Price of Silver

Hatone

Aegis wrote: »

What about when countries discover new silver mines? It could easily happen, and could on its own ruin your entire reason for investing in silver. Best not to assume that we're imminently running out of anything, as a general rule it just leads to sheepish looks when we find a new source. As an example, look at oil. Based on the predictions from 3 or 4 decades ago we were supposed to have run out of it by now. Instead it's still being produced and discovered year on year.

Absolutely agree - because silver is not a highly sought after or highly priced commodity, as opposed to say, gold & oil, the exploration for silver mines is not being carried out at the same rate as gold/oil exploration is. Demand reflects exploration I think, and with ever improving technology, I still feel it will be several decades before we see a shortage of oil/gold mines.

jon3001

Aegis wrote: »

What about when countries discover new silver mines? It could easily happen, and could on its own ruin your entire reason for investing in silver.Best not to assume that we're imminently running out of anything, as a general rule it just leads to sheepish looks when we find a new source.

There are actually very few dedicated silver mines. Silver is mainly a by-product of mining for other metal (such as gold, copper, zinc and lead).

Aegis wrote: »

As an example, look at oil. Based on the predictions from 3 or 4 decades ago we were supposed to have run out of it by now. Instead it's still being produced and discovered year on year.

Most of the cheap oil is basically gone though and costs are increasing. There is a lot of oil out there but it's expensive to extract. Once oil stabilises above $100/barrel then development of projects such as the Alberta Tar Pits might become more viable.

In the long run the key to cheap commodities is expensive commodities. Once prices become high it attracts new investment into developing the supplies as well as alternatives.

SilverStandard

Anyway prices are going down again now from almost $16 oz now down to $14 something.

If the nice Government men manipulate the price down more I will be buying more.

RDB

Yes the price is going down again.

As long as the men in Black keep selling silver that isnt there they can control the price.

SilverStandard

Is there a way to buy about one tonne of silver bullion in the UK without paying VAT?

Its just finding someone with that much 2nd hand bullion......

dunker1

One must also take into account the currency fluctuations when holding any of the commodities, recently we have seen a run up in prices of some commodities but for any uk investor those gains would have beeen minimal or even negative due to the strengthening of the pound versus the dollar.
Baring in mind the whole commodity boom theory is tied in with a collapse of the dollar then this must be taken into account as its likely that you wont see all of the gains.

crazygaijin

have a look at silverexchange.co.uk but they are not the cheapest.

On the other thread it was said Guernsey mint is the cheapest.

Maybe others know of better places?

jon3001

dunker1 wrote: »

Baring in mind the whole commodity boom theory is tied in with a collapse of the dollar then this must be taken into account as its likely that you wont see all of the gains.

I disagree.

The reasoning behind the 'commodity super-cycle' is that growing economies (such as China and India) are going to require more raw materials and energy [requiring industrial metals, oil, etc] to build their infrastructure and their new middle-class will want improved diets [requiring agriculture and livestock]. So long-term demand is going to rise.

In the meantime the develoment of new supplies is lagging. The lack of slack between supply and demand is going to result in long-term higher commodity prices.

sabretoothtigger

These guys on this video below are good I think, I posted their tip for gold/silver about 6 weeks ago and it was a good one as it turned out.

Here they talk about charting wider commodities and inflation vs global demand trends, etc which right now seems a smarter play then purely precious metals

http://www.ino.com/info/373/CD3778/&dp=0&l=0&campaignid=3

click on the videos tab




Breaking the 200 sma


http://quotes.ino.com/chart/?s=NYBOT_CR&v=dmax&w=1&t=l&a=200


Reuters/Jefferies CRB

http://stockcharts.com/charts/gallery.html?$CRB

dunker1

jon3001 wrote: »

I disagree.

The reasoning behind the 'commodity super-cycle' is that growing economies (such as China and India) are going to require more raw materials and energy [requiring industrial metals, oil, etc] to build their infrastructure and their new middle-class will want improved diets [requiring agriculture and livestock]. So long-term demand is going to rise.

In the meantime the develoment of new supplies is lagging. The lack of slack between supply and demand is going to result in long-term higher commodity prices.

Yes yes we are all aware of that, impossible to avoid Mr Rogers for the last couple of years saying this, not in doubt. My point is about the currency implications for a uk investor where the dollar declines rapidly which we all know is positive for commodity prices, they may not see the returns they would like unless sterling mirrors the fate of the dollar, possible i suppose, predicting currencies is the ultimate mugs game.