REALIST NEWS - DO NOT SELL YOUR SILVER - BUY MORE!

http://www.realistnews.net From Jason Hommel: Silver dipped below $36/oz. this morning, down about 8% from yesterday, and down about 27% from the high last week of about $49.50/ per troy ounce. (A Troy oz. is about 10% heavier than a the more common international avoirdupois ounce.)
Some people are saying "this is like 1980 all over again" and that silver will now crash. Nothing could be further than the truth.
The truth is that the amount of money they have printed up since 1980 is ten times higher, so if you adjust for inflation, the peak price from 1980 should be more like $500/oz. in today's dollars.
The next key difference is that in 1980, interest rates, the amount paid on bonds, rose to over 20% per year. Today, interest rates are close to zero. Interest rates make holding bonds more attractive.
The next thing is that the US government money printing driven inflation is just beginning, it's not remotely close to ending. The US annual budget is about $3.8 trillion, and the government collects about $2.2 trillion, leaving a gap of about $1.6 trillion that is met by money printing, which makes the value of the dollar go down. (http://tinyurl.com/3ozdljx (April 7th news item))
$1.6 trillion of new money can also expressed as $1600 billion, or $1,600,000 million.
For comparison's sake, new investment demand for physical silver last year was only 250 million ounces, at, let's say an average of $35/oz., was just under $9 billion, or only $9000 million.
Silver is not in a bubble in terms of prices.
The bubble in stocks in 1929 was caused by debt financing.
The bubble in housing in 2007 was caused by debt financing.
You cannot borrow money to buy silver. Thus, silver is NOT in a bubble.

Category:

Education

Tags:

• silver
• gold
• sell
• buy

[DillonDee1]

Somebody told me I should maybe buy gold or silver, but on my last major investment I bought $25,000 in Ford stock at not much over $1 per share, It's now worth about $250,000.00.

Gold? Silver? NO THANKS!!

[jsnip4]

@DillonDee1 Some people get lucky. I bought silver at $10 and it hit $50 not too long ago. The difference is that when you sell your stock, you pay taxes, whereas I do not when it comes to gold and silver. Not to mention, you should exiting your Ford stock asap and scooping up gold or silver just as fast. When the market goes, so does your stock.

[DillonDee1]

sell by Friday & you may can net $24-25

[jsnip4]

@DillonDee1 I will love nothing more than to see $10 silver so I can load the boat one last time. It will be blowing pat $50, it's just a matter of how soon. The bankers always destroy an asset's value before scooping it up for pennies on the dollar. All you and I need to do is ride thir coat tails.

[Gentilseulement]

Down we go!

[jsnip4]

@Gentilseulement Yep, see my latest video.

[DillonDee1]

@jsnip4 -- OK, YOU WERE WISE TO SELL YOUR SILVER AT $50

[EndTheFed2011]

As far as I'm concerned I will only sell some of my silver if I am desperate and need to pay for things to survive as it is an endangered precious metal and will most likely be extinct in the not to distant future. Silver will be worth a fortune in less than 10 years.

[EndTheFed2011]

"You cannot borrow money to buy silver."

I've heard that before, can someone please explain why physical silver can't be bought with borrowed money?

[thrasher956]

@Gentilseulement Ag is a volatile market. I'm in it for the long term investment. Ag isa bullish market with healthy corrections through price or time. Hold on to your paper triangles, my friend.