What's with silver going through the roof.


WyomingEMT
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The increase in demand of silver has not much to do with the American economy...

Silver has grown in popularity as it is used in electronic equipment batteries and as an anti-bacterial agent in medical applications such as wound dressings, surgical applications, homeopathic medicine, etc. All of these industries are rising and will continue to rise. Silver is also used in solar energy and that may be a rising industry as well. So, there's a high likelihood that silver will continue to rise in demand in the future. Silver used in batteries and medicine are not recyclable because of the small amounts present in each individual product, so these industries are taking silver from the earth or from existing products such as jewelry or silverware making those products highly coveted.

So, as you can see, regardless of the state of the economy, you can always find something to invest in. Unless of course economies get wiped out altogether.

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The economy is on the mend with an almost shut down of the government?

Strictly speaking, this is a non sequitur. The government is not the end all be all of economy. So, a government shutdown is just like Home Depot shutting down or Walmart shutting down... Lots of people will be out of work, you can't buy a shovel from Home Depot or a spatula from Walmart, but economy will still go on... Because, you can always buy a spatula somewhere else. The current laws remain in place even with a shutdown, so for a business owner, it's business as usual...

Edited by anatess
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Interesting because many people who get benefits from food stamps and such would not have gotten their benefits. Much of that for the states is subsidized by the federal government. I work in that business and we were geared up for the phone calls. No benefits, no money going into businesses. That for sure has to do with economy. The federal government reaches out to more than what a lot of people realize.

Edited by pam
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Interesting because many people who get benefits from food stamps and such would not have gotten their benefits. Much of that for the states is subsidized by the federal government. I work in that business and we were geared up for the phone calls. No benefits, no money going into businesses. That for sure has to do with economy. The federal government reaches out to more than what a lot of people realize.

Pam. That's why I used the intro "strictly speaking". Because, when you say "economy is on the mend" it is macro.

Everything revolves around supply and demand in a capitalist economy, so that, when people have less money, demand for big money items (e.g. steaks) go down, an overstock occurs, therefore prices go down - which then causes those that have money to stock up therefore, using up overstock, balancing itself up again. Demand for small money items (e.g. ramen) rises, causing a shortage, thereby requiring more production, which means hiring more people, which causes money to circulate... and on and on the cycle goes. Keynesian economics (government infusion of money into the economy) doesn't create new wealth. It only redistributes existing wealth hoping to spike production somewhere down the line. It is not necessary for the government to be there for the cycle to happen.

The reality of this is that: For the steak producers, economy is going down the drain. For the ramen producers, economy is on the rise.

So that, shutting down the government simply means, the food stampers are not going to have recycled money. Not that money disappeared altogether. It is still there, in someone's pocket.

Case in point: ever wonder how Apple is making record sales on the iPhones all throughout the housing crisis?

As far as the economy is concerned, shutting down the government is a relief - because a government can kill economy by piling on more regulation that increases the cost of production without adding intrinsic value to a product.

Clarification: I'm not against government regulation. I'm just presenting causation.

Edited by anatess
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Its not so much that gold and silver are rising, it is that the real value of the dollar is dropping. You are seeing the same thing in other commodities as well (eg, oil). I know our government assures us that that there is no appreciable inflation, but the marketplace says differently.

Precious metals tend to hold their buying power over time (with flucuations of course), but since all they do is hold their own, they make lousy investments. (tho they can help you sleep well in tough economic times).

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Silver is going up for two reasons.

First, it is now being used more and more in technology, so the demand for silver is up. Second, with the economic uncertain, prices for certain precious items are going up, such as oil, gold and silver. These tend to go in the direction opposite the US dollar and economy, because they are the things people instinctively rely on during hard times to protect their investments.

For those wise enough to purchase silver just a few years ago when it was $5 an ounce, they now have an 8 fold increase in value. Personally, I believe silver will go up to at least $60/ounce. So I think there's still some good value there. Gold will probably go up to $2000/ounce.

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Silver is going up because the dollar is being devalued. Silver will continue to go up as the United States empire is coming down. The Treasury spends money that it has been lent. Currently not many countries are buying our bonds so the Federal Reserve is buying Treasury bonds. This equates to money printing. More dollars chasing the same amount of goods. This is where inflation comes from. If the Federal Reserve stop QE 2 and raised interest rates than the interest payments on our debt would be nearing dangerous levels.

If you don't own any precious metals I suggest you begin to start buying now. The US dollar will be pretty much worthless in the future. Not 10-20 years from now but more like within a few years.

I think many Mormons think that the United States will stay strong economically as wickedness continues. I don't know they don't recognize that the US government debt is out of control and we are headed into the greatest depression the world has ever seen.

Edited by AGStacker
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I don't want to poo-poo anyone's buy advice, but I just sold my tiny little collection of silver for 243% what I originally paid. It was supposed to be an inflation hedge, but there has been only about 1.24% total inflation from my date of purchase.

I'm not sure why the price went as high as it is. If you figure it'll keep going up, by all means, buy some.

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Wyoming - I assure you the economy is going to be entering a depression if it isn't in one already. The main stream media is a tool of the devil and is used to control the population. A silver quarter will buy the same amount if not more gas than it used to. A silver quarter is almost worth $8! Silver and gold will definitely protect you from inflation or currency devaluation. When gold was $35 an ounce before its bull run in the 70's, you could buy a mustang for around $3,500, keep $3,500 in cash or save 100 gold coins valued at $3,500. Today those gold coins would be worth close to $150,000. Silver and gold are real money where "moth and dust" do not corrupt!

Edited by AGStacker
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Wyoming - I assure you the economy is going to be entering a depression if it isn't in one already.

I always have to giggle when I hear stuff like that. I don't think you know what a depression from a hole in the ground. My dad's stories of living through the depression are so far removed from the reality for America today, it might have well been another world.

Anyway, let's have some firm dates and specific predictions so we can figure out if you're full of it or not. Gas will be $6/gal by what date? What price will silver be by July 4? Unemployment will hit 20% by the govt measure by when?

Are you up to the challenge?

LM

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Good advice for both of us.

I see you are unwilling to make a specific prediction. So, it's just general vague doomsaying then? That's ok, but I'll keep contributing to my work's 401k plan if that's fine with you. Because from where I'm standing, the future looks far rosier than it does to you.

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Don't be so sure you know everything ;) . Start here and we'll talk later.

Peter Schiff pretty much is one of the best economist we currently have. He called the housing mess 100% even before 2006 and people laughed at him and ridiculed him. Sounds like that "big and spacious building" mentality to me. You can also YouTube "Peter Schiff Was Right". He warned people of the dangers of low interest rates by the Federal Reserve. Easy money came to the banks and they were able to lend money carelessly. Banks use to require 20% down and verified income. This gave the banks a cushion when and if people stopped paying their mortgage. But this time around was different. Banks lent to ANYONE no matter the circumstances. And these people were able to buy multiple homes. Of course this isn't the actual cause of the coming depression. I am just trying to explain a little bit of Peter and his stance.

So why are we going to go through a depression? I don't know where to start. Well, essentially the Church warns against the dangers of debt and the US government has unsustainable amounts of it. See, the Treasury sells Treasury bonds to fund government expenditures. Currently no foreigners are really buying our bonds so the Federal Reserve is buying Treasury bonds with printed money. When they print dollars the value of all our dollars go down. This is inflation. You have more dollars chasing the same amount of goods. Think of a Michael Jordan rookie card. They are valuable because they are rare. Well what if there were 6 billion of them? Not so valuable now. The Federal Reserve, to save the dollar, needs to raise interest rates drastically but this would cripple our economy because the interest on our debt would be overwhelming! So the other option is to print money like there is no tomorrow and the result in the end is hyperinflation. That is why gold is at record highs and silver is approaching its all time high. Not to mention commodities are up across the board. Inflation is rampant in China because we are devaluing our dollar. I promise you will see commodities continue to rise and within a few years the dollar will be a worthless currency. Read up on the Weimar Republic. Also read about QE 2. Members of the Church don't understand that the devil's plan is very deceptive. We, as Americans, think we are invincible. This is especially true among my age group, 25. God doesn't want to destroy America yet so he will greatly humble it first. This is the cycle discussed in the Book of Mormon although this time is so much different because many countries back their dollar with our dollar. When our dollar loses values mostly all other dollars lose value.

Why was our dollar the reserve currency? Well, for one it was backed by gold and internationally convertible to gold until 1971. Then gold ran from $35 to close to $900. Then Paul Volcker from the Fed raised interest rates very high in 1980. Depending on how old you are you may remember this. This essentially save the dollar because it limited the number of total dollars in circulation. Well, they were able to maintain a relatively strong dollar until the 90's when low interest rates by Alan Greenspan were present. Since 1999 gold and silver have been on a bull run because as more dollars enter into the economy their power to purchase weakens. We are at a point where are debt is not sustainable.

Bush spent more than all presidents combined and Obama is on course to do the same. This will be the end of the American empire.

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Good advice for both of us.

I see you are unwilling to make a specific prediction. So, it's just general vague doomsaying then? That's ok, but I'll keep contributing to my work's 401k plan if that's fine with you. Because from where I'm standing, the future looks far rosier than it does to you.

I didn't say your 401k didn't look nice but the dollars that will be held by all Americans we be heavily devalued in the coming few years unless they hold gold, silver or foreign currency.

Also, it is impossible for me to say exactly when I think the dollar will go down x amount. Although you should look at a chart and see where it is headed.

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Consider the following quotes.

Joseph Smith Junior

"There will be two great political parties in this country. One will be called the Republican, and the other the Democrat party. These two parties will go to war and out of these two parties will spring another party which will be the Independent American Party. The United States will spend her strength and means warring in foreign lands until other nations will say, “Let’s divide up the lands of the United States,” then the people of the U.S. will unite and swear by the blood of their fore-fathers, that the land shall not be divided. Then the country will go to war, and they will fight until one half of the U.S. army will give up, and the rest will continue to struggle. They will keep on until they are very ragged and discouraged, and almost ready to give up—when the boys from the mountains will rush forth in time to save the American Army from defeat and ruin. And they will say, “Brethren, we are glad you have come; give us men, henceforth, who can talk with God.” Then you will have friends, but you will save the country when its liberty hangs by a hair, as it were." - Autobiography of Mosiah Hancock

Also.

As recorded by A. Milton Musser:

"...Prophet Joseph said that the next great (U.S. civil) war after the war of the rebellion (the Civil War of the 1860's between the North and the South) would commence in a little town now called Chicago but at that time it would have grown to be a very large city. And another brother told me that the Prophet said that the cause of the next great trouble of the United States would be the depreciation of the currency of the United States. I believe I have given you all the facts in as short and concise manner as possible."

This pretty much sums it up. US government spending way to much money. Wars we shouldn't be in and debt that we are drowning in. Americans don't have respect and dignity. Imagine waking up and the banks are closed or your money has been devalued 30-50%.

Also, I think it is safe to say the "war" between the Democrats and Republicans is a, for the most part, nonviolent war. Essentially what we are experiencing now with the blaming either the Democrats or the Republicans.

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I tend agree with Agstacker on most of what he said here. I've seen Peter Schiff on CNBC many times and he makes more sense to me that many of the talking heads. Peter is not necessarily bearish on US stocks, mainly just the US paper dollar....which the Fed continues to devalue and is backed by nothing of substance.

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My dad's stories of living through the depression are so far removed from the reality for America today, it might have well been another world.

LM

This is why it is going to be so bad. We have been so proud and arrogant. We have raised generations of spoiled, disrespectful, hands out, "I'm never wrong", "I deserve everything" and so many more terrible things. Your dad's stories were when less people actually existed on the Earth therefore areas were far less concentrated and people actually had respect for others.

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  • 1 year later...

One newsletter that I read about commodities stated that silver is being manipulated by the big investment banks. Several of them took huge short positions and now are trying to sell off those shorts without causing a rise in price which would hurt them with the remaining shorts that they haven’t sold. It means that they would need to purchase silver to cover their short contracts; but if they can manipulate the price up and down slightly they can cover the shorts without causing a spike in prices. I don’t know how long they have to go to liquidate all of their shorts.

Silver is being consumed for industrial purposes faster then it can be mined, therefore the shortage is getting more critical. When both the shortage becomes critical and the banks have liquidated their short positions, and the Fed keeps printing, then the silver price will skyrocket.

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