wont silver go down to 5 again?

[thing]

Back in the 80's silver spiked to 50-80 an ounce (inflation adjusted). But somehow it managed to drop those gains and sell for 5 an ounce 20 years later.

Can anyone think of a reason that won't happon again?

 

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[d2arcing]

thats how i feel, thats why i feel i should sell some and not hoard forever... ahhh

 

[jrf30]

Back in the 80's silver spiked to 50-80 an ounce (inflation adjusted). But somehow it managed to drop those gains and sell for 5 an ounce 20 years later.

Can anyone think of a reason that won't happon again?

It's all based on reasons.

Tell me something else that was at a certain price in the 80's and is cheaper now? OKay, electronics are cheaper. Cell phones cost $800 for a stupid phone and now they are cheaper for a smart phone. Calculators and computers are much cheaper. So some things HAVE gone down. But most have not. A loaf of bread? A gallon of Gas? A bottle of maalox? College tuition? Wages? (the minimum wage at that time was $3.50 per hour!!) rent on an apartment? All higher now than in the 1980s. And NEVER going back down to that level.

DO you expect those to ALSO go down? I do not. But silver was manipulated by the Hunt brothers to $50 per ounce, when it was not WORTH THAT. So it went back down after the manipulation ended. But in general, everything goes higher over time. That's called inflation. Silver went up irrationally, but $7 was probably the right number. Can it go back down from here? Of course. It fluctuates, and it is on a roll right now. BUt to $5? no. It is worth more than that now, just like bread is worth more than 1980s now and wages are and all those other things, including the bottle of Maalox. :-)

The second thing is economics. That plays more into this than into Maalox, but the economics right now favor the price of silver going UP from here. Not forever, and maybe not even to stay above $20 forever. But short term? Going up. The printing of the dollar like we are doing will deflate the value of that dollar. That means on a relative basis, silver and gold will be worth more. It's much more complicated than that, but I must leave for a meeting, so I"Ll stop there. Others can add onthis. BUt my answer is that it CAN go down, and it WILL go down, but I don't think it is at the top yet, so that down turn is not coming yet. And I don't see $5 ever again, as that is too low for the current value of things in general..

Gotta run. ran out of time ...

 

[Argentium]

The reason for the rise in silver in the period around 1980 , was that the Hunt brothers , attempted
to corner the silver market , as the prices soared -people started gathering their silver - coins, tea
services , jewelry , etc. and dumping like crazy - obviously the prices started to nose dive - the
brothers Hunt, were left holding the bag , and lost their proverbial a$$es . The times we find our-
selves in now - cannot be compared to that . The primary reason for this rapid surge - is that the
fiat currency of this country and others, are being printed massively so as to make them more
competitive against the Chinese equivalent . People are waking up to the fact that precious metals
are a better place to be than paper .

 

[jonhls]

Actually from what I remember the Hunt brothers were trying to continue buying silver even with the scrap flooding the market.If I recall the goverment stepped in and stopped them,Was an early example of goverment sticking thier nose in free enterpise,and even though they lost a ton {4 billion seems like familiar number that they had inversted} they recovered from that and are billionaires still last i saw.
And as far as todays manipulated prices I'm curious whats going on with that.As heavily as the silver futures are manipulated I can't figure out how we are running so far without a correction.If Goldman is losing control and has to start covering thier short positions watch out,all $hell will break loose.Normally it seems to hold a tighter range but not this time.Feels a lot different to me....not sure where the sell price is but i believe we are below it still.

 

[jerseyjunkie]

Here is a great article about the Hunt Brothers. COMEX and CFCT changed the rules part way through the game and "killed" the Hunts.

Link

http://www.24hgold.com/english/news...thers&article=2763529238G10020&redirect=False

Very good perspective on the past price of silver.

 

[Hi Ho Silver!]

Anything is possible but back then we didn't have China permitting it's people to buy Silver and Gold!!! That is one BIG draw!!!!!!

 

[JD-GA]

The way this dumb country boy sees it is silver being worth $50 an ounce aint gonna mean squat if a double cheeseburger costs $20+ and that is just as likely to happen. I dont want to get off on a political tangent but with our countrys current uncertainty and unrealistic agenda that $20 cheeseburger is coming sooner than later and i dont mean a grade A lean cheeseburger made by a goddess. I mean the run of the mill Mcdoodles or Wendyloos.

 

[SFBayArea]

The way this dumb country boy sees it is silver being worth $50 an ounce aint gonna mean squat if a double cheeseburger costs $20+ and that is just as likely to happen. I dont want to get off on a political tangent but with our countrys current uncertainty and unrealistic agenda that $20 cheeseburger is coming sooner than later and i dont mean a grade A lean cheeseburger made by a goddess. I mean the run of the mill Mcdoodles or Wendyloos.

If $20 Cheeseburger is coming.. then everyone can pay off their home loans. I would go out and get another loan.. in cases of hyperflation the only advantage is that prior loans don't matter much anymore. So we can eventually pay off our loans with a $100,000 Zimbabwe-like Dollar bill.

 

[fistfulladirt]

The way this dumb country boy sees it is silver being worth $50 an ounce aint gonna mean squat if a double cheeseburger costs $20+ and that is just as likely to happen. I dont want to get off on a political tangent but with our countrys current uncertainty and unrealistic agenda that $20 cheeseburger is coming sooner than later and i dont mean a grade A lean cheeseburger made by a goddess. I mean the run of the mill Mcdoodles or Wendyloos.

If $20 Cheeseburger is coming.. then everyone can pay off their home loans. I would go out and get another loan.. in cases of hyperflation the only advantage is that prior loans don't matter much anymore. So we can eventually pay off our loans with a $100,000 Zimbabwe-like Dollar bill.

Please pass me some of what you're smoking.

 

[placerman]

Silver was manipulated upward by the Hunt brothers in the late 70's and early 80's.

Its been manipulated down since probably 1982.

The banks that have been manipulating the price of silver for the last 30 years or so have been basically forced out of their naked short positions and the result is a parabolic rise in the price of silver.

IMO silver will probably hit an astronomically high price within 2 years and then correct down maybe 20% or 30%, but still end up trading around 40 or 50 an ounce.

I have a friend who manages money for people and he said he had been to a lot of meetings and most of the big players are expecting silver to be around 30 an ounce by the end of the year if not higher. He said a lot of truly wealthy people are buying physical gold and silver and stockpiling it. I'm talking Billions of dollars everyday moving into metals.

A lot of these people are getting completely out of the dollar because they are expecting hyperinflation.

If you don't want to believe there will be a 20 dollar cheeseburger in your future that's your right, but I firmly believe that in 10 years, people working at McDonald's will make 2500 dollars a week and not be able to afford to eat where they work.

 

[JD-GA]

The way this dumb country boy sees it is silver being worth $50 an ounce aint gonna mean squat if a double cheeseburger costs $20+ and that is just as likely to happen. I dont want to get off on a political tangent but with our countrys current uncertainty and unrealistic agenda that $20 cheeseburger is coming sooner than later and i dont mean a grade A lean cheeseburger made by a goddess. I mean the run of the mill Mcdoodles or Wendyloos.

If $20 Cheeseburger is coming.. then everyone can pay off their home loans. I would go out and get another loan.. in cases of hyperflation the only advantage is that prior loans don't matter much anymore. So we can eventually pay off our loans with a $100,000 Zimbabwe-like Dollar bill.

Um hyper-inflation doesnt guarantee you are going to make anymore money or that banks are going to loan you anymore. It just means what you have now isnt going to go as far. You are right your mortgage isnt going to go up since its a fixed loan (if its a fixed loan that is haha) but inflation doesnt mean you get more money to pay it off. Remember because the printing press is running 24/7 doesnt mean someone is gonna hand you the extra bills coming off of it. Folks out of work still needs jobs regardless of my imaginery $20 cheeseburger becoming the reality or not. I own a small car lot with my father. We cant get a guy with a 640 credit score approved with $3000 down on an $8000 car. Yet , all kidding aside, a wendys double cheeseburger meal this year alone beside my carlot has gone from $6.90 to $7.79. That doublecheeseburger meal is inflation. Inflation didnt help my customer get a very unrisky loan approved.

 

[SFBayArea]

The way this dumb country boy sees it is silver being worth $50 an ounce aint gonna mean squat if a double cheeseburger costs $20+ and that is just as likely to happen. I dont want to get off on a political tangent but with our countrys current uncertainty and unrealistic agenda that $20 cheeseburger is coming sooner than later and i dont mean a grade A lean cheeseburger made by a goddess. I mean the run of the mill Mcdoodles or Wendyloos.

If $20 Cheeseburger is coming.. then everyone can pay off their home loans. I would go out and get another loan.. in cases of hyperflation the only advantage is that prior loans don't matter much anymore. So we can eventually pay off our loans with a $100,000 Zimbabwe-like Dollar bill.

Um hyper-inflation doesnt guarantee you are going to make anymore money or that banks are going to loan you anymore. It just means what you have now isnt going to go as far. You are right your mortgage isnt going to go up since its a fixed loan (if its a fixed loan that is haha) but inflation doesnt mean you get more money to pay it off. Remember because the printing press is running 24/7 doesnt mean someone is gonna hand you the extra bills coming off of it. Folks out of work still needs jobs regardless of my imaginery $20 cheeseburger becoming the reality or not. I own a small car lot with my father. We cant get a guy with a 640 credit score approved with $3000 down on an $8000 car. Yet , all kidding aside, a wendys double cheeseburger meal this year alone beside my carlot has gone from $6.90 to $7.79. That doublecheeseburger meal is inflation. Inflation didnt help my customer get a very unrisky loan approved.

True.. yes what I meant was if I had a loan that I was still paying off. Let's say I owe $3000 (in truth I do to those damn medical industry). If hyperinflation goes up and a cheeseburger costs $20 and then the $3000 all of a sudden doesn't seem so much anymore.

 

[AGCoinHunter]

The way this dumb country boy sees it is silver being worth $50 an ounce aint gonna mean squat if a double cheeseburger costs $20+ and that is just as likely to happen. I dont want to get off on a political tangent but with our countrys current uncertainty and unrealistic agenda that $20 cheeseburger is coming sooner than later and i dont mean a grade A lean cheeseburger made by a goddess. I mean the run of the mill Mcdoodles or Wendyloos.

If $20 Cheeseburger is coming.. then everyone can pay off their home loans. I would go out and get another loan.. in cases of hyperflation the only advantage is that prior loans don't matter much anymore. So we can eventually pay off our loans with a $100,000 Zimbabwe-like Dollar bill.

Um hyper-inflation doesnt guarantee you are going to make anymore money or that banks are going to loan you anymore. It just means what you have now isnt going to go as far. You are right your mortgage isnt going to go up since its a fixed loan (if its a fixed loan that is haha) but inflation doesnt mean you get more money to pay it off. Remember because the printing press is running 24/7 doesnt mean someone is gonna hand you the extra bills coming off of it. Folks out of work still needs jobs regardless of my imaginery $20 cheeseburger becoming the reality or not. I own a small car lot with my father. We cant get a guy with a 640 credit score approved with $3000 down on an $8000 car. Yet , all kidding aside, a wendys double cheeseburger meal this year alone beside my carlot has gone from $6.90 to $7.79. That doublecheeseburger meal is inflation. Inflation didnt help my customer get a very unrisky loan approved.

True.. yes what I meant was if I had a loan that I was still paying off. Let's say I owe $3000 (in truth I do to those damn medical industry). If hyperinflation goes up and a cheeseburger costs $20 and then the $3000 all of a sudden doesn't seem so much anymore.

Trust me, the banks will find some way to enact legislation which will attach your loan to the rate of inflation. Paying off your debt overnight due to hyperinflation isnt going to happen.

 

[placerman]

The way this dumb country boy sees it is silver being worth $50 an ounce aint gonna mean squat if a double cheeseburger costs $20+ and that is just as likely to happen. I dont want to get off on a political tangent but with our countrys current uncertainty and unrealistic agenda that $20 cheeseburger is coming sooner than later and i dont mean a grade A lean cheeseburger made by a goddess. I mean the run of the mill Mcdoodles or Wendyloos.

If $20 Cheeseburger is coming.. then everyone can pay off their home loans. I would go out and get another loan.. in cases of hyperflation the only advantage is that prior loans don't matter much anymore. So we can eventually pay off our loans with a $100,000 Zimbabwe-like Dollar bill.

Um hyper-inflation doesnt guarantee you are going to make anymore money or that banks are going to loan you anymore. It just means what you have now isnt going to go as far. You are right your mortgage isnt going to go up since its a fixed loan (if its a fixed loan that is haha) but inflation doesnt mean you get more money to pay it off. Remember because the printing press is running 24/7 doesnt mean someone is gonna hand you the extra bills coming off of it. Folks out of work still needs jobs regardless of my imaginery $20 cheeseburger becoming the reality or not. I own a small car lot with my father. We cant get a guy with a 640 credit score approved with $3000 down on an $8000 car. Yet , all kidding aside, a wendys double cheeseburger meal this year alone beside my carlot has gone from $6.90 to $7.79. That doublecheeseburger meal is inflation. Inflation didnt help my customer get a very unrisky loan approved.

True.. yes what I meant was if I had a loan that I was still paying off. Let's say I owe $3000 (in truth I do to those damn medical industry). If hyperinflation goes up and a cheeseburger costs $20 and then the $3000 all of a sudden doesn't seem so much anymore.

Trust me, the banks will find some way to enact legislation which will attach your loan to the rate of inflation. Paying off your debt overnight due to hyperinflation isnt going to happen.

Read up on the history of the Weimar Republic.

There are several documented instances of people buying large estates and turning around and paying off those loans with the proceeds of the sale of a single potato.

 

[jim4silver]

Nobody here knows for sure where gold/silver prices will go.

But I feel that using the past as a guide to future prices is not going to give accurate predictions. The dollar issue and gov debt issue is unlike it has been in the history of the country. Where gold/silver go based on the monetary issues (not industrial demand) will be what makes the prices really skyrocket.

While gold/silver may correct (I am hoping soon), I believe the prices of both of these will end up at high figures that will surprise even the most ardent gold/silver bugs by the time the bull run ends/bubble finally pops.

The big money players really control the market, both paper and physical. Now that they have started getting involved in larger numbers, there is much more room for the prices to go up. When joe public starts buying gold/silver, it will be in the final stages of the bull run (like in the early 80s when people were lining up outside coin stores to buy gold).

Jim