Well then...go ahead and short. Silver is almost at $34 per oz. Lets check this thread next month and see if you were right.
Backwardation and the fall of the bankers
- Thread starter peilthetraveler
- Start date
Well then...go ahead and short. Silver is almost at $34 per oz. Lets check this thread next month and see if you were right.
Your prediction wasn't about the price of silver, it was that COMEX would go out of business -- please re-read your original post.
But the if the spot market is tight, which is is there's no guarantee people/funds/users can buy the quantity they want/need.
But the futures can guarantee this, a set amount of the metal at a set price (the price the futures were bought).
It's all theoretical anyway re delivery of Silver contracts but one thing is for sure - before the big Silver bull is over at least a few people will have some serious problems with the delivery process.
Debaser and peilthetraveler you are talking your book , like all goldbugs always do. I have been long silver certainly sold way too soon (but again silver is so risky that I am not kicking myself )then shorted it and made money, now I am still short but with a tiny position that I may increase later but probably not before I see a reversal as I think it could rocket to $40 + but on the other hand there could be a huge reversal soon and if I covered I would have no position. I got long gold a few days ago but I think anyone who has a position in those markets has to watch it very closely.
I agree totally.
These last 10 years provided enormous opportunity to get in on the metals train.
Silver 2 years ago reached a low of 8$ an ounce!
Many (like myself) took advantage of those lows and got in, with, should the bull run continue nice profits in the future.
Say you buy silver today, and it goes to 100$ an ounce.
That's a target bullish even for the hard core metal bugs or bulls call it as you like...
You made 200%.
Amazing right but not the return that would make you richer then the sea is deep.
Goldbulls always think of themselves being contrarian...
Today what is contrarian is buying banks.
How contrarian are they really right...
Anyway...
My personal opinion is...
If you have lots of money, get some gold and silver regardless the price.
If you want to get rich, you missed the boat man.
If you want to outperform the market, the metals might provide that opportunity.
All I have to say is this - Silver is for speculation and gold is for hoarding.
Its just too damn bulky. Who in there right mind would own a hundred thousand ounces of the stuff to protect their net worth from debasement, when you could hold 2300 gold bullion coins instead at current prices? 230 tubes or a palet of bars? No choice at all in my opinion.
Whats the spec open interest vs hedgers ratio in SI v GC, I wonder?
Its just too damn bulky. Who in there right mind would own a hundred thousand ounces of the stuff to protect their net worth from debasement, when you could hold 2300 gold bullion coins instead at current prices? 230 tubes or a palet of bars? No choice at all in my opinion.
Whats the spec open interest vs hedgers ratio in SI v GC, I wonder?
I think onvenience is a bad standard to use for an investment decision. Yes it is a pain to store silver's bulk but if you really believe, as I do. that it will significantly outperform gold it pays to make the small investment necessary to store it properly. Particularly if protecting your net worth might be done with fifty thousand ounces or less ... maybe a good deal less.
BTW ... by properly I do not mean in a safe deposit box. If it all hits the fan the only way into the box will be by court order and supervised by someone with the authority to confiscate any of the contraband precious metals you hold. You must make your own judgment as to how and where you store it. A mix of gold and silver might be sensible with the bulk in silver and certainly a mix that includes some small denomination silver coins for small purchase is a must.
I'm not suggesting it will come to anarchy. But I am suggesting if you are going to hold physical it is virtually costless to be prepared for all eventualities.
BTW ... by properly I do not mean in a safe deposit box. If it all hits the fan the only way into the box will be by court order and supervised by someone with the authority to confiscate any of the contraband precious metals you hold. You must make your own judgment as to how and where you store it. A mix of gold and silver might be sensible with the bulk in silver and certainly a mix that includes some small denomination silver coins for small purchase is a must.
I'm not suggesting it will come to anarchy. But I am suggesting if you are going to hold physical it is virtually costless to be prepared for all eventualities.