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Al, Trader Roger and Bahman Yamini discuss why silver makes so much sense

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August 31, 2011

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Discussion
13 Comments
    Aug 31, 2011 31:36 PM

    Interesting commentary and subject. Mr. ‘Terms of Service’ has a good point in that in the 2008 credit crunch silver fell from 21 to 8.40 (that’s -60%) whereas gold fell from $1030 to $680 (that’s 33%) and it’s as Trader Rog says, a smaller market, moves faster.

    I am writing really because I just noticed something fascinating! I missed this one completely until your comments made me go and look at the gold:silver ratio charts on stockcharts:
    http://stockcharts.com/freecharts/gallery.html?$gold:$silver

    Take a look at the Point & Figure chart. Even with the crash in silver from $50 to 32 in May and the rise in gold from $1500-1900 lately, the DOWNTREND at 45 degrees in the gold:silver ratio in still (only just) intact. It hasn’t been broken. There is no uptrend on that chart.
    The ‘X’ at 46.50 that is 4 columns in gfrom the right was right against that line. Had there been an X at 47.00 the line would have been violated. However, it wasn’t. Is this significant?

    I am beginning to doubt that we will get a 2008 style crash in gold and silver this year (gold $1400 silver $20, say). My favourite big silver stock is at a new high again while silver is sitting there doing very little. Maybe the stock is leading the metal? Or jus catching up? Whatever, it looks like a bullish bias for the moment.

      Aug 31, 2011 31:20 PM

      Hi again silverbug(Dave),

      If you want to know why silver and gold should not fall in value in the foreseeable future, read a great newsletter called “Things that make you go hmmm”. I did a Kitco audio with the author yesterday and I am having him on the upcoming Weekend Show for possibly two segments.

      Best,

      Big Al

    Aug 31, 2011 31:40 PM

    I meant -60% for silver and -33% for gold in 2008.

    Aug 31, 2011 31:59 PM

    Silver makes more sense for me because I can buy more ounces for the money.

      Aug 31, 2011 31:23 PM

      In my mind silver is going to $60. per ounce before it goes to $20. per ounce.

        Aug 31, 2011 31:23 PM

        Hi Paul S,

        It’s all about REAL MONEY. Even Dennis Gartman, who in the past has been a real gold bear, is not admitting it is the international currency.

        Interesting huh?

        Big Al

    Aug 31, 2011 31:11 PM

    Big Al,
    Absolutely! Silver is the play of not the year – but the DECADE….all the fundamentals are lined up for the “perfect wave” -UP! Every natural resource has its day. Guys, lets put it this way..here is the analogy – If Gold is the “agriculture of the metals” then SILVER is the “water of the metals”. Meaning there is HIGH demand (and growing) and needed everywhere for everybody – monetarily speaking –
    in this economic atmosphere – your dang right. And, finally, here is the kicker: unlike Gold, it gets used up in multitudes of industrial applications. So, it is not only money in the pure sense of the word, but also a dwindling resource. THEN they have to go dig up more – work and vast resources are necessary for that. Alas, there goes the price – up. I am not an investment adviser but here is the way it is: Get in it and stay in it! I am on a two bagger with the stuff and fast approaching a three and I am not looking back. I have never seen such a perfect supply and demand schism.
    All the best,
    Marc

      Aug 31, 2011 31:25 PM

      HI Marc,

      Obviously, I completely share your enthusiasm for purchasing silver. I mean, common man, why not!

      Keep your comments coming my friend,

      Big Al

    Aug 31, 2011 31:40 PM

    Big Al et al.

    I look at silver and gold both as currency. One of large denotations and the other of smaller.

    If the sky falls in and we go into hyper-inflation followed by civil unrest I plan on using the Gold and Silver coins as currency, (barter). If I have to purchase a large item I will use a gold coin(s). In the normal trading for smaller items it is more logical to use Silver coins; if you used a gold coin you would have to cut it into smaller wedges. This would diminish its value.

    I plan for the worst; hope and pray for the best.

    Dr. Dutch

      Sep 01, 2011 01:48 PM

      Hi Dr. Dutch,

      I too plan for the worst and hope for the best.

      That is why I have possession of our silver rounds and that is why I have positions in various gold and silver related stocks.

      That is also why I have a couple pieces of property. (Just in case.)

      That is also why, and this is really important to me, that I stay as well informed as I can.

      Best,

      Big Al

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    Feb 02, 2014 02:12 PM

    Not!!! Im not taking ahnynitg by force that doesn’t belong to me. I live by the laws of GOD and I want to be treated with respect so I have to give it. Thanks for the lesson in the real American way though, take take take. I guess its the nature of most, just not me.