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Rob108
25th August 2006, 07:17
There is a GREAT future for silver in the monetary sense since hardly anyone accepts the fact that silver is money. So many articles are their on silver concluding that "a price range of 9 to 12 USD is reasonable". These people, "great analysts", seemingly don't understand that the accepted monetary system is about to crack. They don't understand that countries like Mexico or Peru will adopt a Silver Standard somehow or other when gold keeps rising. They don't understand that next year there are ten more silver ETF's. They don't understand how tiny the silver market right now is in monetary terms. They don't understand that there will be an increase in silver mining but that the costs of mining will increase also and that some governments will take hold of silver mines and keep the silver for itself as protection for their national monetary fundamentals.

How lucky we are so many people right now don't understand money or are not interested or put all their faith in "THE GOVERNMENT" and its lies and arrogance.

oroborean
1st September 2006, 17:39
i'm of two minds on the "silver is money" proposition. historically, of course, it's true that silver has been used as an exchangeable form of currency. my concern is that, if there is an economic catastrophe, the commodities of most value would be food, clothing and shelter -- the necessities of life. Silver has very little value when survival is the primary goal. Once populations stabilized and economies were re-organized, then a metal-backed currency might then become the standard. But people probably won't admit the defeat of their currencies absent some serious financial calamity -- and despite what people say about inflation, the value of the US$ is supported by oil and the US military. For me, at least, the greatest investment potential for silver remains within the current fiat system under perfectly ordinary supply and demand forces -- not in some apocalyptic scenario where the government wants to confiscate your metals or hungry looters want to rob you of your wealth.

Ardent Listener
1st September 2006, 20:30
For me, at least, the greatest investment potential for silver remains within the current fiat system under perfectly ordinary supply and demand forces -- not in some apocalyptic scenario where the government wants to confiscate your metals or hungry looters want to rob you of your wealth.

:?: Perfectly ordinary supply and demand forces? Is that what we have now? So much for the talk of a silver defult then.

oroborean
2nd September 2006, 15:03
i would consider a silver default a perfectly normal, albeit it rare, supply and demand phenomenon. less supply and rising demand eventually produce a default, which is not an absolute lack of metal, just an inability to deliver on schedule. naturally, by basic supply and demand curve movement, the price goes up in terms of fed notes.

the default scenario is qualitatively different from rob's "crack" of the money system where silver's price goes up, not because of supply and demand forces, but because there is some failure of paper currencies and a general perception of inherent value in metal. i believe the turbulence of a total global currency meltdown to be undesirable and not necessary for silver to be a valuable investment.

Ardent Listener
2nd September 2006, 17:16
i believe the turbulence of a total global currency meltdown to be undesirable and not necessary for silver to be a valuable investment.

With that I can most certainly agree.

oroborean
3rd September 2006, 11:34
based on the limitations of your agreement, i assume you feel that a silver default is not a supply/demand issue. is this because you feel the silver market is manipulated and that the default is related to the large short position on the comex? from my understanding, it's not known whether that position is naked short partially or entirely. either way, to me, default is a decrease in supply which causes a price spike as per economics 101. is there any other way to view it?

Rob108
4th September 2006, 07:26
Present day fiat system will crack according to my idea. It won't disappear completely but it will have to be adjusted to a system in which paper and electronic numbers will have a physical gold/silver backing. The connection is completely lost since Nixon. The Cosmic System, Mother Nature or God will force politicians to again adopt some kind of gold/silver standard. It may take some time but it is inevitable. In other words, when this system cracks it doesn't mean that there is no way to save us from complete collapse in terms of doing financial transactions. There only has to be made a serious adjustment. This will take gold and silver to more reasonable prices during the proces. Right now they're still very, very cheap.

Regarding the supply/demand situation in silver but also gold I am convinced that these markets are being heavily manipulated. However, I also feel that that's more or less a normal situation although a crinimal one. I accept Ted Butler findings in this matter. The only thing is that these manipulators are denying the force of the Cosmic System. They are not in harmony with the CSystem and this will bring about their destruction, serious defeat or surrender. It is better to try and manipulate with the help of the CSystem without being attached to the results.