BEARISH Column on Silver!

[DoChenRollingBearing]

...

Tatyana Shumway of Barron's wrote in this weekend's issue a bearish piece of silver: "Silver Buried by Supply Glut".

She looks at increasing supply (16% greater supply for physical silver than demand in 2014) as well as touching base with three experts on the metal.

OK........., we now have her line in the sand, she is bearish, and the price of silver is $19.73.



Let's see how well she predicts the future!

"BEARISH Column on Silver"

http://goo.gl/y2Dvfg

 

[rblong2us]

so remind me ....

how did we think we could bring down JP Morgan by buying silver ?

and what happens when the far east Govs / C.B.s thinks they have 'enough' gold and roll back their buying ? Will there then be a surplus of supply over demand or will the monetary aspect of gold make it behave differently to silver ?

I guess if the analysis is only looking at silver as a commodity and ignores the pm / safe storage of wealth aspect then it is a fair assessment.

 

[mmerlinn]

As long as silver is PRIMARILY an industrial metal, silver prices will remain pretty much in the dumps. When silver regains its status as PRIMARILY a MONETARY metal, silver will soar to RECORD highs when measured by our rubber dollars. When measured in GOLD, monetary silver will RETURN to its historical 16 to 1 ratio from its current 66 to 1 ratio. Based on today's gold prices, that would put silver at $81.50 per ounce.

Sooner or later silver ALWAYS returns as a monetary metal. The PTB cannot stop it from happening.

My advice? Keep stacking silver. There is almost no downside risk, and tremendous upside potential. The risk to reward ratio is solidly on the side of the stacker.

 

[ancona]

Silver is already a monetary metal all across Asia. We are pretty arrogant when we use the Comex/LBMA metric to determine worth of silver, since there are far, far more Asians on the planet than there are Anglo Saxons. It will be China and Asia in general that decide to use silver and gold as their monetary metric, not the US.

 

[DoChenRollingBearing]

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Silver is already known as "the Devil's Metal", I suppose because so many have gotten burned buying too high (myself included, most of my silver I bought at $20 or more per oz). I am comfortable with the amount of silver (including "junk silver") that I own.

I like silver for its likely eventual role, yes, as a monetary metal. And if things get bad, silver would probably become the "new money" (currency). Although one of FOFOA's followers LIVED in Romania during their hyperinflation, he found that people did NOT transact with silver, they did with FIAT$! <--- Very quickly!!

EDIT:

On occasion I like to read and even comment on opinions that are not in line with my own. I think silver has a fine future, but I like to hear other views. "Everything goes into the hopper" is how I like to explore issues of interest...

 

[mmerlinn]

Although one of FOFOA's followers LIVED in Romania during their hyperinflation, he found that people did NOT transact with silver, they did with FIAT$! <--- Very quickly!!

In hyperinflation if one accepts FIAT$, one has NO choice other than to flip it INSTANTLY, assuming that one can find the next sucker fast enough.

For silver to be accepted, it must have a recognizable value. I suspect there was little or no silver available in Romania at the time that had recognizable value.

"Junk" silver here has recognizable value, but one must be educated in the difference between silver coins and similar looking fake coins as well as what the true value is. So, when we go down, I strongly suspect that, when available, junk silver will again be used for money, at several times its current value. Private mint silver rounds etc. generally do not have recognizable value to the general public, so I suspect their use as money will be limited.

Even if silver does not return to general usage as money, those in the know will use it forcing silver to return to its monetary ratio of 16 to 1 versus gold. Anyone with silver will be able to sell it at the higher prices just like any other commodity.