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Old 11-08-2011, 02:16 AM
getiton getiton is offline
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Default 10 Reasons Why Gold Is The Gut Reaction And Why Silver Is The Smart Decision

I think this is a nice article. Would like to share it with you. You probably know these reasons already. Any critique would be appreciated.


http://www.thepeoplesvoice.org/TPV3/...-gut-reaction-
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  #2  
Old 11-08-2011, 06:13 AM
anzu anzu is offline
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The author claims to have invested heavily in silver in 2005 which has been shown to be a very good move. It doesn't guarantee the same magnitude of upside if you invest today. I will note however, that ominous financial events continue to loom large and are pushing people to safe haven investments.

The author cites the lack of counter party risk with physical PM as a benefit over securities that may fail to pay their specified dividend. That finesses the anti-gold complaint that there is no income stream from holding precious metals, it is purely a battle against inflation. More importantly, it is ignoring the greater risk of theft that holding PMs incurs.

For his enumerated advantages:
1) Industrial silver demand is price inelastic, but if you are forecasting an economic collapse (as per much of his article,) you should not expect industrial demand to be sustained.

2) The logic is spurious - you can get gold in smaller, more affordable quantities, though it may be more comforting to hold an ounce of silver than a gram wafer of gold. Without someone running experiments to see how people's psychology influences their purchase of gold vs silver at various price points and factoring in momentum, I would not trust this kind of argument.

3) Haven't checked this one

4) Rarity affects supply, not necessarily demand

5) Find my previous posts on ratios to see why I disregard them as a predictor

6) I am baffled why the conspiracy theorists are convinced that all of the big market players are onside with a plan to suppress silver prices. Any large hedge fund could squeeze the shorts if they thought there was a fortune to be made doing so. Trading desks have multiple types of risk reports examined by various levels of management daily. Unless the part of the bank that benefits from silver suppression is paying off the commodity desk (and that kind of deal has been known to happen,) to absorb the losses, it is hard to imagine a trader would chronically go short in a manner that loses money.

7, 8, 10) Not particularly sound reasoning in my mind.

9) I don't believe there are any central banks currently holding silver, but it was only recently that the last stockpile was sold off.

Note: I am still long on silver; I just hate PM-bugs that fling random theories and hope something will stick.
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Old 14-08-2011, 07:10 PM
jloydjay jloydjay is offline
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Thanks for the article and the insights to you guys. I am new to investing in silver, so just wondering is 925 silver worth buying? I always see advertisements like 'this has 1oz WORTH of 999 silver in this proof coin' or something like that. Thanks
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Old 14-08-2011, 09:01 PM
SierraOne SierraOne is offline
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Originally Posted by jloydjay View Post
Thanks for the article and the insights to you guys. I am new to investing in silver, so just wondering is 925 silver worth buying? I always see advertisements like 'this has 1oz WORTH of 999 silver in this proof coin' or something like that. Thanks
Hi jloydjay

I am new to the silver market also. From what I see in my short period here, unless the 925 silver item has numismatic value (Proof coin, old coin, limited edition, etc) to it, it wont be sold as quickly as the 99.9 silver items. Those 99.9 silver items are sold like hotcakes especially when the price of silver is going up. Then when the price of silver goes down, so does the selling. You should check out the current and past offers in the classifieds section.

Any veterans in the PMs market please share us your thoughts on this.
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Old 14-08-2011, 09:19 PM
leroyel leroyel is offline
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Quote:
Originally Posted by SierraOne View Post
Hi jloydjay

I am new to the silver market also. From what I see in my short period here, unless the 925 silver item has numismatic value (Proof coin, old coin, limited edition, etc) to it, it wont be sold as quickly as the 99.9 silver items. Those 99.9 silver items are sold like hotcakes especially when the price of silver is going up. Then when the price of silver goes down, so does the selling. You should check out the current and past offers in the classifieds section.

Any veterans in the PMs market please share us your thoughts on this.
Actually it is the same as gold. Investment grade Gold and silver of 999.9 will give u a good selling price as buyer can buy and then sell it without any delay. Gold jewelry and 925 silver items are consider scrap and is usually send for re smelting and they will factor in all these costing such as smelting cost, risk of the price going down due to the delay for smelting etc. Because of all these factors you cannot expect them to give you a good price.
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Old 14-08-2011, 10:43 PM
mettle mettle is offline
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Quote:
Originally Posted by anzu View Post

6) I am baffled why the conspiracy theorists are convinced that all of the big market players are onside with a plan to suppress silver prices. Any large hedge fund could squeeze the shorts if they thought there was a fortune to be made doing so. Trading desks have multiple types of risk reports examined by various levels of management daily. Unless the part of the bank that benefits from silver suppression is paying off the commodity desk (and that kind of deal has been known to happen,) to absorb the losses, it is hard to imagine a trader would chronically go short in a manner that loses money.
6) My understanding is that silver prices are suppressed by major players when they sell paper silver products that increase the supply of silver traded beyond the real physical quantities available. The daily volume of silver traded in this way per day is ridiculous compared to actual amounts of physical silver mined per year. I would think given prices move in waves, there is certainly profit from naked short sell and at the same time use it to attack the price. As the author has written about giving strength to the dollar, the day the dollar collapse is the day the paper silver bubble burst.
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  #7  
Old 14-08-2011, 11:29 PM
jloydjay jloydjay is offline
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Thanks SierraOne and Leroyel!

I frequently come across ebay listings which sell proof silver (mostly 925), but they make it sound like it's as valuable e.g. it has 1oz worth of 999 silver out of this proof coin. Well I guess 999 silver is still the best in terms of investment then. Thanks again!
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  #8  
Old 15-08-2011, 01:30 AM
Seng_84 Seng_84 is offline
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Agree that 99.9 is still the best form..wonder if anyone have junk silver in sg?
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  #9  
Old 15-08-2011, 02:19 AM
getiton getiton is offline
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Quote:
Originally Posted by jloydjay View Post
Thanks SierraOne and Leroyel!

I frequently come across ebay listings which sell proof silver (mostly 925), but they make it sound like it's as valuable e.g. it has 1oz worth of 999 silver out of this proof coin. Well I guess 999 silver is still the best in terms of investment then. Thanks again!
u should probably ask this in a separate thread, keep things neat and simple... i noticed u asked alot of similar qns all over various threads...is it because newbie cannot start new thread?

anyway my take is...silver is silver. 30% or 50% silver, i will buy and keep; it can be used for small change when i need antibiotics in WWIII.
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Old 15-08-2011, 06:52 AM
leroyel leroyel is offline
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Quote:
Originally Posted by getiton View Post
u should probably ask this in a separate thread, keep things neat and simple... i noticed u asked alot of similar qns all over various threads...is it because newbie cannot start new thread?

anyway my take is...silver is silver. 30% or 50% silver, i will buy and keep; it can be used for small change when i need antibiotics in WWIII.
Although silver is silver. Unless u have the capability to refine it and extract out the silver content or proof that it contain that amount of silver, the price of it would significantly dropped because no one will go and assay it during the WWIII . People still buy silver coins and bars because they are easily tradeable as the purity content is stated to prevent confusion. Will u accept a thing that a person claim that contain 20% silver in a time of need or u rather be sure with another person who offer u a nice and shiny canadian silver maple leaf coin
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