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newbie with questions
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Thread: newbie with questions

  1. #1
    Join Date
    Oct 2008
    Posts
    22

    Red face newbie with questions

    Hi All. I just joined this form. I am looking forward to learning more about buying silver.

    Please forgive me if I ask stupid questions.

    I started buying silver about a month ago. I must admit, I did not understand what happened yesterday when it fell so far. But after reading here, I think I am starting to get it.

    One question I have....why would very wealthy people invest in silver when they can invest in gold? Physical gold is easier to store and they can afford it. Is it paranoid of me to think that TPTB would somehow manipulate silver to be worthless because it is owned by those that cannot afford gold?

    Sorry if that is a stupid question...like I said, I tend to be paranoid..

  2. #2
    Join Date
    May 2008
    Location
    Guadalatucky Mexifornia
    Posts
    897

    Default

    Silver has industrial uses i.e. photography, electronics, etc. Gold is just purdy.

  3. #3
    Join Date
    Mar 2008
    Posts
    1,760

    Default

    Is it paranoid of me to think that TPTB would somehow manipulate silver to be worthless because it is owned by those that cannot afford gold?
    No, that is probably not a paranoid assumption. However, regardless of the investment value of silver, it's true value lies in it's ability to be the very best metal on the face of the earth for conducting electricity. Your cell phone, radio, TV and computer cannot run without it, and there is no replacement for silver. Furthermore, and perhaps more importantly, today's high tech military simply could not run without it.

    If they are trying to manipulate silver down right now, the most obvious reason is to discourage the masses of "little guys" from taking their money out of the banks and investing it in a safe haven, and silver has always been "the poor man's gold" or the safe haven of choice for the little guys.

    This manipulation down is temporary and cannot remain. I don't know how long it will last, but silver is too valuable a commodity on thousands of different fronts to be kept down for very long.

    They can't build a military transport plane without it. And when prices for spot have been manipulated down this low, it is no longer profitable to mine silver. The military cannot run for very long without it. Silver will have to come up again eventually.

  4. #4
    Join Date
    Oct 2008
    Posts
    22

    Default

    You explained that very clearly and I thank you for taking the time to explain it to me. Investing in silver is scary for me and to have seen it drop like that did nothing for my confidence. But I feel better now and will be making some more purchases soon. Thanks!

  5. #5
    Join Date
    Jun 2008
    Location
    Florida -The Redneck Riviera
    Posts
    1,734

    Default

    I suspect that the collapse or devaluation of the dollar is not too far off, certainly not more than two years. The devaluation will have to be at least 4:1 and probably much more. You can get a good handle on this ratio by the amount of debt monitization plus new credit (times 6) as a ratio of current M2. If the dollar is rejected as the reserve currency, then all foreign dollars will return home. I still can't find out exactly how much that is, but it is between 12 & 20 trillion. Imagine the inflation that would cause!

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