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"I own silver, but if it keeps going up, it could turn into a problem if it goes parabolic," If it hit $150 it would look "very dangerous" says Jim Rogers.
"I do not have any prices in my targets. If suddenly World War III breaks out, then I would not sell silver at $200 this year. So it depends on what is happening and what is causing this," he said.
"I certainly hope silver goes down for a while. If it goes down, I hope I would buy more, and if it goes up too much too fast, then I have to sell."
Originally posted by LazyGuy
I think don't that Silver hitting $150 is likely to happen.
There's a new law going into effect in July that makes it illegal for people living in the US to trade in Gold or Silver.
Sounds to me like TPTB are taking the bull by the horns so to speak.
Read about it here...
Gold/Silver OTC trading illegal for US residents after July 15, 2011?edit on 19-6-2011 by LazyGuy because: wording change for clarity
Originally posted by QuantumDisciple
Please show me this law. Did you read it? I believe it pertains to OTC leveraged derivitives of 10:1 or more.
If silver hits $150 an ounce this year and gold rises respectively you would likely see a full collapse of the economy.
To your second point about the price of silver by the end of the year let me say this: It is a very tough call. The reason is that once silver is solidly past the $50 mark (probably around $55) there will be nearly no one selling silver because no one ever has bought it for higher than $50. This will cause the silver short squeeze out into the open, and the price will skyrocket. It is impossible to tell where it will stop because this is a once in a lifetime phenomena. Where ever it does stop will be the new floor for silver, and it will not be as low as it is now for at least the next 50 years.
Let me also say that my predictions are based on the physical price of silver (not spot). If spot price is $35 but retailers are selling a monster box for $50/ounce, then the real price is $50. Although once JP Morgan implodes the spot price will probably sync up again with the physical
So my prediction is that the price will be around $120-150 an ounce by the end of Q4.
But again, picking that number is near impossible, its like trying to count all the stars in the sky. You know there are a lot, but you can never get an accurate count
From 2005-2011 Gold has increased 300% .. and it took the single worst financial calamity along with the largest inflation methods ever undertaken by the Reserve to get that result. To add an additional 400% increase would mean a massive debasing of the currency, leading to price inclines across the economic spectrum of 100-200% .. Gasoline would cost $12.00/g bread and milk and other staples would be to expensive to buy.
Not to mention if you actually look at spot prices from 2000-2011 you can see an obvious run on silver or perhaps institutionalized manipulation especially from mid-2010 to now. Blatantly. I would say right now the real value of silver somewhere around $18-20/oz
I agree 150 seems unlikely. I think that silver is no longer entirely related with hedging against inflation. China has been buying up silver for industrial use. Silver is used in an array of green technologies, and top end electronics. Silver could begin to be a mix of a rare earth metal, and an investment against inflation.
The manipulation is definitely real, but I think it is keeping the price artificially low. The crash from 50 to 34 was due to overnight margin changes. Once the Hong Kong exchange gets going, and if the morg cannot short both gold and silver simultaneously we could see a move up. 150 though is extremely optimistic by any indication.
Hi. When you can have a discussion about economics without quoting, sourcing, or talking about in anyway the weimar republic I'll talk to you. It has nothing to do with anything except .... the weimar republic.
And by the way adjusted for real inflation Silver would only see an increase around 10-15% at most per annum.
H.L. Hunt's Boys and the Circle K Cowboys
In the fall of 1979 the silver price doubled from $8 to $16/oz in only two months. Other syndicates with big money behind them started buying silver. The COMEX and the CBOT started to panic. In late 1979 the warehouses of the two exchanges only held 120 million oz of silver and that amount was traded in October alone.
Late in 1979 the CBOT changed the rules and stated that no investor could hold over 3 million oz of silver contracts and the margin requirement were raised. All contracts over 3 million oz per trader must be liquidated by February of 1980.
Bunker accused the COMEX and CBOT board members of having a financial interest in the silver market themselves. Investigations later found that many had substantial silver short positions. Bunker knew that a shortage now existed or they would not be screaming so loudly. He bought even more. The price on the last day of 1979 was $34.45/oz.
Finally on January 7th of 1980 the COMEX changed their rules to only allow 10 million/oz of contracts per trader and that all contracts over that amount must be liquidated before February 18th. The CFTC promptly backed up the ruling. On January 17th silver hit $50/oz, Bunker had continued to buy. At that point in time the Hunt's silver position was worth $4.5 billion dollars bringing their profits in silver to $3.5 billion dollars. On January 21st the COMEX announced that it was suspending trading in silver. They would only accept liquidation orders. - Full Text
The 1980 peak & pop occured in January, before congress authorized the treasury to auction off what was left of the US Strategic Silver Stockpile.....sold at the behest of the commercial Silver lobby I might add, but that's another story.
Along with adding credibility and authenticity to the writers position, linking to relevant material can also aid the reader when he's attempting to follow paragraph after paragraph of a seemingly random, mish-mashy, incoherent thought process.
Originally posted by Rockpuck
Emerging markets have their own markets for precious metals.. If I were to go to India, or the ME, I could purchase Gold far cheaper than if I purchased here in the States. Not surprising that most jewelers and minters buy their gold and jewels from SE Asia and the ME.
Originally posted by Rockpuck
What Was The Price Of Silver In 1980?
Ever since the Great Depression the United States had held two billion ounces of silver in the U.S. Strategic Stockpile.
In other words, the government loaned out, over time, two billion ounces of silver metal in return for two billion ounces of paper silver (IOUs).
Then the U.S. government demanded payment in some of its silver loans only to find that the silver had been consumed. All it got back was paper money, but little silver. - Full Text
Originally posted by Rockpuck
At the time the Government exhausted it's own reserves of metals by infusing them into the markets as loans....