"The Wealthiest people in the world today are those who bought silver, not gold."

Don't get me wrong, I like 'em both. Palladium, too, not to mention Rare Earth metals. And this is not intended as advice to buy, hold, or sell any investment, etc etc. Just my four (adjusted for inflation) cents.

FORT LEE, N.J. (Commodity Online): The National Inflation Association says silver is the best investment proposition and the wealthiest people in the world today are those who bought silver, not gold.

Here is a statement on the need for silver investment from the National Inflation Association:

"We are less than three weeks away from entering the next decade. The most important thing you need to know entering 2010 is that silver is the single best investment for the next decade. In our opinion, investing into silver is the only sure way to tremendously increase your purchasing power over the next ten years.

Throughout world history, only ten times more silver has been mined than gold. If you go back about 1,000 years ago between the years 1000 and 1250, gold was worth ten times more than silver worldwide. From year 1250 to 1792, the gold to silver ratio slowly increased from 10 to 15 and the Coinage Act of 1792 officially defined a gold to silver ratio of 15. The ratio remained at 15 until forty-two years later when the ratio was increased in 1834 to 16, where it remained until silver was demonetized in 1873.

The gold to silver ratio remained between 10 and 16 for 873 years! It is only over the past 100 years that the gold to silver ratio has averaged 50. History will look back at the artificially high gold to silver ratio of the past century as an anomaly, caused by the dollar bubble and the world being deceived into believing that fiat currencies are real money, when in fact they're all an illusion. Next decade, the fiat currency experiment will end badly in a currency crisis. The wealthiest people will be those who bought silver today...

More at source
www.commodityonline.com...

reply to post by silent thunder


I've read that argument as well before about silver/gold.

But I do not think this is correct thinking. The reason is because just like we are finding out about NG and Crude that ultimately the market decides where the commodity should be priced and not a ratio of sorts. Even though historical information points to the relationship it can end at any time and something else can happen.

Something along the lines of "Past results do not necessarily determine future outcomes"

reply to post by GreenBicMan



I like reading your stuff even though I often disagree with your analyses. Fess up, you are a commodities bear/derivatives lover deep at heart, arentcha?

Wanna take a few zillion synthetic CDOs off my hands?

reply to post by silent thunder


How much for an ounce of Rhodium?
Don't leave out the beautiful 1 ounce Platinum American Eagle coin.

Maybe if I knew what those were and had a full time job.

But referring to the first part, I just call them like I see them. Even though I guess you could say Im always bullish, thats just more opportunistic than anything. If there is something that sets up for a bear position (the thread i made on gold) then I will post that as well.

FORT LEE, N.J. (Commodity Online): The National Inflation Association says silver is the best investment proposition and the wealthiest people in the world today are those who bought silver, not gold.

Just an FYI.

The National Inflation Association was founded by a YouTube character named George4Title , and his partner Jonathan Lebed.

Jonathan Lebed: Stock Manipulator, S.E.C. Nemesis -- and 15

Full Text

Related

When I began receiving emails for the National Inflation Association containing Gold/Silver Jr mining stock recommendations...I hit the "Report Spam" function in my Gmail account. A few of the recs were what I believe to be viable companies , I even own a couple of them , but that's not the point. Even good stocks can be pumped-dumped and re-pumped for short-term gains.

I'm not accusing , but as someone who lost his share of $ to penny stock scams in his formative years...I'm just saying.

*

Both Gold and Silver are burdened by large illegally concentrated short positions , but Silver has a few issues related to it's broad industrial applications that Gold doesn't have to contend with.

Will we ever see that Comex Silver squeeze ? Hope so , I like 'em both.

Wonder how silver got to be so low against gold being that there is less of it. And if people get scared and we have bank runs, won't silver go up more than gold because it is more affordable?

Not to be off-topic, but I'd like to find a forum to join that cover all aspects of investing and you guy seem to be more informed than me. I googled it and got ones like italkcash.com, marketforum.com, etc. I'd like a suggestion for a forum that isn't overseen by some big bank or such influence. I really would like to start a trading myself and getting up to speed on stuff through an excellent investment forum.

Thanks in advance.

[edit on 13-12-2009 by thepixelpusher]

I agree 100%

Silver is undervalued or Gold is SEVERELY overvalued. The price ratio makes silver very attractive right now along with Silver being used in production.

This is from an article in 2005:

silverstockreport.com...

In the last 60 years, the trend has been to consume, in industry & electronics, nearly all the silver ever mined since the beginning of time. Investors are beginning to become aware of the silver shortage, and thus, in 2002, Hecla mining (silver) was the top performing stock on the NYSE. In 2003, silver stocks, on average, were up 314%. Today, silver bullion itself is up from $4.15/oz. in the spring of 2003 to about $7.30/oz. Silver prices peaked recently at $8.40/oz. in April 2004, and the trend is still up. Silver may reach about $15-25/oz. in the next year. I believe silver prices will exceed historic norms of about $2000/oz., due to the shortage.

Interesting. 2003 it was $4.15 and oz.

www.silverbearcafe.com...

In 1900 there were 12 billion ounces of silver in the world. By 1990, the internationally respected commodities research firm CPM Group say that figure had been reduced to around 2.2 billion ounces of silver. Today, that figure has fallen to less than 1 billion ounces in above ground refined silver. It is estimated that more than 90% of all the silver that has ever been mined has been consumed by the global photography, technology, medical, defense and electronics industries.

On current supply/demand trends, the amount of above ground refined silver is projected to shrink to even lower levels in the coming years. Industrial demand has been outstripping mining supply for most of the last 20 years, driving above ground supply to historically low levels. Few in the investment world are aware of this important fact.

Silver production has been flat in recent years while demand has been increasing. This hasn't resulted in significantly higher prices yet because the world has been able to fill the gap from inventories and official government stockpiles.

However, today the U.S. government's stockpile is all but gone, and sales from other official sources, such as China, Russia and India, are declining, too. The decline in refined silver stocks, from around 2.2 billion ounces in 1990 to around 300 million ounces today means that silver stocks are near an all time low.

So to summarize, Almost ALL of the silver ever mined has been used up and demand is increasing while supply which was already far below the demand is flat. In 110 years we have USED 11 Billion ounces of silver and there is only 1 Billion mined ounces left.

I get the idea. That is why I am banking on Silver over Gold.

infolurker, I love your signature. Any suggestions about good investment forums I can join?

reply to post by thepixelpusher


trade2win is usually pretty good

better rec. would be to study for about 10,000 hours of market tape via charting with all different time scales and to get a book by a guy named Bulkowski : Encyclopedia of Chart Patterns

again, would be smart not to trade for real until you put that many hours into it, otherwise there is a better chance than not you will burn

GL

EDIT:

Also like I said, it doesnt matter if there is less of it, it matters what the market determines it worth. Btw, add about another 5000 hours of studying historical market psychology to that list.

[edit on 13-12-2009 by GreenBicMan]

The wealthiest person in the world (or second wealthiest, depending on what month it is -- talking about Warren Buffett, of course) bought EQUITIES AND BONDS!!!

Stocks, bonds, general knowledge of how a company is run and finance is how you make money.

Buying silver/gold/misc commodities is how you preserve wealth, at best.

If you want to be truly wealthy, forget about commodities. That stuff is for people who are too lazy to learn how to properly invest. Don't be one of those people -- you live in a capitalist society; start acting like it.

I guess silver is the forgotten little brother right now, but will excede expectations later. FYI, be careful of where you buy, look at the shipping prices especially if your buying online. ALot of these companies you hear advertising on radio dont tell you that the shipping costs can sometimes exceed 20 dollars! If your looking to buy small quantities at a time then check your local coin store out.

reply to post by thepixelpusher


Not really, I don't invest in anything other than my 401k match level, buying hard Silver from the local Numismatic exchange and buying Land, Food, guns, and bullets... LOL. Bullets are a great investment. Almost 6-7 times return on investment from 1999 prices. Food is Always a good investment as long as you eat it. Those 50 cent 6 oz cans of Tuna 2 years ago are now 5 oz and 80 cents.
The cost of food isn't going down.

Buy Low / Stack High.... Words to live by.

Only "financial" forums I visit (that also have survival boards by the way) is the goldismoney.info forums: goldismoney.info...

[edit on 13-12-2009 by infolurker]

reply to post by silent thunder


Silver to Gold was usually about equal because in Europe the Silver supply was not nearly as abundant in America, Asia, Africa etc. Gold is also much, much harder to mine. Most of the Worlds surface supplies of Gold are completely gone.. Gold is now mined literally miles beneath the Earths surface in some mines. The Worlds deepest, in South Africa, are Gold mines.

Silver however remains more abundant, and not nearly as hard to mine.

ALSO .. Gold since the turn of 20th centurt has had increasing usage.. From space craft and satalites to computer chips and cell phones.. gold is an amazing conductor of electricity, far surpassing Copper, and so Gold in many high tech items is used. Gold therefore, aside from Jewelry, has many other usages..

I don't find it surprising at all that Gold has surpassed Silver in cost..

However I DO agree that silver has higher returns.. if you are to invest in metals, Silver would provide the best solution at a much much cheaper cost. however in SHTF scenarios, I don't know how readily silver could be exchanged compared to Gold. Also, I'd say in such a case Platinum and other obscure metals would be near worthless.

Silver is my personal favorite simply because of price to return.. ultimately when it comes to investments its the percentage of return that matters.. whether what you invest in is $15 or $1020 ... the % is all that matters.

Originally posted by GreenBicMan
EDIT:

Also like I said, it doesnt matter if there is less of it, it matters what the market determines it worth. Btw, add about another 5000 hours of studying historical market psychology to that list.

[edit on 13-12-2009 by GreenBicMan]

If there is less of it , the market will determine it's worth more.

In the futures market there is a buyer and a seller for every contract. Sellers are obligated to provide a physical commodity if the buyer stands for delivery. With regard to Gold/Silver , sellers can be either legitimate producer/dealers with sufficient metal to back the contracts , or commercial banks short the metal. If the shorts are caught offside by a sudden spike in prices , they'll be forced to scramble (compete) for supply and cover into a rising market. Naturally this condition is exacerbated if supply is limited. Worse Case: Sufficient supply can't be brought to market and we get the much ballyhooed commercial signal failure.

Sinclair just posted a link that underscores the supply risk facing the commercial banks as they become further isolated in their massive short positions. At what price does supply re-enter the market ? When the market moves against him , the short sellers exposure is [theoretically] infinite.

Jim Sinclair’s Commentary

Something is extremely rotten in Denmark.

Rationing means a shortage of supply. Higher prices have always relieved tight supply dilemmas.

The Return of Gold and Silver Eagle Rationing

reply to post by OBE1


Fundaments only matter 50% of the time.

The other 50% is speculation and randomness.

The market determines prices and not all factors that should be determined in price not always are for a variety of reasons. This has been shown time and time again (example would be oil last year)

Originally posted by GreenBicMan
Fundaments only matter 50% of the time.

The other 50% is speculation and randomness.

Hi GBM. We're talking about a supply squeeze in the commodities market.

You might also try a google search under "short squeeze". If you only find references to the equities market , just substitute the word "silver" for "shares".

reply to post by OBE1


I thought we are talking about the gold/silver historical ratio?

Originally posted by GreenBicMan
Also like I said, it doesnt matter if there is less of it, it matters what the market determines it worth. Btw, add about another 5000 hours of studying historical market psychology to that list.

It matters if there is "less of it".

Originally posted by OBE1

If there is less of it , the market will determine it's worth more.

In the futures market there is a buyer and a seller for every contract. Sellers are obligated to provide a physical commodity if the buyer stands for delivery. With regard to Gold/Silver , sellers can be either legitimate producer/dealers with sufficient metal to back the contracts , or commercial banks short the metal. If the shorts are caught offside by a sudden spike in prices , they'll be forced to scramble (compete) for supply and cover into a rising market. Naturally this condition is exacerbated if supply is limited. Worse Case: Sufficient supply can't be brought to market and we get the much ballyhooed commercial signal failure.

Supply squeeze = short squeeze = fundamental supply issue...as in demand [for cover] overwhelms available supply (willing sellers).