The Silver Price-spiral, Part I: today

[skidmark]

Already posted by Large Sarge.....

http://gold-silver.us/forum/silver/the-silver-price-spiral/

[Defender]

Part 2 is now up:
Link to Part 2 (http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=11302:the-silver-price-spiral-part-ii-paper-qinventoriesq&catid=49:silver-commentary&Itemid=130)


EDIT: Changed long link to named link to prevent horizontal scrolling. -Gaillo

[jedemdasseine]

Thanks. I had missed this article in my quixotic quest to read everything ever written about gold and silver.
:)

[GOD]

sell in may and go away, for a little while.

[Plastic]

Part 3 for your reading pleasure. :P


http://www.silverbearcafe.com/private/05.10/tomorrow.html

[gunDriller]

"As I stated at the beginning of this series, a "three-digit price" for silver is assured, while over the long term, that price could rise close to, or above the $1000/oz-mark...but I am getting ahead of myself. This series is all about studying the dynamics of the silver market, so what I will focus on is what we can expect to happen in the silver market (on the demand side) as silver rises to, and then above $100/oz."

the question is, what happens to the other prices - how much is bread and gasoline, when silver is $100 an ounce ?

i'll take a shot at it - bread is $10 a loaf when silver is $100 an ounce. a silver/bread ratio or 10.

today, the silver/bread ratio is about 6 ($18 for silver, $3 for a 24 ounce loaf of healthy bread, whole wheat, etc.).

this is purely a guessing exercise, but i think silver will outpace inflation during some parts of its price appreciation.

[Plastic]

Dunno gunDriller, a while back on GIM1 somebody well known posted that prices for normal things do not have to skyrocket with the metals. I hope that is the case too as I'd love to trade my metals for land at ohhhhhh... sayyyyy.... 1 silver ounce an acre... Which ironically is the exact same price the Gov't sold land aquired from the Louisiana purchase (which they purchased for pennies) to us regular folks, well specifically 1.25 in silver coin per acre which is close enough imo. ;D