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Termyn8or -> RE: Silver, gold? copper? where ~``` (3/25/2008 9:05:17 AM)
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Hunky I got one word for you - silver.
I read a very interesting article on silver not too long ago by someone who sounds like they know what they are talking about. I can get the author's name if you press me for it, but suffice it to say that it is something that I read that seems to make sense, for now.
What the guy is saying is that silver is even better than gold because alot more gold is mined than is needed by industry. The reserves are, if not shrinking, they are certainly not growing. If even they are growing they are not growing enough. Silver has more uses in industry than gold, but gold is hoarded and planted in national reserves, and used in jewelry. Of course silver is used in jewelry as well, but that doesn't change much.
What he says is that they using more of it than they are mining. Don't look for a windfall overnight. But the fact of the matter is they are not going to actively seek more sources until the price goes up, well at least not really actively. Once the price goes up there may be another war. HAHA, the silver wars of 2015.
In fact if that were to happen, you might expect the bottom to drop out then, but look what happened to oil. At a hundred bucks a barrell we gained nothing. If they do find silver without a war the normal market forces should take shape concerning the trading value.
What happened to oil was a fluke. If people weren't sucking the system dry oil would be ten bucks a barrell, WE ARE STEALING IT, it should be free, in fact it is free, to those who control it. They just choose to sell it at a very high price because they literally have us over a barrel.
I bought a couple pounds of silver, we'll see what happens. But I realize that it will be years before any real profit is realized, and that can only happen if the value runs ahead of inflation. With gold you can pretty much break even, but there is plenty of it around.
Let's put it this way, if you bought enough gold back say fifty years ago, to buy a new car, you could sell that gold today for enough to buy a new car. What did you really gain ?
Gold is fine as an inflation hedge, but if you really want to make money you have to get ahead of the curve so to speak. Silver is poised to do just that in the next decade I believe. And you are unlikely to lose in any event, like gold. But with silver you have the actual possibility of real gain.
And I said possibility, speculation is a gamble no matter how you look at it. Before you bet the farm on it do some research. Get back to me and I'll find that guy's name, but right now it is time to go to work.
T
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