quote:

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Originally posted by wagsthadog

Hi all-

Oohh, I know I'm going to polarize some members on this one, but I'm just not sold on silver. I haven't been really impressed with its performance even when it WAS over $20/oz.

Now, I DO roll hunt, and I DO have lots of silver, and I do like it, but it just seems that gold is doing all the work these days. Every time gold jumps $20 or more dollars, silver gains like 11c. big whoop.

However, silver is right there to lose almost a dollar whenever gold drops by about $20.

I know they say that silver gets USED UP, while most gold is still recoverable, but I just don't think I'll ever see silver +$30 in my lifetime (and I'm in my 20's)

JMO
wags

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quote:

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Originally posted by wagsthadog

Hi all-

Oohh, I know I'm going to polarize some members on this one, but I'm just not sold on silver. I haven't been really impressed with its performance even when it WAS over $20/oz.

Now, I DO roll hunt, and I DO have lots of silver, and I do like it, but it just seems that gold is doing all the work these days. Every time gold jumps $20 or more dollars, silver gains like 11c. big whoop.

However, silver is right there to lose almost a dollar whenever gold drops by about $20.

I know they say that silver gets USED UP, while most gold is still recoverable, but I just don't think I'll ever see silver +$30 in my lifetime (and I'm in my 20's)

JMO
wags

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quote:

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Originally posted by wagsthadog

Hi all-

Oohh, I know I'm going to polarize some members on this one, but I'm just not sold on silver. I haven't been really impressed with its performance even when it WAS over $20/oz.

Now, I DO roll hunt, and I DO have lots of silver, and I do like it, but it just seems that gold is doing all the work these days. Every time gold jumps $20 or more dollars, silver gains like 11c. big whoop.

However, silver is right there to lose almost a dollar whenever gold drops by about $20.

I know they say that silver gets USED UP, while most gold is still recoverable, but I just don't think I'll ever see silver +$30 in my lifetime (and I'm in my 20's)

JMO
wags

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quote:

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Originally posted by theo

Given its recent performance, its perfectly understandable to question the prospects of silver. However, let me go through a few supporting arguments for silver.

1. The silver/gold in the earth's crust ratio is suppose to be about 15:1 and up until about 100 years ago the gold was priced at about 15 times the silver price. But at about the turn of the century there was an effort to de-monetize silver, in other words remove it as a metal that backs currency and change it more into an industrial metal. This left gold as the sole metal for backing currency, and in the following decades the gold/silver price ratio rose steadily to today's ratio of about 70:1. If silver can re-establish itself as a backing for money that price ratio will move closer to 15:1.

2. If you believe Ted Butler certain banks have been shorting silver in addition to gold with the intent of containing its price. If this is at all true it is an admission that silver is in fact a monetary metal. If silver is widely acknowledged as a backing of currency; it will increase the price silver, not just in relation to the dollar, but in relation to gold as well.

3. If the currency does collapse, gold will not be able to support the currency alone. Since there is already a large supply of silver coins, silver (and perhaps nickel and copper)will also be needed to keep some semblance of commerce going. I once mentioned to my financial advisor that I was buying precious metal coins. He asked me, "Do you think that you'll be buying a loaf of bread with a gold double eagle coin?" "Of course not." I replied, "I'll be using silver dimes for that."

4. Finally, although I do own some gold and I believe it to be a sound investment, I can't shake the feeling that its a little too trendy right now. Dozens of commercials and much of the mainstream media touts gold as the true safe haven when the dollar gets shaky. I think silver has great upside for no other reason than its value and history are still unknown to most investors.

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