Warning: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in ..../includes/class_bootstrap.php(430) : eval()'d code on line 134

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19
Physical silver running out because its spot price does not reflect true investment demand - Page 3
Page 3 of 3 FirstFirst 123
Results 21 to 28 of 28

Thread: Physical silver running out because its spot price does not reflect true investment demand

  1. #21
    Join Date
    Oct 2011
    Posts
    1

    Default

    Why would there be a flight to dollar if equity markets tank? I just want your opinion.

    I understand in certain countries there is a flight to dollar during economic or political uncertainties. Case in point Iran; in the last couple of years dollar has appreciated well over 30% (so has gold and silver by the way) believe it or not as hedge against inflation!!

    I agree with you in regards to silver having a very small market as opposed to gold; therefore more vulnerable to market manipulations therefore small investors should be very VERY careful!

    We should not underestimate the respect the dollar enjoys in international markets especially at this time. I feel if the economic issues in Greece, Portugal, Italy etc. are not resolved; there will be a flight to dollar vs. gold and silver.

    As battered as the U.S economy has become it is still the most powerful in the world with tremendous flexibility to maneuver and out maneuver other up and coming big economies such as China etc.

    One last thing; even China measures her economic prosperity in "$" not in silver or gold ( we are even told how much their gold and silver reserves are worth in $).

  2. #22
    Join Date
    Jan 2010
    Location
    SC
    Posts
    427

    Default

    RE: #21

    Here you go.

    1. FEAR!

    2. "There's nothing wrong with cash. It gives you time to think." ~Bob Prechter

    3. "In a bear market, a rube with money in the mattress can outperform momentum investors, value investors, small caps, large caps, growth funds, balanced funds, and even Dogs of the Sow" (13.

    4. How Cash Fared In Down Years for Stocks

    Year_______________Lg Co Stocks_________Cash (USD & T-Bill)

    1931_______________-43.34______________+1.07
    1937_______________-35.03______________+.31
    1941_______________-11.59______________+.06
    1946________________-8.07______________+3.5
    1957_______________-10.78______________+3.14
    1966_______________-10.06______________+4.76
    1969_______________+8.50_______________+6.58
    1973_______________-14.8_______________+6.9
    1974_______________-26.5_______________+8.1
    1977_______________-7.4________________+5.1
    1981_______________-5__________________+14.71
    1990_______________-3.2________________+8.4
    2000_______________???__________________???
    2008_______________???__________________???
    2009_______________???__________________???

    5. General rule: "It takes seven and a half years for a stockholder in a bear market to catch up to a cashholder, but cash does best in periods when interest rates are rising....

    6. "The U.S. dollar, now inevitably doomed as the reserve currency in the future, will have one last massive rally, as the stock market melts down...."
    ~J. A. Shepherd (November 2010)


    Thank you for asking...I needed to reread The Bear Book.



    Source:
    (Rothchild, John. The Bear Book. 1998. pg138 'Cash Is Trash, But Not Always')
    Last edited by jimi; 8th October 2011 at 15:03.

  3. #23
    Join Date
    Aug 2011
    Posts
    167

    Default

    Quote Originally Posted by Matthew Shelley View Post
    For the people arguing ratios and above and below ground amounts, keep in mind you are discussing two commodities whose uses are very dissimilar other than the fact that some people like to collect them.
    right. the two sides are supply and DEMAND. there is no universal law that proves that the ratio of supply for two items has to reflect the price in the same ratio. if a lot more money want's to go into gold for whatever reasons then the price will not be in line with "natural" ratio in the ground vs. silver. there is no "has to go" price ratio. you can't discount human thinking and wants and desires which do not follow any mathmatical formula that I know of.

  4. #24
    Join Date
    Mar 2008
    Location
    Winterpeg, Manisnowba ^_-
    Posts
    515

    Default

    Quote Originally Posted by jimi View Post
    2. "There's nothing wrong with cash. It gives you time to think." ~Bob Prechter
    Usually, but with some exceptions, in Germany 1923 that "time to think"
    was pretty darn short.

    That said sometimes things that just don't make sense do happen, so if
    your timing is right it can pay to bet on cash. Whatever you choose to
    do (or not do) you are still placing a bet.

  5. #25
    Join Date
    Apr 2010
    Posts
    3,669

    Default

    Quote Originally Posted by fansubs_ca View Post
    Usually, but with some exceptions, in Germany 1923 that "time to think"
    was pretty darn short.
    Correct. After 5 short years, by 1923, the German Gold Mark rose (fell) from ONE to ONE TRILLION. Not the best time to be holding cash in your wheelbarrow.

  6. #26
    Join Date
    Apr 2009
    Posts
    5,003

    Default

    Quote Originally Posted by collector View Post
    you can't discount human thinking and wants and desires which do not follow any mathmatical formula that I know of.
    That would be called FEAR & GREED -- the two most immense market drivers, of any market, of all time.
    Caedite eos.

  7. #27
    Join Date
    Apr 2009
    Posts
    5,003

    Default

    Quote Originally Posted by Shawnd View Post
    Why would there be a flight to dollar if equity markets tank? I just want your opinion.
    Because cash is still king, regardless of what anyone says or wants/needs to believe -- especially in the financial world.
    Things start tanking, people start selling...EVERYTHING (eg. 200.
    The ultimate safety in a meltdown is liquidity, how fast can you get in or out.
    Cash is the fastest.


    Quote Originally Posted by Shawnd View Post
    As battered as the U.S economy has become it is still the most powerful in the world with tremendous flexibility to maneuver and out maneuver other up and coming big economies such as China etc.
    It's rather ironic: the US caused this meltdown, but it will be the last to meltdown.
    Caedite eos.

  8. #28
    Join Date
    Apr 2010
    Posts
    3,669

    Default

    Cash is still fine in a hyper inflationary event: if you have a fast wheelbarrow.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •