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Nickelless
Administrator
USA
5580 Posts |
 Posted - 02/29/2008 : 06:47:35
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Or is it a bit of both?
I was talking to a friend last night about how silver has really had an amazing climb over the past several weeks, and he said I was looking at it all wrong, that silver really hasn't climbed that much, the dollar is just dropping. What's the best way to view this? IMO, silver seems to be rising much more quickly than the dollar is dropping, but which one is the horse and which one is the carriage?
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Edited by - Nickelless on 02/29/2008 06:49:27 |
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 02/29/2008 : 06:52:53
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Hard to say which is leading, but I think BOTH are definitely effecting the price of all metals. Probably another good reason to buy now....
Deal |
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Plain and simple.
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- Samuel Adams |
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Frugi
Administrator
USA
627 Posts |
Posted - 02/29/2008 : 10:20:11
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Silver IS advancing and the dollar IS retreating.
1 silver is rising due to it's industrial use and it is almost never recycled once it is put into say a dvd player, when it breaks we throw them away and get another-that silver is gone forever (or until someone decides to mine landfills).
2 silver is a placier metal meaning it is found near the earth's surface, not in deep mines. It is found as by products of other metals and compounds. We have been removing this silver from the earth for 100,000 years, it is becoming harder to locate in large quantities and still have it be worthwhile. (tons of silver lie under the earths crust under the ocean, and we can get to it, but it would be too costly).[too costly that is unless the price rises quite a bit]
3 all democracy led nations have fallen in the past, the most famous being the Roman Empire which lasted 2000+ years, it fell. We are falling. No matter what is happening in the metal market, the dollar will fall and as it does it will appear as though silver may be rising and even though it is, it just appears as though the dollar is losing ground faster but it is a balance between silver rising due to necessity and the dollar dropping due to destiny. |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 03/05/2008 : 12:05:18
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I think that when you boil everything down all that really matters is purchasing power. Assuming that inflation is running at 7%-10% a year right now, everything above a 7%-10% gain per year in the price of something that you own is cake. Enjoy...
On the flip side, if you own something (example dollars in a savings account) that are gaining less than 7%-10% per year, you are losing purchasing power. In other words, somebody is eating your cake.
Note: Please substitute in your own inflation numbers at will, but I think that the basic premise holds true.
So as far as silver is concerned I agree with Frugi that the answer is both the dollar is falling and silver is rising. If it was just the dollar falling, your purchasing power would generally be staying flat with silver... |
Edited by - horgad on 03/05/2008 12:08:29 |
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Is silver advancing, or is the dollar retreating?
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