Boot Posted July 1, 2009 Report Share Posted July 1, 2009 Silver under my Skin? It dawned on me lately that I am in danger of becoming a silverbug. I love collecting silver coins, the older the better. Bullion of interesting design catches my eye. I have to fight the urge to buy large amounts. I fear my shipments will give the UPS deliverer a hernia. As a silver bug, I could also collect side-by-side, 12- gauge shotguns with silver accents. That would fend off unwelcome nocturnal visitors of both two and four-legged variety. No silver bullets for me though, just good ole buckshot. I’ll take my chances with vampires. Silver mining companies are attractive when you look through silver rimmed specs. My rims are cheap, but I wish they were silver. Silvermining operations have a tendency to be grand in scale and can be mined for many years. They are quite profitable when silver prices remain high as they are in production. Often the mines can be very efficient especially when co-located metals are sold to lower the cost of production. Gold explorers seem more hit or miss to me. Large, efficient silver mining operations have the potential to be a household name. I followed CDE for the longest time waiting for my good fortune. Naturally I cashed out with a small loss just before it went up several dollars. Yes, the common mans gold, and a common traders mistake. I wish I knew more about the lifecycle of a mine then. I’ve been at this a while, but I still don’t get the silver market. I like to think that I read those who do. Are the Silver Bears collectively correct, or are we all deluded? Is it deluded or diluted? Regardless, manipulation certainly has made the news this month. Silver always catches my eye in the news. I’ve been reading everywhere about Silver manipulation, ETFs distorting the silver market, silver and the COMEX. Silverbullets. It’s like a spaghetti western where the drifters are waging war with the cattle barons. Back then it was free-range cattle, now its manipulated markets. The barons are now the large banks and nefarious oligarchs. I just read about Mexico and its push for a silver standard, but their central bank most likely squelched it in the house. Rumor has it the banks’ reserve of silver was too low, so they wouldn’t have profited from the move. This will be an interesting story to follow if the banks increase their inventory before the ink is dry on new legislation. Why weight into silver with all the apparent manipulation? Here's a few reasons off the top. A silver bug doesn’t have to hold their breath to see if India is buying. A silver bug doesn’t have to hope congress for the Nth time doesn’t approve the release of gold inventories. Silver has enough industrial applications to be in demand regardless of jewelry consumption or coin uses. With medical, clothing and even solar panels using silver, demand must be on the rise. These applications are consuming silver, not just stockpiling it. So if Adam Smith was correct, in a laissez-faire market, supply and demand rules. Demand is on the rise, and cheap silver is getting tougher to find if one believes peak silver articles. Is it a laissez-faire market? How much manipulation is possible? Having lived through the Huntian 70’s I can confidently say, quite a bit. Can one yield profit going long on silver mining stocks to leverage a bull run? Or for such a volatile metal, perhaps the day-traders could find a niche. How often can the market be diluted every time there is a run up in the spot price? Who is stock-piling silver that would dilute the market? Do Silver ETFs actually have the bullion, or are they paper giants? These are common questions for a common man who loves common man’s gold. I do love the lunar metal, and common is ok. At a point in ones life, one should be comfortable with the skin you are in. I’m considering trying colloidal silver. It supposedly has positive health effects. At least I will get honest feedback from friends and strangers alike. Every prolonged glance upon my blue countenance will tell me if I got into silver a little too much. Boot 30 June 09 Link to comment Share on other sites More sharing options...
romans holiday Posted July 1, 2009 Report Share Posted July 1, 2009 Dude, you really are attached to silver. If you love the stuff buy as much as you can. But if you are buying for investment, an alternative currency or wealth preservation, I would say be a little cautious. For me, whether markets are manipulated or laissez faire is besides the point. I find both ideas dubious. Of more significance is how people behave and the herdish behaviour this leads to in the markets. Being the "ship of fools" that we are, I think it is likely that we will continue to see inflation scares followed on by deflation scares ad nauseum. Against this sort of background the price of your silver will soar on inflation and crash on deflation. Gold will be a lot more stable. Why not consider trading to gold at opportune moments... then trading back again to an even bigger stash of silver. For myself, I have both and consider silver the fast moving Queen while gold remains the central King piece. welcome to the site btw. Link to comment Share on other sites More sharing options...
Boot Posted July 1, 2009 Author Report Share Posted July 1, 2009 Dude, you really are attached to silver. If you love the stuff buy as much as you can. But if you are buying for investment, an alternative currency or wealth preservation, I would say be a little cautious. For me, whether markets are manipulated or laissez faire is besides the point. I find both ideas dubious. Of more significance is how people behave and the herdish behaviour this leads to in the markets. Being the "ship of fools" that we are, I think it is likely that we will continue to see inflation scares followed on by deflation scares ad nauseum. Against this sort of background the price of your silver will soar on inflation and crash on deflation. Gold will be a lot more stable. Why not consider trading to gold at opportune moments... then trading back again to an even bigger stash of silver. For myself, I have both and consider silver the fast moving Queen while gold remains the central King piece. welcome to the site btw. Thanks for the welcome. Your advice is noted. Some of that was in jest. I do like silver, but at what appears to me as good entry points. I have more gold miners that silver currently and multi mineral producers. I am slowly weighing into bullion and coins as I get a feel for it. Link to comment Share on other sites More sharing options...
wren Posted July 1, 2009 Report Share Posted July 1, 2009 I'm quite a silver bug. Aesthetically sometimes I like silver coins better than gold ones. Most of my silver is at GoldMoney but I have a small collection of coins including one one-kilo Koala. I'm just a small investor but I own more than my own bodyweight in silver. Is that too much? If the gold/silver ratio drops below 50 or so I might begin to swap some silver for gold. Link to comment Share on other sites More sharing options...
Boot Posted July 7, 2009 Author Report Share Posted July 7, 2009 I'm quite a silver bug. Aesthetically sometimes I like silver coins better than gold ones. Most of my silver is at GoldMoney but I have a small collection of coins including one one-kilo Koala. I'm just a small investor but I own more than my own bodyweight in silver. Is that too much? If the gold/silver ratio drops below 50 or so I might begin to swap some silver for gold. I think you have done well. I'm adding silver mostly now, some gold too. Price dip in the summer makes my mouth water... Link to comment Share on other sites More sharing options...
id5 Posted July 12, 2009 Report Share Posted July 12, 2009 ... but I own more than my own bodyweight in silver. Is that too much? ... Depends just how fat you are Link to comment Share on other sites More sharing options...
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