Wednesday, August 31, 2011

Silver set to Soar? $50 October says so.

From Zerohedge:

Today, the physical supply of silver bullion is much less than in the 1970’s. Also there is the ‘Asian factor’ and 3 billion people with growing incomes, many of whom see silver as a store of value against currency depreciation.

Demand for silver in Asia has been increasing and in China alone silver demand is increasing from a near zero base. The demand was not present in the 1970’s.

Were silver to replicate the performance of the 1970’s it would have to rise 32 times or to $130/oz (32 X $4.05).

Interestingly, $130/oz is also silver’s real high from 1980.

Our long held belief that silver could reach the real high, inflation adjusted, of $130/oz remains. However price forecasts should always be taken with a pinch of salt and silver’s value is as financial insurance and a store of wealth that cannot be debased.

Click here...

24 comments:

  1. I truly agree with this. We are in for a fun rocket ride. Enjoy everybody.

    On another note....do the raids seem to be getting weaker and weaker as we move forward?? I would say affirmative!!!

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  2. Badass, I'm looking forward to retirement. Check out the single dude take on silver:

    http://www.singledudetravel.com/2011/08/silver-and-the-single-dude/

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  3. Of course everyone knows John Williams inflation adjusted price is well over $400/oz.

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  4. As soon as silver gets near $50 again, the Cartel will pull out all stops to smackdown the price again, but I do agree they are running out of ammo and its just a matter of time before their magazines are empty. They may win the battle, but they won't win the war.

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  5. @SGS Nice call on the SVM calls (Jan. 2012, $15 strike). I got in at $.50 per contract. Not a big position but it will pay off nicely, me thinks.

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  6. I truly wish I knew about this site and how important silver and gold are to insuring one's financial position. I feel I got in pretty late in the game, but I'm in it. I don't have many oz of silver, but will be accumulating it (as SGS says PHYZZZZ) from now on every month.

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  7. I also believe silver prices will continue to rise. I am slowly changing from a hoarder of silver bullion to a collector of silver coins. I have to pay a premium to buy the libertad, pandas, koalas, kookaburra, Britannia, and my most recent purchase of the RCM lunar dragon, but I enjoy having these coins, and as the bears have said, don't worry about the fiat price, just keep buying the fuc#*@g silver.

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  8. @Al,

    Its only the 3 or 4th inning, your fine!

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  9. @Don,

    Is that the one oz RCM lunar dragon?

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  10. LOL. These 'raids' are looking more like panty raids.

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  11. @Thorfinnr: did you see my response to you about sugar?

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  12. @Thorfinnr: disregard. It was someone else

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  13. Gents - Canadian GDP contracted in Q2 the first since Q2 2009. Canada does about $500-$600Bil trade per year with the US. If Canada is cooling off this supports all the contraction data in the US. This is good for QE3. Look at our idiot Finance Minister who believes his bitch (Canada) is the center of the universe and he blames it on Alberta wild fires.

    http://www.ctv.ca/CTVNews/TopStories/20110831/flaherty-economy-data-110831/

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  14. And just like clockwork silver gets crushed precisely at $42.00.

    This bullshit is going to end in a shooting war, mark my words.

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  15. Yeah, and that shooting will be the price of silver, shooting to the moon!

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  16. @IslandStyle: They can keep it down for a while. I'm still playing catch-up

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  17. Not going to happen. It will eventually get there, but not the way "they" have been saying it would (ie "soar" or "explode") forever. This crap just gets old and those that fail to study history are condemed to repeat it - buy at $50, sell back $40 when it "crashes" again. This is silver, not a fucking day at the country club. Put down the hopium bong and get real.

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  18. Just stopped by the coin dealer over lunch and picked up a Liberty Dollar and a few Maple Leafs and some Silver Eagles ! I hate to see the price go up ! I'm still buying..lol

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  19. @Led - I saw it last night yes, thanks will keep my eye on those trend lines. I couldn't post in work today, blogger refused to let me in.

    Still can't stop laughing at that guy Cory using the phrase "fraternity of dick riders". And who knew that was the collective noun?

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  20. How 'bout buy at $40, sell at $50, buy at $40 again...hmmm...now you're giving me ideas. LOL Actually, I'm going long on my phyzzz...

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  21. So, what happens when silver hits that psychological barrier of $130/ounce? Does the market mark that as insignificant and the price action continues upwards, or do we see the short term (~1 year) top? I wouldn't be surprised. All-time highs often represent a huge resistance. Especially in this market, I believe that the psychological resistance will play a big part in the price action of silver when it gets in the $115-$135 range.

    Let me know what you guys think, if you have an educated opinions. SGS, I'd like a reply from you!

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  22. $130 is not physychological at all. That is an arbitrary # pulled out of someones data they correltated. Decades, 1/4 centuries, 1/2 and full centries are levels. Etc. 10,20....25, 50, 75, and 100, 200, 300.

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  23. I've never seen something more blatantly obvious that the SVM trading today wow. The short are trying their best today.

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  24. 6.38 Million shares, lol. I've owned it since $4.

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