opinions that are ludicrously wrong simply because life is far too short for us to think through even a small fraction of the topics that we come across." -- Julian Simon

  8. #18

    Default

    Given all the inflation that has happened recently and over the years, I say it's more like 2015 than 2013. Today's $18 silver is like $15 silver of 2015. Someone can run the calculation with official inflation rates, what is $15 from 2015 worth in today's dollars?
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  9. #19

    Default

    Quote Originally Posted by motocat View Post
    Given all the inflation that has happened recently and over the years, I say it's more like 2015 than 2013. Today's $18 silver is like $15 silver of 2015. Someone can run the calculation with official inflation rates, what is $15 from 2015 worth in today's dollars?
    Pretty good observation.


    $15 in 2015 is worth $18.75 today

    https://www.in2013dollars.com/us/inf...2015?amount=15

  10. #20
    Join Date
    May 2013
    Posts
    1,490

    Default

    And what's $50 in 2011 dollars worth today?

    Ag guy
    live for today, admit your faults, do the right thing (even if you don't want to) & trust God!
    This life is the training of the soul for the life to come. (accept that we live in a fallen world)
    Whether you know it or not, you are a spiritual eternal being! Ag guy

Page 2 of 6 FirstFirst 123456 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •