Anyone investing in silver? question

[Magox]

Silver is catching fire simply because the fundamentals are ripe for these sort of movements. It is the poor man's gold, it's much cheaper and it's a tiny tiny market. It doesn't take that much money to move these markets and my guess is that gold and silver will continue to trend higher for the foreseeable future. It's simply a bet against fiat currencies and future inflation, and until the developed world decides to significantly tighten monetary policy, you can expect this to continue. Of course there will be some huge corrections and I'm thinking sometime between February and April we'll see it. At this stage I wouldn't be buying, even though it wouldn't surprise me to see it rally another five dollars or so in the short-term. medium to long-term I believe prices are going much higher than where they are today.

 

In regards to JP Morgan, yes, they made a $1.5 Billion purchase of Copper, well, they supposedly did. Speculation is that they made the purchase to supply their new Copper ETF. The paranoid silver bugs believe that JP Morgan has kept the prices depressed for a long time, I don't buy into that stuff, I can't give reasonable recommendations based on conspiracy theories, but rather on solid supply/demand fundamentals.

 

Just remember, as the value of paper goes down, hard assets go up. Considering that helicopter Ben last night on 60 minutes said he was open to more QE and that Europe is engaging in their own version of QE, it is hard to logically conceive that paper currencies won't get debased in this sort of environment. The smart money is in metals see David Einhorn, George Soros, Paul Tudor Jones and John Paulson.

[DC Tom]

Silver is catching fire simply because the fundamentals are ripe for these sort of movements. It is the poor man's gold, it's much cheaper and it's a tiny tiny market. It doesn't take that much money to move these markets and my guess is that gold and silver will continue to trend higher for the foreseeable future. It's simply a bet against fiat currencies and future inflation, and until the developed world decides to significantly tighten monetary policy, you can expect this to continue. Of course there will be some huge corrections and I'm thinking sometime between February and April we'll see it. At this stage I wouldn't be buying, even though it wouldn't surprise me to see it rally another five dollars or so in the short-term. medium to long-term I believe prices are going much higher than where they are today.

 

In regards to JP Morgan, yes, they made a $1.5 Billion purchase of Copper, well, they supposedly did. Speculation is that they made the purchase to supply their new Copper ETF. The paranoid silver bugs believe that JP Morgan has kept the prices depressed for a long time, I don't buy into that stuff, I can't give reasonable recommendations based on conspiracy theories, but rather on solid supply/demand fundamentals.

 

Just remember, as the value of paper goes down, hard assets go up. Considering that helicopter Ben last night on 60 minutes said he was open to more QE and that Europe is engaging in their own version of QE, it is hard to logically conceive that paper currencies won't get debased in this sort of environment. The smart money is in metals see David Einhorn, George Soros, Paul Tudor Jones and John Paulson.

 

Dinty Moore's up, too...

[Magox]

Dinty Moore's up, too...

cool

[/dev/null]

Hence the move on silver.

You're confusing Werewolves with Vampyres or Zombies

 

Now a Zombie Werewolf, that's pretty 'ing scary

[whateverdude]

Silver is catching fire simply because the fundamentals are ripe for these sort of movements. It is the poor man's gold, it's much cheaper and it's a tiny tiny market. It doesn't take that much money to move these markets and my guess is that gold and silver will continue to trend higher for the foreseeable future. It's simply a bet against fiat currencies and future inflation, and until the developed world decides to significantly tighten monetary policy, you can expect this to continue. Of course there will be some huge corrections and I'm thinking sometime between February and April we'll see it. At this stage I wouldn't be buying, even though it wouldn't surprise me to see it rally another five dollars or so in the short-term. medium to long-term I believe prices are going much higher than where they are today.

 

In regards to JP Morgan, yes, they made a $1.5 Billion purchase of Copper, well, they supposedly did. Speculation is that they made the purchase to supply their new Copper ETF. The paranoid silver bugs believe that JP Morgan has kept the prices depressed for a long time, I don't buy into that stuff, I can't give reasonable recommendations based on conspiracy theories, but rather on solid supply/demand fundamentals.

 

Just remember, as the value of paper goes down, hard assets go up. Considering that helicopter Ben last night on 60 minutes said he was open to more QE and that Europe is engaging in their own version of QE, it is hard to logically conceive that paper currencies won't get debased in this sort of environment. The smart money is in metals see David Einhorn, George Soros, Paul Tudor Jones and John Paulson.

 

I also add that silver is still above it's historic silver to gold ratio, so there is room for growth.

[Keukasmallies]

Sheldon Silver....?

[Magox]

I also add that silver is still above it's historic silver to gold ratio, so there is room for growth.

I will say this, it is below it's gold/silver ratio ever since I've been doing this. Ever since I've been involved the average has been about 50-55/1 Now it stands at 47/1

 

During the crisis of 2008 that ratio had gone up to as high as 83/1

[TPS]

Silver is catching fire simply because the fundamentals are ripe for these sort of movements. It is the poor man's gold, it's much cheaper and it's a tiny tiny market. It doesn't take that much money to move these markets and my guess is that gold and silver will continue to trend higher for the foreseeable future. It's simply a bet against fiat currencies and future inflation, and until the developed world decides to significantly tighten monetary policy, you can expect this to continue. Of course there will be some huge corrections and I'm thinking sometime between February and April we'll see it. At this stage I wouldn't be buying, even though it wouldn't surprise me to see it rally another five dollars or so in the short-term. medium to long-term I believe prices are going much higher than where they are today.

 

In regards to JP Morgan, yes, they made a $1.5 Billion purchase of Copper, well, they supposedly did. Speculation is that they made the purchase to supply their new Copper ETF. The paranoid silver bugs believe that JP Morgan has kept the prices depressed for a long time, I don't buy into that stuff, I can't give reasonable recommendations based on conspiracy theories, but rather on solid supply/demand fundamentals.

 

Just remember, as the value of paper goes down, hard assets go up. Considering that helicopter Ben last night on 60 minutes said he was open to more QE and that Europe is engaging in their own version of QE, it is hard to logically conceive that paper currencies won't get debased in this sort of environment. The smart money is in metals see David Einhorn, George Soros, Paul Tudor Jones and John Paulson.

Gee, a big bank hoards a commodity and helps drive prices up. Those funny fundamentals...

[Magox]

Gee, a big bank hoards a commodity and helps drive prices up. Those funny fundamentals...

So I suppose you are against all physical commodity ETF's.

[DC Tom]

Gee, a big bank hoards a commodity and helps drive prices up. Those funny fundamentals...

 

Bank creates an ETF backed by a physical commodity, bank is evil.

 

But bank creates an ETF backed by futures on a physical commodity, bank is evil.

 

 

 

So basically...commodity markets are evil no matter what?

[TPS]

Bank creates an ETF backed by a physical commodity, bank is evil.

 

But bank creates an ETF backed by futures on a physical commodity, bank is evil.

 

So basically...commodity markets are evil no matter what?

I assume they are "playing by the rules." You said they are evil, I didn't. As I have always stated, or quoted Keynes, while futures/derivative markets need speculators for their liquidity; when speculators are driving the prices, then the system becomes less efficient and more casino-like.

 

Big banks and HFs have the capital to buy and hold and influence the system to their benefit, and to the detriment of the actual producers using these commodities. If you want to create ETFs with gold or anything that's not an essential input to production, eat your heart out. This financialization of commodities is creating one big bubble, and it's killing the actual producers who use futures to hedge, because as prices rise it forces them to come up with more capital on margin accounts. In the end, all of us will end up paying for their profits they created because of their market power.

 

Futures are easy to manipulate because there are fewer contracts, which is why there were always contract limits. Now that banks have become "owners" of the underlying commodities, they are viewed as "hedgers" not subject to the same limits. If investors want to profit off of commodities, then buy shares of the companies that mine, drill, etc. This will not end well.