Why silver prices are not steadily rising...

[Phillip_in_NM]

Very interesting reading - courtesy of coinflation.com.

Sounds like this Silver Users Association is doing their dead level best to stymie any marked growth in silver prices. The author makes a very good point that such activity should be illegal and questions why it is not. Do we need to contact our legislators to deal with this issue?

I'd love to read your comments after you read the article:

http://www.financialsense.com/fsu/editorials/steer/2007/1018.html

 

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[diggummup]

Very interesting stuff! I think what they are/have been doing for years is criminal just like alot of things all forms of "big business" gets away with. I don't have time to read the S.U.A.'s objectives from their website nor all of essays by Ted Butler and Charlie Savoie, but I look forward to it and will in due time. It seems we can put the S.U.A. in the same catagory as Debeers and OPEC. Good ole price fixing and manipulation! I often wondered why silver is still so low in price (relatively speaking) as compared to say gold prices. I know we have much more silver to be mined than gold but......Did you know that gold was selling for around $35 an ounce in 1970? At that same time silver was selling for about $1.75 an ounce. Compare that to today with gold prices about 21-22 times higher than in 1970, or about $750.00 an ounce and silver selling for only about 8 times as much as it did in 1970 or about $13.50 an ounce. Seems silver is very cheap and hasn't kept up with inflation rates and now we know why. Regardless of all of this I still believe the price of silver will skyrocket sometime in the near future (before I die), I recommend saving all you can for the future, just make sure to sell before the market gets "flooded" and the price drops out, like it did when those two brothers from Texas tried to corner the silver market back in the late 70's.

 

[TxTim]

Good and interesting article.
One thing I have learned is that silver is and probably won't be short in supply in the near future. Most of the mined stuff is a byproduct of lead and gold mining and only costs about $2.50 per troy oz. to mine and refine these days. It seems like the only thing that ever drives the price is the weakness or strength of the US dollar to other currencies. Weaker dollar = higher silver prices.
There would have to be one heck of a demand to ever influence the market on that type of speculation and the argument that the Chinese are consuming a lot more of it these days doesn't seem to carry a lot of weight. Kodak and other film manufacturers were huge consumers of silver before the digital age.
The only thing that really matters is that we can still buy silver from the bank at up to 1/10 of it's true value at the moment!

 

[Phillip_in_NM]

Interesting ideas, guys.

Tim, one of the most intriguing things I've learned recently about silver concerns its antibacterial properties. With hospitals and schools having major problems with 'super' bacteria, I wonder whether we won't soon be seeing an increased use of silver as an antibacterial coating.

Don't know if it's realistic, but if it becomes a reality, it'll take more than the SUA to keep the price of silver down.

 

[TxTim]

This doesn't help matters - China hoards silver - no shortage or industrial demand as all the speculators say...:


Silver May Lag Behind Gold on Higher China Supply, Heraeus Says

By Danielle Rossingh

Oct. 26 (Bloomberg) -- Silver exports from China may rise, causing its price to lag behind gold, because of changes in the country's tax rules, metals refiner Heraeus Holding GmbH said.

``Silver won't exceed last year's highs'' because of ``problems at the supply side,'' Wolfgang Wrzesniok-Rossbach, head of marketing and sales at the Hanau, Germany-based company, said in an interview today.

A change in export regulations earlier this year cut the supply of silver coming from China, Wrzesniok-Rossbach said. Under the rules, refiners are no longer allowed to recover most of the value-added tax paid on domestic purchases, and consequently they have hoarded more silver, he said. Some of those inventories may now be sold because prices have gained 9.8 percent this year, he added.

Traders at Heraeus, the world's second-largest refiner of platinum and palladium, estimate there may be between 500 and 1,000 metric tons hoarded in China, Wrzesniok-Rossbach said.

Silver for immediate delivery rose 27 cents, or 1.9 percent, to $14.16 an ounce as of 3:55 p.m. in London. It climbed to $15.22 last year, the highest in 21 years, as investment demand outpaced mine supply.

Gold climbed today to the highest price in 27 years, partly as a weakening dollar and record oil prices spurred demand for bullion as a hedge. The metal has surged 22 percent this year, outpacing silver.

Silver trading at $14-14.50 ``may open the floodgates, and lead to a surge in exports from China,'' Wrzesniok-Rossbach said. That would ``damp prices.''

Global mine production last year rose 0.1 percent to 20,095 tons, according to London-based research group GFMS Ltd. Global silver demand slipped 0.9 percent to 26,142 tons.

To contact the reporters on this story: Danielle Rossingh in London at [email protected]

 

[Phillip_in_NM]

Wow. Would it ever suck if China started dumping all that silver and driving the price down.

Wonder how it would affect CRHing?

 

[silverfinder37]

I still believe that 20.00 an ounce is in our near future. Some are predicting 30-50.00 and then the Big adjustment
best Regards, Ray

 

[fiatboy]

The price of silver is finicky and spastic, but if you're in for the long haul, you'll do well.

 

[thurmownator]

The only thing that really matters is that we can still buy silver from the bank at up to 1/10 of it's true value at the moment!

You got that right !

 

[coincollector101]

silver jumped 30 cents from Friday to today

 

[scotto]

Wow. Would it ever suck if China started dumping all that silver and driving the price down.

Wonder how it would affect CRHing?

I'll CRH for silver whether it is 14 or 5 bucks an ounce. It's a treasure hunt!

 

[Phillip_in_NM]

I'm with Scotto... the fun is in the hunt!!!

 

[ivan salis]

because "powerful", poeple don't want it to

 

[GMan00001]

I'm with Scotto... the fun is in the hunt!!!

ditto.