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  #1  
Old 12-02-2005, 02:45 PM
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$$$Silver$$

Here's a little something you might watch for. Both gold and the dollar have been strong this year. This has never been seen before as you'd expect an inverse relationship between the two. In terms of Yen or Euros gold has been explosive. Buying from India and the Mideast where they often wear the family fortune in jewelry has been strong, but a less know reason I think is that an ETF now exists (GLD, and ishares has a smaller one also) that allows investors to easily own gold in an ordinary brokerage account. Mining shares typically outperform, and even lead the moves in bullion, but these ETF trusts require the fund to go into the market and buy bullion to back up the shares - each share being worth 1/10th oz. of .999 fine gold. The effect has been to somewhat artificially support the price because of the ease of ownership.
The opportunity is that they are talking about the same thing in silver. The supply situation in silver is tight and by having an ETF, may create a tremendous spike in prices, as the public can avoid the storage and insurance costs typically associated with owning the physical - this must be why it hasn't happened yet.
Watch for it - it could prompt a big move. On the other hand if it comes out that there won't be an ETF because of a fear that it might take to much off the table - a big break in the actuals and futures will occur. If that does occur - buy the break, or the NEM shares.
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  #2  
Old 12-02-2005, 08:44 PM
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My money is on the break for silver, and I don't think it would be a buying opportunity. If it breaks below 7.39 it'll continue to fall big time.
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  #3  
Old 12-02-2005, 08:57 PM
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I've been buying silver like crazy....Go to this thread and see my second and 17th post (see how much I was getting silver for in september)

Collectors/What do you collect?
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  #4  
Old 12-02-2005, 09:19 PM
John Holmes III
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Gold, silver future trading prices go down on poor demand
Mumbai | November 29, 2005 7:31:12 PM IST


Gold and silver prices today fell in the future trading on sustained poor speculative support from local bear operators, in view of weak global advice, trader-members of Multi-Commodity Exchange (MCX) here said.
Silver was quoted low at USD 8.27/8.30 per troy ounce, while gold was quoted at USD 496.80/497.60 per troy ounce in the global markets, traders added
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Old 12-02-2005, 09:26 PM
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Quote:
Originally Posted by John Holmes III
Gold, silver future trading prices go down on poor demand
Mumbai | November 29, 2005 7:31:12 PM IST


Gold and silver prices today fell in the future trading on sustained poor speculative support from local bear operators, in view of weak global advice, trader-members of Multi-Commodity Exchange (MCX) here said.
Silver was quoted low at USD 8.27/8.30 per troy ounce, while gold was quoted at USD 496.80/497.60 per troy ounce in the global markets, traders added
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Silver was also at 7 bucks in September, that's a 18% increase in 3 months.

There is alot of scandal behind silver.......most people that buy silver don't actually hold it but rather get a certificate of ownership. A lot of times there is no actual silver behind that certificate because nobody is looking to cash in just yet. What if everybody went in to cash in these certificates today ?? Think about the profit that these banks are making by just selling paper with your name on it.

Most people that buy silver in bulk also pay for storage fees.....I don't know why they would do such a thing since most of the silver does not exist. It's only on paper.
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  #6  
Old 12-02-2005, 09:51 PM
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The spot prices for gold and silver have dropped dramatically the last two days. Does anybody have a clue?
1: some gov't dumping their stocks (but what would they hold instead)
2: plunge protection team trying to stabilize US economy (not likely, as the economy is booming)
3: a glut of precious metals on the market (they are making so much of it you know)
4my speculation) Gold and silver are known as hedges against inflation. If the FED is correct, and we are headed for an inflationary period, someone is trying to drive the prices down so they can stock up now.

Silver prices tend to move in tandem with gold when investors are looking for a haven from equities, especially during bear markets such as this one or in times of high inflation. But the similarities end there. In the past five years, silver has fallen from as much as $7 an ounce to under $5, while gold has risen over the same time period from $300 to more than $360.

This supply-side deficit is what makes silver so peculiar. In the silver market, supply is decreasing, demand is increasing, and the long-term price is falling. No other commodity defies the laws of supply and demand like silver. David Morgan, a silver analyst with Silver-investor.com, blames the phenomenon on the huge short positions in the silver market. He says there is more silver on paper than actually exists in the world. "It is a pathetically small market and is dwindling all the time" he says. He adds that if big silver investors like Warren Buffett, George Soros, and Bill Gates decided to double their positions, there would not be enough silver to fill the order—and the market would collapse. He says the threat is compounded as investors start to lose faith in the U.S. dollar and look for hard assets.

Most commodity positions, however, never result in the buyer taking delivery, and the jury is still out on exactly how much tangible silver actually exists. Rough estimates have pegged the world supply at between 300 million and a billion ounces. Since silver is a consumable item, that number is expected to be falling.

Still, if the facts are right, a spike in demand could lead to mass default. David Morgan says regulators are not taking the threat seriously enough. He suggests regulators step up to the plate and place limits on purchases for buyers not using the silver for manufacturing. So there's plenty to fear in the silver market, and it's more than just werewolves
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  #7  
Old 12-03-2005, 12:06 AM
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Quote:
Originally Posted by John Holmes III
The spot prices for gold and silver have dropped dramatically the last two days. Does anybody have a clue?
See the first post... what break?? ... no big
Quote:
Originally Posted by John Holmes III
Silver prices tend to move in tandem with gold when investors are looking for a haven from equities, especially during bear markets such as this one or in times of high inflation. But the similarities end there. In the past five years, silver has fallen from as much as $7 an ounce to under $5, while gold has risen over the same time period from $300 to more than $360.
John it's hard to respond to your post because the information seems so dated - below are the current charts for silver and gold. If the little blip last week is what you'd call dramatic I'd stay away from this one - Gold can open down $20-25 anytime now and silver broke 50 cents in three days last month. Yes there is a potential for a squeeze in silver as known stocks (operative word - KNOWN) are declining and at less than 500 million oz. Silver Users Assoc. are fighting an ETF in SLV because it could easily empty the vaults. The collapse you refer to would be the actual market for delivery, but not the price. The reality is that there are significant hoards of silver that don't show up in the stats. and at high prices will come to market.


For Kamil - run, don't walk away from these unregulated dealers that issue receipts. Much as they'd like to be real they're not, and you will lose everything with them. Scams in the metals are the norm, but there are exchange traded contracts as small as 1,000oz. If that's to much for you just buy coin as mattress money or stick to the GLD trust
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Last edited by crash9; 12-03-2005 at 01:18 AM.
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  #8  
Old 12-03-2005, 12:19 AM
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Quote:
Originally Posted by crash9
For Kamil - run, don't walk away from these unregulated dealers that issue receipts. Much as they'd like to be real they're not, and you will lose everything with them. Scams in the metals are the norm, but there are exchange traded contracts as small as 1,000oz. If that's to much for you just buy coin as mattress money or stick to the GLD trust
I don't know what you are talking about I never said I was buying the certificates.

I buy only physical silver. 100 oz bricks and bullion coin I am definitely with you on buying a whole lot of silver.
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Old 12-03-2005, 12:28 AM
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Quote:
Originally Posted by kamil
I don't know what you are talking about I never said I was buying the certificates.

I buy only physical silver. 100 oz bricks and bullion coin I am definitely with you on buying a whole lot of silver.
Sorry - I just read your post a little closer - So you're part of that hoard - what price would you be a seller?
My step daughter graduated from Rutgers - she's in Baghdad running a hotel now - KBR
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  #10  
Old 12-03-2005, 12:37 AM
John Holmes III
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Quote:
Originally Posted by kamil
I don't know what you are talking about I never said I was buying the certificates.

I buy only physical silver. 100 oz bricks and bullion coin I am definitely with you on buying a whole lot of silver.
How 'bout some land in sunny Florida?
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  #11  
Old 12-03-2005, 12:48 AM
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Quote:
Originally Posted by crash9
Sorry - I just read your post a little closer - So you're part of that hoard - what price would you be a seller?
My step daughter graduated from Rutgers - she's in Baghdad running a hotel now - KBR

I will sell when it goes to 20. I don't know how long that will take but I have no need to dump it yet.
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  #12  
Old 12-03-2005, 12:56 AM
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Twenty an ounce? Hahahahahahahahahahahahahahahahaha.
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  #13  
Old 12-03-2005, 01:10 AM
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Quote:
Originally Posted by John Holmes III
Twenty an ounce? Hahahahahahahahahahahahahahahahaha.
This is a squeeze play
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  #14  
Old 12-03-2005, 01:17 AM
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Hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha.

Yea. Right.
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  #15  
Old 12-03-2005, 01:26 AM
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Anything is possible.
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