I've been taking the last month off from reading precious metal news. Everything had been at a standstill as pm's were experiencing the summer doldrums. So I feel out of the loop and trying to catch up. The weekend news of continued problems in Europe, unresolved credit mess, and just read from one of the kitco contributors that the situation could bust open very soon!!! Imminent! There are riots in Greece, Syria and could start happening in Italy. These things have a way of spreading like a virus. The news is not good in the U.S. with the debt limit situation. Although, I'm sure they will find a way to temporarily forestall the damage and kick the can down the road until it all explodes.
So I made my way to King World News to catch up and I see a great deal of people, James Turk most notably, saying that silver could take off mid-summer and go on a run. Same as Rick Rule. And the other news that China setting up a Comex of their own could take the wind out of JPMorgan shorts. I don't quite understand all of the shorting. But I do get that it may be good news for us.
Here's my question. If things explode in Europe and have a domino effect in the US markets what does this mean for silver short term? Thank you James Dine for the prediction of $500.00 but that means nothing to me. I think some people just want to be the first person to say something so 5 years down the road he can say I told you so. What I'm worried about is a near term collapse and what it means for silver and ordinary people.
Wont' a debt crisis also take down the precious metals? By definition, a debt crisis like triggered black friday and the 1929 market crash brings prices down of everything! Except food prices keep going up and up and up. I'm hearing reports that food shortages due to weather with corn, soybean, wheat and we could pay double for a muffin or toast. If the market collapses, and the cost of living rises, how is our silver coins going to help us weather such a crisis? You'll be making the same amount of money, paying double for the cost of living, and you won't be cashing in your silver or gold if the prices decline as we are holding on to gold and silver for a hyperinflationary episode.
If the market crashes, and silver does decline like 2006, how long do we think it will stay down, if at all? Gerald Celeste says the banks could close.
I've been doing everything I can to survive a crisis buying gold and silver but I'm afraid it's just not enough to meet what feels like a big black cloud looming and the skies are ready to break open? Am I getting the right feeling?
I've also noticed that since silver was creamed, all the newsletters writers including Turd have stopped give recommendations for silver options which seems to me means that legs are still shaky?
So what do we think is going to happen for the remainder of 2011? Are we waiting for another buying opportunity or do we expect we could get back to silver at $49-$50? Somebody help me catch up.