Gold vs. Silver.......debate heating back up

10 posts / 0 new
Last post
#1 Sun, Sep 11, 2011 - 4:12am
beatlebum19
Offline
-
Fort Collins, CO
Joined: Jun 14, 2011
26
89

Gold vs. Silver.......debate heating back up

I think with the news of the new PAGE rolling out, the debate between the upside of gold versus silver has been awakened from it's kind of mellowed out state that it's been in for a bit. It looks as if there are two prevalent arguments from each side. For Gold it's the Free Gold theory that the one time revaluation of gold will leave silver and the other precious metals in the dust, because when the fiat falls it will be more of a social correction then a supply and demand correction. That is a valid theory and does have many supporters of that doctrine. The other opinion is the one which I follow. I like to call it the Mike Maloney theory, I say that because his book is how I came into the PM sanctuary ( no shameless plug intended). His theory is based on cycles and how they never fail to repeat throughout history. Well most of us Turdites know that on average gold has held more value than silver in ounces by about a 12:1 Ratio. The reason that came to be was there was known to be around 12 times more silver than gold in the world, but since the tech revolution there actually less physical silver then there is gold. Silver is by far the most conductive / reflective element known to man, and it is by a large margin. As the silver supply runs out and the demand by manufactures' gets larger and larger it creates the perfect storm for silver to over throw gold as the king of the precious metals. 
Right Now we're at about a 45:1 ratio. Just by correcting that we can see that puts silver at around 150$. I believe PAGE is deliberately ignoring silver to put the attention on gold, with not much silver left I believe the Chinese are trying to hoard as much Silver as possible. The world economy will literally be controlled by silver. That is no understatement, for those of you who do not know , every single piece of modern day technology requires silver for it to work. In the past 30 odd years the world as gone from having 12 times the amount of silver than gold to gold out numbering silver, that is all virtually from the tech boom. I think before fiat crashes a lot of people will try to scare others away from silver including the Chinese and I think PAGE will be the beginning of this. I do want to make this clear however, NO MATTER WHICH OPINION YOU TAKE YOU CAN NO GO WRONG, KEEP STACKING. One will have more upside then the other but when it comes to gold and silver you cant make a bad decision. STACK EM UP TURDITES
Edited by: beatlebum19 on Nov 8, 2014 - 5:08am
Sun, Sep 11, 2011 - 8:49am
Brotha Bob
Offline
-
TN
Joined: Jun 15, 2011
182
800

Which will run further?

Which will run further? Not sure, but both will run far. The industrial uses of silver does support it's dual use, money and industrial. But, how much industrial demand will there be at the end of fiat? Also, silver right now has shackles on it's feet due to the higher margin requirements. Once the margins are as high for gold, I think people will turn back to silver. Personally, I say stack as much as both. If you can't stack gold, stack silver. Both will treat you just well. Some is better then none. For PAGE concentrating on gold first, it makes sense to me. When opening a new market, I would want to take "baby steps". Open with gold, test the system, make sure it all works. Then, roll out silver. Any new system will have bugs. Either in acceptance, implementation, or execution. The last thing they want is for a SNAFU or the entire thing to be FUBAR. The major concern I have is the settlement in RMB. I would hate to be holding X amount of RMB that I could not convert or transfer home.

May God Help Us All But, what do I know?
Sun, Sep 11, 2011 - 5:33pm
Desert Fox
Offline
-
napa, CA
Joined: Jun 14, 2011
185
3567

Cutting-edge

Hard to say and I won't try to change any minds but just reiterate the more obvious.

Having both at this stage doesn't feel like a bad thing.

Silver seems to always play the Underdog/Long-shot role, but Underdogs do win and Long-shots do payoff handsomely sometimes.

The World's financial balance sheet looks a bit unbalanced currently, primarily unbalanced by vast sums of paper and digital blips. Might just be time to look at a new {or very old} way of trying to keep the Financial Wizards from hurting themselves {and us} in their laboratories.

Gold for security, Silver for The Grand-slam. {Both in your possession or at least under your control}

Everybody does the debt, credit card, paper thing. Be different and unique. Cutting-edge even.

cool

Sun, Sep 11, 2011 - 11:18pm
Sycee
Offline
-
WA
Joined: Jun 19, 2011
197
487

The only thing the PAGE is

The only thing the PAGE is going to do is put retail gold and silver into the PRC's hands. But don't worry, I'm sure they will give you fair value of your gold contracts in RMB which they will create out of thin air.

Sat, Nov 5, 2011 - 1:54am
hema
Offline
Joined: Nov 5, 2011
2
1

The NeoCons do not have the

The NeoCons do not have the influence they think they have. So let's not make these clowns seem more formidable than they really are. We are winning and they are losing..more and more every day. air conditioning Leeds

Sat, Nov 5, 2011 - 1:50pm
stoneeh
Offline
-
Austria
Joined: Jun 15, 2011
462
0

They suppress silver with

They suppress silver with much more urgency than they suppress gold. So the conclusion should be obvious. You don't hold something back with all force that doesn't need to be held back with all force.

Sun, Nov 6, 2011 - 8:22am
spudboy
Offline
Joined: Jun 14, 2011
13
38

Silver

Good discussion here. I think that to really understand where this is going you have to be well versed in history, specifically monetary history. I usually shun using the word "always", but it fits here:

In a precious metals bull market, silver ALWAYS outperforms gold. In a precious metals bear market, silver ALWAYS underperforms gold. Go and fact check it. Since 2001 silver's price is up about 800%, and gold's price is up about 600%, and there are many more examples of this precious metals market phenomenon.

The key for silver's price is when it once again attains monetary status, which it has had for thousands of years and will inevitably attain again as this crisis accelerates. It has only been because of fraud and shenanigans like the crime of 1873 that silver has been suppressed as a monetary asset. When silver again becomes a monetary asset as well as an industrial asset due to people increasingly losing confidence in paper assets, its price will go to the moon along with gold.

Sun, Nov 6, 2011 - 5:45pm
WheelerSilver
Offline
-
Vernon, VT
Joined: Jun 17, 2011
113
549

I like Silver Baby! OH Yea!!

I like silver for several reasons! Historically Silver to Gold ratios have been around 15:1 or 20:1, not 50:1 or 60:1 like recent days. Next, silver is being constantly destroyed at a very high rate of speed in industry. Gold is not used up nearly as much and thus is being stored by white collar folks and fat lards like the FED. Silver is actually being destroyed by industry FASTER than it's being pulled out of the ground and is running at a deficit. Next, silver paper manipulation is MUCH stronger than gold due to its super small net market value, and it's "custodian" (JP Morgan) is corrupt thru and thru (I mean seriously, they were shorting silver when it was at 5$/oz! Who does that!?) Thus the odds that silver's true value is WAY higher than todays SLV spot is VERY strong. lastly, Silver is affordable! Blue collar folks can still go pick up a few ounces here and there for savings etc. 

https://www.wheelersilver.com ~Handmade Fine Silver Bullion~
Sun, Nov 6, 2011 - 8:25pm
spudboy
Offline
Joined: Jun 14, 2011
13
38

History repeats itself

The gold/silver ratio was at 16:1 from 1792 until 1873, and then silver was (politically) demonetized. It re-attained that ratio again in 1919, 1968 and early 1980. It will almost certainly do so again within the next decade. At a $3000 gold price (admittedly a conservative estimate, IMO), that puts silver at $187.50 an ounce.

We've got at least 5 years left in this precious metals bull market, beginning in approximately 2001 to the present. Eric Sprott feels that the GSR will go to single digits. Gold will preserve your wealth, but physical silver bought at the right time (like now) will increase your purchasing power in the long run.

Mon, Nov 7, 2011 - 1:10pm (Reply to #9)
WheelerSilver
Offline
-
Vernon, VT
Joined: Jun 17, 2011
113
549

Monetary Silver

I agree 100% Spud. You know that silver will be regaining its monetary value after the fiat system falls flat too. I find it extremely interesting that the entire modern world is running on a fiat​ curency system. When Fiat falls flat on its face the world will demand a gold standard. Perhaps the powers that be will introduce a one world currency backed by gold. Problem is, there is simply not enough gold to put the entire world on a gold standard without pushing the price into absolutely unattainable absurdity. Therefore Silver will likely be re-monetized along with copper perhaps. Anyhow it will be a scary time indeed when SHTF like that.

https://www.wheelersilver.com ~Handmade Fine Silver Bullion~
randomness