What's going on with silver?

Discussion of the Gold portion of the Permanent Portfolio

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Ad Orientem
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Re: What's going on with silver?

Post by Ad Orientem » Mon Jul 27, 2020 11:06 pm

drumminj wrote:
Mon Jul 27, 2020 11:03 pm
Gold had a quick $40 drop as well.

Yeah. I saw that after I posted. Purely an educated guess, but it may have just been some large institutional investor or a big time trader booking some profit.
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Re: What's going on with silver?

Post by Ad Orientem » Wed Aug 05, 2020 11:08 am

Gold just hit a fresh record high — but some say silver is set to outperform gold

https://www.cnbc.com/2020/08/05/investi ... rices.html
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Re: What's going on with silver?

Post by Hal » Wed Aug 05, 2020 11:20 am

Ad Orientem wrote:
Wed Aug 05, 2020 11:08 am
Gold just hit a fresh record high — but some say silver is set to outperform gold

https://www.cnbc.com/2020/08/05/investi ... rices.html
Good Morning Ad Orientum et al,

Do you think its the USD actually taking a dive??
As an aside, down here in "The Peoples Paradise", the NON-BANK vaulting services have been closed by State Government decree.
Didn't see that coming :o

The banks remain open however....
https://www.macrobusiness.com.au/2020/0 ... -lockdown/
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Re: What's going on with silver?

Post by Xan » Wed Aug 05, 2020 11:27 am

Hal,

What is a non-bank vaulting service? Are you saying that people's safe deposit boxes are unavailable? Does this affect eg the Perth Mint?
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Re: What's going on with silver?

Post by Ad Orientem » Wed Aug 05, 2020 11:36 am

Hal wrote:
Wed Aug 05, 2020 11:20 am
Ad Orientem wrote:
Wed Aug 05, 2020 11:08 am
Gold just hit a fresh record high — but some say silver is set to outperform gold

https://www.cnbc.com/2020/08/05/investi ... rices.html
Good Morning Ad Orientum et al,

Do you think its the USD actually taking a dive??
As an aside, down here in "The Peoples Paradise", the NON-BANK vaulting services have been closed by State Government decree.
Didn't see that coming :o

The banks remain open however....
https://www.macrobusiness.com.au/2020/0 ... -lockdown/

I think dollar weakness is part of the equation. (cf this https://www.cnbc.com/2020/08/04/the-fe ... -soon.html) But in the case of silver there are other factors at work. Silver tends to be more volatile than gold. So when gold is hot, silver is often smoking. And the reverse is true. During the multi-year lag after 2011 where PMs retreated and then tread water for long period, silver got killed. The silver/gold price ratio has been climbing for years to the point where it recently topped 100:1. That was nuts. So for the last few years silver has been dirt cheap compared to gold. In addition to being undervalued as a PM, many analysts see a likely increase in industrial demand. Unlike gold, where once you get past jewelry and the occasional odd dental work, there are relatively few practical uses; silver is also an industrial metal. Techy stuff in particular consumes a lot of silver and the demand is forecast to grow. Also analysts are predicting a gradual decline in production for a variety of reasons. So in the near term, silver might well have some room to run and outperform gold.
Last edited by Ad Orientem on Wed Aug 05, 2020 12:44 pm, edited 1 time in total.
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Re: What's going on with silver?

Post by Hal » Wed Aug 05, 2020 12:11 pm

Xan wrote:
Wed Aug 05, 2020 11:27 am
Hal,

What is a non-bank vaulting service? Are you saying that people's safe deposit boxes are unavailable? Does this affect eg the Perth Mint?
Hi Xan,
A non-bank vaulting service is a private vault full of safety deposit boxes, and you are correct. No access for the next six weeks!
This law affects Victoria only at the moment, so the Perth Mint in Western Australia is unaffected.

Here is an example of a private vaulting service

https://guardianvaults.com.au

ps: Any government, anywhere could enact a law like this. We also have a curfew.... its like being under occupation.
https://www.youtube.com/watch?v=s6NPpO4gbeU
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Re: What's going on with silver?

Post by Xan » Wed Aug 05, 2020 12:19 pm

I'm befuddled. What could be the virus-related rationale to shutting people out of their safe deposit boxes??
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Re: What's going on with silver?

Post by pugchief » Wed Aug 05, 2020 12:28 pm

Xan wrote:
Wed Aug 05, 2020 12:19 pm
I'm befuddled. What could be the virus-related rationale to shutting people out of their safe deposit boxes??
To intentionally create panic? Not that I believe in conspiracy theories, but there is no other logic available to some of these edicts.
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Re: What's going on with silver?

Post by Hal » Wed Aug 05, 2020 12:56 pm

pugchief wrote:
Wed Aug 05, 2020 12:28 pm
Xan wrote:
Wed Aug 05, 2020 12:19 pm
I'm befuddled. What could be the virus-related rationale to shutting people out of their safe deposit boxes??
To intentionally create panic? Not that I believe in conspiracy theories, but there is no other logic available to some of these edicts.
If nothing else, it proves HB's advice to have your assets in different jurisdictions.
Honestly, I thought that PP advice was extreme, but it is actually very sound.

btw, only one visitor was allowed in the vault at a time, so its hardly a "social distancing" matter.
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Re: What's going on with silver?

Post by Smith1776 » Wed Aug 05, 2020 1:24 pm

Maybe the federales shut it down when they caught Mike Ehrmantraut passing a few million in gold to his granddaughter. O0
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Re: What's going on with silver?

Post by Hal » Wed Aug 05, 2020 1:53 pm

Smith1776 wrote:
Wed Aug 05, 2020 1:24 pm
Maybe the federales shut it down when they caught Mike Ehrmantraut passing a few million in gold to his granddaughter. O0
It was just one coin.... ::)
https://www.perthmint.com/1-tonne-gold-coin.aspx

Mike must have been over to Perth as well
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Re: What's going on with silver?

Post by technovelist » Wed Aug 05, 2020 4:32 pm

Hal wrote:
Wed Aug 05, 2020 12:56 pm
pugchief wrote:
Wed Aug 05, 2020 12:28 pm
Xan wrote:
Wed Aug 05, 2020 12:19 pm
I'm befuddled. What could be the virus-related rationale to shutting people out of their safe deposit boxes??
To intentionally create panic? Not that I believe in conspiracy theories, but there is no other logic available to some of these edicts.
If nothing else, it proves HB's advice to have your assets in different jurisdictions.
Honestly, I thought that PP advice was extreme, but it is actually very sound.

btw, only one visitor was allowed in the vault at a time, so its hardly a "social distancing" matter.
Apparently they can get away with almost anything if they say it's because of covid.
Yes, jurisdictional diversity is valuable.
Another nod to the most beautiful equation: e + 1 = 0
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