The great silver crash-sell sell sell

[Bigtone]

http://www.theaustralian.com.au/bus...shed-in-sell-off/story-e6frg91o-1226048209232

The great silver bubble of 2011 has come to a crashing end, this was inevitable as the price had to return to the long term mean (silver price vs roadside field mushrooms ratio)

u greedy silver hoarders have now learned ur lesson and should sell immediately.

11% drop in 12 minutes means the asset will drop 500,000% over the following year.

i am not a silver bear just a realist, it was an unsustainable bubble and shortly all Australians will be able to buy in at fair prices

 

[Ocean Architect]

Disagree. Completely and utterly.

 

[annie lumen]

All bubbles must burst. Gold and silver are probably the biggest bubbles of the last few decades.

 

[Comper100]

Oh many Lols to be had on this one. This is the same logic that Gordon Brown and his band of merry men took when they sold off a heap of gold back when it was 280 quid an ounce.

Only lessons i've learnt are profitable ones

 

[Ocean Architect]

All bubbles must burst. Gold and silver are probably the biggest bubbles of the last few decades.

China announced that they want to buy a trillion dollars worth of gold. I'd say that the US dollar is the biggest bubbles of the last few decades

 

[Ausprop]

ha ha - a good opportunity for me to pick a little up

 

[Aaron Sice]

good work Bigtone. kudos.

i'm buying up huge now with super money, the correction came much quicker than i thought it would.

now silver will be off. and right in the middle of the rush, i'll be watching gold.

 

[eKwatee]

I'd like to see the price go down a little further so I can buy a little more. I'm looking to hold silver long term so it would be good to drop a little more so I can buy at a discount.

 

[Ridin-High]

good work Bigtone. kudos.

i'm buying up huge now with super money, the correction came much quicker than i thought it would.

now silver will be off. and right in the middle of the rush, i'll be watching gold.

How do you value silver? (serious question)

Is it based on the perception paper currency has no value?

Regards,

RH

 

[BV]

Sunfish
What do you think?
Is the end near?

 

[hobo-jo]

Geez I hope they introduce a First Silver Buyers Grant so we can keep the bubble propped up it's just really unaffordable these days.

 

[Cupcakes]

I don't understand the whole gold and silver excitement. All gold and silver does is hedge against inflation and stagflation. X amount of gold today buys 1 loaf of bread...in 100 years time won't that same X amount of gold still only buy 1 loaf of bread? It just preserves your wealth? It doesn't really make you any richer?

Why are people getting all excited like it's going to make them gazillioinaires?

Wouldn't it be easy to tell if gold and silver were bubbles because their purchasing power would just go down?

I know silvers a little different to gold because it has other uses but meh..Am I missing something?

Gold and silver would have just fallen today because the whole Osama thing restored some confidence in the US.

I agree it's a good time to buy if you're hedging and think stagflation is going to be a problem though.

 

[eKwatee]

http://www.youtube.com/watch?feature=player_embedded&v=eLHUOnVEOBE

Interesting.

 

[Ocean Architect]

I don't understand the whole gold and silver excitement. All gold and silver does is hedge against inflation and stagflation. X amount of gold today buys 1 loaf of bread...in 100 years time won't that same X amount of gold still only buy 1 loaf of bread? It just preserves your wealth? It doesn't really make you any richer?

Why are people getting all excited like it's going to make them gazillioinaires?

The value of the US dollar has fallen some 97% since 1900. Back then you could buy a loaf bread for 5c or something.

The reason people are getting excited is because interest rates have been very low for a long time (so low that putting your cash in a bank account was virtually pointless) which then forced people to either enter the property or stock market. With the announcement that most of the governments in the world are printing money like mad, putting your money in silver today will not only preserve your purchasing power, but depending on where things will go, may even improve it.

 

[Intrinsic_Value]

. With the announcement that most of the governments in the world are printing money like mad, putting your money in silver today will not only preserve your purchasing power, but depending on where things will go, may even improve it.

I think alot of people are going to loose a lot of purchasing power by thinking along these lines.

If i buy silver today, am i guaranteed that it will have the same purchasing power as in a week, a month, a years time????

Silvers price will be governed by a mix of push and pull factors all of which will change over time.

 

[Ocean Architect]

I think alot of people are going to loose a lot of purchasing power by thinking along these lines.

If i buy silver today, am i guaranteed that it will have the same purchasing power as in a week, a month, a years time????

Silvers price will be governed by a mix of push and pull factors all of which will change over time.

There are no guarantees at all in life. However, there are probably outcomes based on a mechanism of action. What is certain is that most countries in the world are printing dollars/yen/pounds like mad. What is certain is that there are finite resources/goods in the world. If you have a finite amount of resources that are denominated in an increasing number of dollars, then the logical conclusion is that the nominal price of those resources will go up as the number of dollars go up, with the purchasing power of all dollars in existance in inverse proportion to the number of dollars out there.

It's hardly rocket science. The more dollars you print, the more of them you need to buy something, hence lower purchasing power.

The thing about silver is that, unlike gold, it has numerous industrial applications and is consumed over time, and so whilst I can't give you certainty (I'm not certain I'll be alive to press the 'post reply' button) I can say that the fundamentals are there for silver to increase in nominal value when represented across a basket of currencies.

 

[Sunfish]

Sunfish
What do you think?
Is the end near?

Interesting times.

 

[Sunfish]

I have been saying "Gold good, Silver better" for seven years now. During this time gold is up X5 and silver X7 (in US$). Why should a sell off on a quiet May Day weekend cause me grief?

Bigtone (and others) don't have the nerve to trade so leave it to others. Just don't try to give advice.

 

[BV]

Interesting times.

SF

Very interesting times indeed.

However, as the USD is becoming more and more worthless those who have stacks of USD will probably want to convert it to gold or buy assets such as companies, properties etc so I don't think the growth in metals, shares and property will cease anytime soon.

I'm not bullish as such, and metals like shares and property can go up and down and sideways before they take off again but judging from the dark economic clouds on the horizon, UP is a real possibility....

 

[Graemsay]

Gold is said to be a hedge against inflation, but having gone up fivefold in the last decade, it's become a very expensive insurance policy.

In short, I'm wondering if chaos and uncertainty have been oversold. And I'm not convinced that if a real Doom and Gloom scenario did come to pass that being fully invested in a precious metal either stored in someone else's vault, or, even worse, held as an ETF, would actually prove to be that clever.