Silver & Gold

You guys watching what is transpiring right before your eyes.........IRT the spot price of gold and silver?
(U.S. Dollar).

I was going to say something...but I was the one who posted this topic last time.
CNN said Tuesday that the US has a around 45 days to pay back 2 trillion of the national debt or will will go into default.
Just think what precious metals will do then...or how about food/ gas prices.
This country is headed for a "hard-reset"

Yup I'm watching Tom and hoping it does not take a correction (especially silver) before midweek!

Tom Z

I have been watching those prices Tom.-----I'll say it again "wish I wouldn't have sold that gold & silver last summer"! groan-----I got some left, I'll just call it "dollar cost averaging" (on the up side)! grin-----------Del

It may come a time when gold and silver might just be the only tender accepted in the country.
Is it true that our US money is based on the economy and not the gold that we use to have (Ft. Knox)?

The US went off the gold standard back in 1913 over the Christmas holidays thanks to some sneaky bankers and greedy politicians.
The fiat or paper currency is backed by the Federal Reserve (a bank).
Historically ALL fiat based economys have all failed.



Edited 1 time(s). Last edit at 04/22/2011 04:37PM by Aaron.

President Richard Nixon ended the direct convertibility of the dollar to gold in 1971.

I thought it happened in 1933 (???)

[en.wikipedia.org]

The forced contraction of the money supply caused by people removing funds from the banking system during the bank panics resulted in deflation; and even as nominal interest rates dropped, inflation-adjusted real interest rates remained high, rewarding those that held onto money instead of spending it, causing a further slowdown in the economy.[9] Recovery in the United States was slower than in Britain, in part due to Congressional reluctance to abandon the gold standard and float the U.S. currency as Britain had done. It was not until 1933 when the United States finally decided to abandon the gold standard that the economy began to improve.

It's in vogue these days to bash the abandonment of the gold standard, but most credible economists of the last 50 years acknowledge that this was the correct move.

My mistake, the Fed Reserve est. in 1913 (a totally separate incorporation from the government), gold standard ended in 33'.
Those economists are probably the bankers talking.

They hate gold because they can't print it.



Edited 2 time(s). Last edit at 04/22/2011 05:13PM by Aaron.

yes, i am watching! worrying!!!! i have heard the last part of the "gold boom" will be indicated by a period of up and down spikes followed by a sharp increase to about $5000.00 around 2012. however this was before these latest bad reports on the economy and world issues. i still have my gold!!!

Tom,

What's your take on this? Unlike the Hunt Bros. in the '80s, this is a global demand due to the over printing of the dollar. Should some form of adjustment on our end...ending the front wars....fixing the entitlement programs...repealing Obamacare....any one of these should calm things down?

Just remember, you cannot eat it. It will not keep you warm.

Convert your protfolio into tangibles while you can afford to. Going to be a rough ride for a few years.

So am I the only guy thinking this is a "blow off top" (stock trading term) and the time to sell all my silver is drawing very close?

Do you know that Fort Knox has never been "physically" audited for its gold stores by anyone outside of the government. Even though many requests to do so have been denied over the years. The bad news............the gold is long gone. Mark my words.........one day soon....its going to be found out.

It sure makes you wonder, I still have a little over 15 lbs. of silver money that I have dug in the last 36 years just waiting to call it TIME TO SELL. I did cash $131 dollars of silver coins dug out of the salt water here in Annapolis 3 weeks ago. Silver was $35 and I got $ 2518 for that nasty ate up stuff, some dimes were as thin as a razor blade and quarters were as thin as dimes...The rest of the coins are all from the ground.

Just curious LiL John where did you cash it in at? Did you us an on line company?

It is my speculation that gold and silver will NEVER return to original levels of $360 for gold and $5.00 for silver. It may 'correct'.......but that would be $900 & $18.
The difference here is........in Dec 1979 and Jan 1980........the Hunt brothers drove up the prices instantly........over the course of a small-handful-of-weeks frenzy. This time...........it's not 'weeks'. In fact..........it's not 'months'. It's years. The demand for silver and gold is completely different....as compared to 30 years ago. I truly doubt that gold will ever go below $900 ever again............and silver will never go below $18 again. If the true fiat value of the dollar is ever 'mass' discovered..............and the dollar collapses; it would then become very difficult to gauge/valuate precious metals in a fashion that we could 'understand'.

Hi Dew I would have used ARA in Texas but I have made friends with a guy that owns a coin store here. I took the 20 lbs or so of silver coins to his shop and asked what he could do..I told him that ARA would do 90 % of spot and he said OK, so that saved me shipping and insurance. I asked him should I dump it all and he said he wouldn't but would just dump the nasty salt water silver..So I did and silver was at $35 that day...So like I said I still have over 15 lbs to go. I may just hedge if it hits $50 and sell only half and hold on the other half. Just in case it just keeps going..I'm not or never have been a gambler but you just never know when is the time. LiL John

The price of gold and silver is no where near a top. It has a few years to go. We are only in the 2nd of 3 upward phases. The final blow off phase occurs when the general public piles in, and the price goes straight up. When you see a line of buyers waiting to get in to the coin store to buy silver, the top is nigh at hand. My guess is silver tops out at $200-300 an oz.

"I truly doubt that gold will ever go below $900 ever again............and silver will never go below $18 again. If the true fiat value of the dollar is ever 'mass' discovered..............and the dollar collapses; it would then become very difficult to gauge/valuate precious metals in a fashion that we could 'understand'.

"The price of gold and silver is no where near a top. It has a few years to go. We are only in the 2nd of 3 upward phases. The final blow off phase occurs when the general public piles in, and the price goes straight up. When you see a line of buyers waiting to get in to the coin store to buy silver, the top is nigh at hand. My guess is silver tops out at $200-300 an oz"

I totally agree.

I also concur that silver has a way to go in this current climate. It's my understanding that the traditional silver to gold ratio is something like 16:1 and we are somewhere near a 36:1. Doesn't that put silver somewhere over the $100.00 mark at the current gold price? Seems to me there's a lot of movement left for silver to catch up with gold? And since there seems no end to our printing of the dollar in sight, gold is going to keep climbing as a hedge for hyper-inflation (not that it isn't already occurring....gas...food..etc.)?

Well lets hope China whose buying most of the gold and sticking us with forged coins dont do the same the Hunts did. This will have a real affect on coin collectors as well. As the numbers of cull coins are melted and taken out of circulation the prices of those collectable ones will increase. Of course those investors who REQUIRE grading will only increase their standard to keep most people from getting there kind of price. I havent looked to see what affect the melt value is having on collector values.... has anyone? Ive been talking to family and people i know ..... many have cashed in pieces they had just laying around. Id hope the coin store/collectors dont see dollar signs over the long term value of some of the less collectable coins. What a loose that would be.

Dew

In general I agree with everything being said about how the silver market has a lot higher to go and the run has a lot more time left to it. On the flip side, however, every time I think I have a market figured out the rules change and I get stuck holding the bag. This time there are no Hunt brothers trying to corner the market but now we have ETF's(exchange traded funds) like SLV where a guy can buy and flip the equivalent to 1000 oz of silver in a minutes time without ever leaving his house. At last filing this ETF held close to 340 million oz of silver. That's more than the Hunts held. So while maybe the mom and pops lining up at the local coin store might still be the cue that the market is topping its also possible that just like we witnessed with the collapse of Bear Stearns and Lehman Bros in an instant, electronic trading of these derivatives like SLV will mark the swift reverse when nobody's prepared for it.

Well said.

And...........although............I like the 15:1 or 16:1 ratio,,,,,,,,,,,,, I believe the demands for the two metals are quite different from yesteryear. I can only speculate what 'todays' ratio should be. Both metals are utilized in industrial fashion MUCH more than yesteryear.........but not in the same ratios.


Also: You cannot eat your silver coin...or eat your gold coin; but you better be ready to...........unless you are a farmer of whom can bring 'commodity' to market for barter. Otherwise; hold on to those precious metal coins........as they are ideal for exchange (and have been for 1000's of validated years). Most folks do not have 50 pounds of eggs, 50 pounds of wheat, 50 pounds of flour and 50 pounds of hog ..... to carry to market.... for barter. A coin is a MUCH easier medium of exchange .... and with extreme portability.

guys forget about gold and silver, when the sun flares knock out the power grid, I hope you guys know how to work with your hands, gold and silver will mean nothing , gas either, we are heading for a Mad Max senerio

right!..paranoia strikes deep!..into your life it will creep
starts when you are always afraid!..step outta line,the man come,and take you away!
our elected "officials" starting to 'frighten" a lot of people!.."'chance favors the prepared mind!"
scary s**t goin' down!..just sayin!

(h.h.!)
j.t.

In 1964, 3 silver dimes could buy you a gallon of gas. Today 2011 at the current rate of silver the same 3 silver dimes will buy you about 2 1/2 gallons of gas. So guess what will probably go up in price to KEEP UP with the current disastrous trend? It's a sad paradox in time we all live in now....I know I'm a showing a little more skepticism about the future than I normally would now..I just try to keep my head up and I also don't watch the depressing news channels anymore....I also try to get out detecting everyday to try and keep my mind clear of any depressing thoughts....JJ

Gold is up almost $13. and silver will probably hit $50 today, and the market hasnt even opened yet!

Psalms 146:3

paranoia strikes deep!, Jmaryt, I'm a boyscout, I'm just prepared, I hope it never comes, and they have been saying it since I was a kid, so I learned skills, and didn't waist my time collecting money, that they cam take away, a stupid statement, I do collect money, but I dig it out of the ground, having fun doing it, not stressing , working for it

I grew up poor on a small country farm back in the day. Joined the military and saw the world... but never got rich at it. Less is easier to live with than you think and you are a lot happier. We have forgotten how to live simply. Its not me but my kids i worry about. A son with a teaching degree... and no job and a daughter who cant find a job that pays more that $15 an hour. The baby boomer are retireing.... taking care of their kids and parents and not paying but drawing on social security and medicare. Id suggest you save where you can and not rely on others to keep track of your money. You cant eat silver or gold... but its a fact of life people like this coins and always will.

Dew