Why I think we are nowhere near bottom for Silver and Gold | TigerDroppings.com
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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
23167 posts

Why I think we are nowhere near bottom for Silver and Gold

I took another look at the history of Silver and Gold prices and the pattern is very obvious. If you look at the following 2 charts, you'll see that both metals historically peak at absurd values, then crash and CRASH HARD, as much as 80% last time. And unlike a stock market crash, where recovery time is relatively short (4-7 years at most historically) Precious metals go down, and stay down for A LOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOONNNNNNNNNNNNNNNNGGGGGGGGGG TIME. Had you bought silver or gold in 1980, before the crash, and held patiently for 31 years and sold at the last peak in 2011, you still haven't broken even if you adjust for inflation. Meanwhile, you had to pay for storage, lug those bars and coins around, and you weren't even getting dividends for your patience.

Image: http://upload.wikimedia.org/wikipedia/commons/e/e3/Gold_price_in_USD.png



Image: http://upload.wikimedia.org/wikipedia/commons/f/fc/Silver_price_in_USD.png



Below is the historical prices of Gold and Silver (in USD) going back 272 years.


Year S/OZ G/OZ G/S Ratio World Reserves
1840 1.29 20 15.5 N/A
1900 0.64 20 31.9 N/A
1920 0.65 20 31.6 N/A
1940 0.34 33 97.3 N/A
1960 0.91 35 38.6 N/A
1970 1.63 35 22.0 N/A
1980 16.39 612 37.4 N/A
1990 4.06 383 94.3 N/A
2000 4.95 279 56.4 420,000
2005 7.31 444 60.8 570,000
2009 14.67 972 66.3 400,000
2010 20.19 1,225 60.7 510,000
2011 35.12 1,572 44.7 530,000
2012 31.15 1,669 53.6


In earlier times, silver has commanded much higher prices. In the early 15th century, the price of silver is estimated to have surpassed $1,200 per ounce, based on 2011 dollars. The discovery of massive silver deposits in the New World during the succeeding centuries has been stated as a cause for its price to have diminished greatly.




I could be wrong, but I think Silver will drop below $10, and Gold below $700, and if history is any indicator, it will be there for awhile. Bitcoins however, will be $100 Million /BTC by the year 2025




Cold Cous Cous
LSU Fan
Obvious and pointed jeering
Member since Oct 2003
13943 posts

re: Why I think we are nowhere near bottom for Silver and Gold
How long until we start mining asteroids? That could be the next equivalent of the New World silver mines. I mean I have no interest in investing in precious metals but that is some Star Trek level shite right there.


Vols&Shaft83
Tennessee Fan
Member since Dec 2012
23167 posts

re: Why I think we are nowhere near bottom for Silver and Gold
quote:

How long until we start mining asteroids? That could be the next equivalent of the New World silver mines. I mean I have no interest in investing in precious metals but that is some Star Trek level shite right there.


NASA doesn't have the budget, what with Rex's Messiah spending it all on Muslim interests and the IRS's Staff luncheons and all.


Cold Cous Cous
LSU Fan
Obvious and pointed jeering
Member since Oct 2003
13943 posts

re: Why I think we are nowhere near bottom for Silver and Gold
quote:

NASA

Statist!

LINK /
LINK /


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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
31072 posts

re: Why I think we are nowhere near bottom for Silver and Gold
quote:

How long until we start mining asteroids?


Maybe when gold reaches $20 million per ounce.

It would take absolutely incredible resource depletion on Earth to make asteroid mining economically worthwhile. I laugh at people who preach resource conservation while simultaneously looking forward to drilling up there.


Cold Cous Cous
LSU Fan
Obvious and pointed jeering
Member since Oct 2003
13943 posts

re: Why I think we are nowhere near bottom for Silver and Gold
We'll see who's laughing in 20 years when you're stuck on earth and I'm banging Orion slave girls on my mining ship.

Gold & silver aren't really what they're going for up there. It's rare earths, and they will supposedly be able to tell which asteroid has them based on density or something. You find one that's even .5% platinum or iridium and you've cornered the market. And no enviro regs - you can basically blow it up to get at what you want.


ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
10176 posts

re: Why I think we are nowhere near bottom for Silver and Gold
quote:

It would take absolutely incredible resource depletion on Earth to make asteroid mining economically worthwhile. I laugh at people who preach resource conservation while simultaneously looking forward to drilling up there.


Most of the cost will be getting out of earths gravity. If someone can figure out how to make a carbon nanotube cable to the moon then it's on.


LSUTOM07
LSU Fan
Baton Rouge
Member since Dec 2011
525 posts

re: Why I think we are nowhere near bottom for Silver and Gold
Well this got off topic rather quickly..


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AUsteriskPride
Auburn Fan
Hunstville, AL
Member since Feb 2011
11448 posts

re: Why I think we are nowhere near bottom for Silver and Gold
Maybe it's got a little further to go, maybe not. Either way, it's a good buy if you're going to sit on it until real economic growth spurs up again.


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Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
41499 posts

re: Why I think we are nowhere near bottom for Silver and Gold
quote:

Most of the cost will be getting out of earths gravity. If someone can figure out how to make a carbon nanotube cable to the moon then it's on.


This. Well, almost.

Asteroid mining could be economically viable is you remove the insane costs to get material from the surface to orbit.

To do that, you need a space elevator.

It wouldn't connect to the moon though.

The counterweight would be in orbit.


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Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
41499 posts

re: Why I think we are nowhere near bottom for Silver and Gold
Back in topic though.

I cashed in on gold when the 2008 meltdown started and have already cashed out.


Easy money

I swear, it seems easier to make money in economic downtowns than it is in booming markets
This post was edited on 6/27 at 7:45 pm


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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Why I think we are nowhere near bottom for Silver and Gold
Im gonna grow a pair and go long on USLV, 3x silver bull!


wegotdatwood
Member since Aug 2009
17094 posts

re: Why I think we are nowhere near bottom for Silver and Gold
quote:

Im gonna grow a pair and go long on USLV, 3x silver bull!



What is that?


ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Why I think we are nowhere near bottom for Silver and Gold
an ETF tracking silver....3x....

ie a 10% move up in price is a 30% return and same goes the other way haha.....I feel like growing some hair on my balls


wegotdatwood
Member since Aug 2009
17094 posts

re: Why I think we are nowhere near bottom for Silver and Gold
But not really much risk since it's so low, right?


Vols&Shaft83
Tennessee Fan
Member since Dec 2012
23167 posts

re: Why I think we are nowhere near bottom for Silver and Gold
quote:

But not really much risk since it's so low, right?


Yeah there's a lot of risk, he could also lose 3x what silver loses if it goes lower. BTW, these leveraged ETFs will more often than not frick you in the ass.


wegotdatwood
Member since Aug 2009
17094 posts

re: Why I think we are nowhere near bottom for Silver and Gold
quote:

Yeah there's a lot of risk, he could also lose 3x what silver loses if it goes lower. BTW, these leveraged ETFs will more often than not frick you in the ass.



But it already around the $4 range. It's not like silver is going to go out of business.


Vols&Shaft83
Tennessee Fan
Member since Dec 2012
23167 posts

re: Why I think we are nowhere near bottom for Silver and Gold
quote:

But it already around the $4 range. It's not like silver is going to go out of business.


Well that would require another 75% drop in silver for it to hit $4. Not really in range. I'm sure there's a safe guard in place with this 3x Bull ETF to prevent share holders from losing more than 100% of their investment, but I'm not sure how that works, Benny probably is the best person to explain these things.


ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Why I think we are nowhere near bottom for Silver and Gold
like 50 cent said

"get rich or die trying"

up 6% today haha, i sold it and im done, i dont want a heart attack watching the price of silver

I did buy IBM this morning


wegotdatwood
Member since Aug 2009
17094 posts

re: Why I think we are nowhere near bottom for Silver and Gold
Analysis on IBM?


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