What Will You Do When Silver Hits $40 An Ounce?
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What Will You Do When Silver Hits $40 An Ounce?
I was thinking about singing a couple of stanzas of "Deep In The Heart of Texas" or maybe shooting my gun in the air.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”
Re: What Will You Do When Silver Hits $40 An Ounce?
I will melt down several gallons and bathe in it while drinking champagne.
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Re: What Will You Do When Silver Hits $40 An Ounce?
amazing run...maybe trade some for gold?
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Re: What Will You Do When Silver Hits $40 An Ounce?
Adam1226 wrote: I will melt down several gallons and bathe in it while drinking champagne.
you must have a stash bigger than ft knox under you house!
Re: What Will You Do When Silver Hits $40 An Ounce?
I plan to buy some on the next pullback.
Re: What Will You Do When Silver Hits $40 An Ounce?
I will light the candles on my shrine I have setup for the Hunt brothers and begin my silver $50 an ounce vigil.
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Re: What Will You Do When Silver Hits $40 An Ounce?
read something 2nite that the inflation-adjusted high is over $100 / oz ...somehow, $50 feels like a hop, skip & jump away
Re: What Will You Do When Silver Hits $40 An Ounce?
Well....as of this morning $40 is here! When I posted the "silver is due for a pullback" thread, it was at $31. The only thing I'm doing at the moment is adding cash to the VP. We should have some weakness or consolidation in the summer so there might be an opportunity to pick up gold or miners at a slight discount. I'm not adding to silver until I see serious weakness or a long period of consolidation.
Re: What Will You Do When Silver Hits $40 An Ounce?
Trade it all for tulips, or a website with a cool name, or maybe some ethanol stock. Better yet, nothing at all, since silver doesn't fit into my investing profile.
Last edited by TBV on Fri Apr 08, 2011 3:30 pm, edited 1 time in total.
Re: What Will You Do When Silver Hits $40 An Ounce?
OK, that made me laugh out loud.MediumTex wrote: I was thinking about singing a couple of stanzas of "Deep In The Heart of Texas" or maybe shooting my gun in the air.
I won't do anything. About 1% or so of my total investments is in silver (10% of the VP) and I plan to keep it. Now if it were to doubled again, then I would sell some.
"Machines are gonna fail...and the system's gonna fail"
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Re: What Will You Do When Silver Hits $40 An Ounce?
I will wish I had bought silver, I suppose.
Re: What Will You Do When Silver Hits $40 An Ounce?
I sold off a very large position in silver in early November of last year, when the spot price was around $24. It had gone up about 35% since I bought in, but I sold it in order to convert to the PP. Ouch.
So apparently I can't time the markets worth a damn. But really, that's why I decided to convert to the PP in the first place. So in a strange way it all makes sense, and I have no regrets.
So apparently I can't time the markets worth a damn. But really, that's why I decided to convert to the PP in the first place. So in a strange way it all makes sense, and I have no regrets.
Re: What Will You Do When Silver Hits $40 An Ounce?
What Will You Do When Silver Hits $40 An Ounce?
threaten to melt down my wife's silverware sets... just to see the reaction i get...
(first she said i am going to kill you... then she said wait till it hits 60) LOL
threaten to melt down my wife's silverware sets... just to see the reaction i get...
(first she said i am going to kill you... then she said wait till it hits 60) LOL
Last edited by l82start on Fri Apr 08, 2011 11:06 pm, edited 1 time in total.
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Re: What Will You Do When Silver Hits $40 An Ounce?
l82start wrote: What Will You Do When Silver Hits $40 An Ounce?
threaten to melt down my wife's silverware sets... just to see the reaction i get...
(first she said i am going to kill you... then she said wait till it hits 60) LOL
might not be a long wait!
Re: What Will You Do When Silver Hits $40 An Ounce?
What will you do when silver hits $50 an ounce?murphy_p_t wrote:l82start wrote: What Will You Do When Silver Hits $40 An Ounce?
threaten to melt down my wife's silverware sets... just to see the reaction i get...
(first she said i am going to kill you... then she said wait till it hits 60) LOL
might not be a long wait!
I've never been very good at knowing when to say when. I either bail way too early (anyone else sell Apple right before the iPod took off?) or wait until the bloom is off the rose (Petrobras). Considering taking some chips off the table if we hit 50.
"Machines are gonna fail...and the system's gonna fail"
Re: What Will You Do When Silver Hits $40 An Ounce?
I will remind any werewolf I encounter that even at $50 an ounce we can still afford plenty of silver bullets.Pkg Man wrote: What will you do when silver hits $50 an ounce?
Last edited by MediumTex on Wed Apr 20, 2011 5:48 pm, edited 1 time in total.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”
Re: What Will You Do When Silver Hits $40 An Ounce?
In wonder if silver is simultaneously benefiting from the improved economic outlook (whether right or wrong, it is better than it was six months ago) and the fear of inflation?
I know HB said silver demand is 95% industrial, but I have a hard time squaring the meteoric rise in silver over the past months solely due to increased industrial demand.
I know HB said silver demand is 95% industrial, but I have a hard time squaring the meteoric rise in silver over the past months solely due to increased industrial demand.
"Machines are gonna fail...and the system's gonna fail"
Re: What Will You Do When Silver Hits $40 An Ounce?
truth is the silverware will probably stay in one piece unless we hit a Argentina like scenario, I do have some VP bullion that I should probably have a sell number for, but i don't know what that number is, I haven't even been tempted to sell once yet in the 17 or so years i have held onto it, right now I guess I am hoping the sell price is like pornography and "I will know it when I see it "Pkg Man wrote:
What will you do when silver hits $50 an ounce?
I've never been very good at knowing when to say when. I either bail way too early (anyone else sell Apple right before the iPod took off?) or wait until the bloom is off the rose (Petrobras). Considering taking some chips off the table if we hit 50.
at this point anything I sell it for is a healthy gain so maybe leaving some money on the table wont be that hard to take, I figure if I can sell some silver and top off this years Roth contributions with pp assets I should be happy
-Government 2020+ - a BANANA REPUBLIC - if you can keep it
-Belief is the death of intelligence. As soon as one believes a doctrine of any sort, or assumes certitude, one stops thinking about that aspect of existence
-Belief is the death of intelligence. As soon as one believes a doctrine of any sort, or assumes certitude, one stops thinking about that aspect of existence
Re: What Will You Do When Silver Hits $40 An Ounce?
This silver move is pretty amazing.
Normally, anything that goes straight up results in chaotic price action when it starts to stumble. I am thinking about the oil moves in 2008.
The next six months ought to be fascinating for silver.
Normally, anything that goes straight up results in chaotic price action when it starts to stumble. I am thinking about the oil moves in 2008.
The next six months ought to be fascinating for silver.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”
Re: What Will You Do When Silver Hits $40 An Ounce?
Indeed, although I'm not as big a fan of the recent action as I should be. I got a pretty large chunk of my VP in on silver last May, so I got lucky that I showed up for the party in time. Just about all of my VP strategy is related to gold and mining companies, but I look at silver as a slingshot play and decided to reach for the extra juice. Near the end of gold bull markets, silver usually performs even better. I'm not planning on holding silver forever. My initial target to get out was a 25-1 S/G ratio somewhere around 2013-2017. The plan was to wait for the parabolic gold price action and ride the super silver rocket alongside before selling out completely. I wasn't expecting to make any plans to swap out this early, but if we hit it, I'll convert every ounce of silver I have back into gold.MediumTex wrote: This silver move is pretty amazing.
Normally, anything that goes straight up results in chaotic price action when it starts to stumble. I am thinking about the oil moves in 2008.
The next six months ought to be fascinating for silver.
Not to say I won't buy back in after a steep correction, but I don't see much use for silver if we hit those ratios. Vertical price action without periodic corrections isn't healthy. It's always possible silver plateaus peacefully at some point, but it seems more likely that a heavy sell-off is in the cards.
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Re: What Will You Do When Silver Hits $40 An Ounce?
hi Wonk,
Can you elaborate more on the 25:1 ratio target? The ratio has moved a long way of late as you know, but I understand the historic ratio is 16:1. Is your comment about lack of uses for silver @ that ratio relating to silver's industrial demand? I'm generally of the view that silver industrial demand is price in-elastic, even though I have little basis for the view.
BTW, I recently took some profits from silver miners and parked funds to PHYS...working out well so far. (My hands were shaking trying to hold on to the rapid rise! I'm doing my best in resisting the temptation to sell any bullion.)
Also, do you know if there are analysts/commentators/bloggers with that specific ratio target in mind? I'd be interested to review their ideas.
thx
p
Can you elaborate more on the 25:1 ratio target? The ratio has moved a long way of late as you know, but I understand the historic ratio is 16:1. Is your comment about lack of uses for silver @ that ratio relating to silver's industrial demand? I'm generally of the view that silver industrial demand is price in-elastic, even though I have little basis for the view.
BTW, I recently took some profits from silver miners and parked funds to PHYS...working out well so far. (My hands were shaking trying to hold on to the rapid rise! I'm doing my best in resisting the temptation to sell any bullion.)
Also, do you know if there are analysts/commentators/bloggers with that specific ratio target in mind? I'd be interested to review their ideas.
thx
p
Re: What Will You Do When Silver Hits $40 An Ounce?
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Last edited by doodle on Sun Jan 17, 2021 10:22 am, edited 1 time in total.
All of humanity's problems stem from man's inability to sit quietly in a room alone. - Blaise Pascal
Re: What Will You Do When Silver Hits $40 An Ounce?
The 16:1 ratio is roughly the earth's natural ratio between the two metals. When both were used as money under a bi-metallic standard, this is the ratio used. I can't say we'll ever see 16:1 again. We might, but I would imagine silver would need to be officially recognized as money again. After silver was de-monitized and the subsequent Hunt Bros story played itself out around 1980, silver had a lot of excess supply for the market to work off. It appears we're at the point where demand is truly outstripping supply.murphy_p_t wrote: hi Wonk,
Can you elaborate more on the 25:1 ratio target? The ratio has moved a long way of late as you know, but I understand the historic ratio is 16:1. Is your comment about lack of uses for silver @ that ratio relating to silver's industrial demand? I'm generally of the view that silver industrial demand is price in-elastic, even though I have little basis for the view.
So, I picked 25:1 as an arbitrary number that appears to have buffer built in. There's a good chance I would sell all of my silver at 30:1 at the end of a precious metals bull market. We don't appear to be close to an end in the gold bull market, so I'm remaining staunch at 25:1.
What I meant by "not much use" for silver is that gold is still money. The silver market is small and fickle. I'd feel more confident with my holdings in gold if the ratio were, say, under 30:1. If the ratio were 60:1 or higher, I'd feel comfortable moving value into silver during a precious metals bull market. It really just comes down to a risk/reward assessment. At under 30 or 25:1, I just don't feel like playing with fire. Give me the blowtorch at 100:1 though.
As for fundamentals, I really like silver. It's industrial uses are well documented and--quite frankly--legendary. It is probably one of the most exciting industrial metals around. On the investment side, I like silver during bull markets in gold because the common man can participate. In most second and third world countries, many people find gold too expensive. But many can afford a silver coin. Given the inflation in the far east (especially China), I think silver remains the "backup" metal of choice for many people trying to protect their purchasing power.
To my knowledge, no one has advocated exiting at 25:1. You'll see all kinds of cases being made at 16:1 or 10:1, but I don't like the risk involved with that scenario. I felt very confident that silver would cut the ratio in half (from 60 to 30), but beyond that the risk begins to mount. For most people looking to leverage gold, I'd rather recommend a diverse basket of mining stocks--especially given current silver prices.murphy_p_t wrote:
Also, do you know if there are analysts/commentators/bloggers with that specific ratio target in mind? I'd be interested to review their ideas.
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Re: What Will You Do When Silver Hits $40 An Ounce?
Pkg Man wrote: In wonder if silver is simultaneously benefiting from the improved economic outlook (whether right or wrong, it is better than it was six months ago) and the fear of inflation?
I know HB said silver demand is 95% industrial, but I have a hard time squaring the meteoric rise in silver over the past months solely due to increased industrial demand.
might be a short squeeze.
notice the date on this article.
http://kingworldnews.com/kingworldnews/ ... mated.html
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Re: What Will You Do When Silver Hits $40 An Ounce?
took some silver off table...chart is too steep...
from Wonk-
"It's always possible silver plateaus peacefully at some point, but it seems more likely that a heavy sell-off is in the cards."
not sure there's much precedent for this...
i raised some cash & lowered cost basis significantly...thinking silver may correct sharply...probably pull gold with it? i was very tempted to buy gold w/ the silver, but opted for US$
from Wonk-
"It's always possible silver plateaus peacefully at some point, but it seems more likely that a heavy sell-off is in the cards."
not sure there's much precedent for this...
i raised some cash & lowered cost basis significantly...thinking silver may correct sharply...probably pull gold with it? i was very tempted to buy gold w/ the silver, but opted for US$