If Silver went up to $1500 as per Mike Maloney, who would buy your Silver?

[Robert]

Have a question for you?

Mike Maloney says Silver could go up to $1500, is thats the case a 1kg Silver bar would be around $30.000, now my question is, who would buy this? I really can't see people in ebay buying it, and if you were to have 500oz or 1000oz of Silver, thats A LOT of Silver to get rid off? who would buy your Silver?

thanks

[uncletonoose]

I believe it would be the same people that are buying gold at $1364.00 per ounce. There will always be buyers. ;D

[kregener]

If silver hits $1,500, then...IMHO....the dollar is completely toast.

The people who would...'buy'...your silver, would be those selling food, boots, clothes, toilet paper, medicine, booze, spices, tools, weapons, ammo, etc.

Or did you just buy silver to turn a profit?

[undgrd]

$1500 silver could mean $150 a loaf bread. Just keep in mind, PM's are typically acquired to MAINTAIN purchasing power...not expand it.

[Robert]

so why is Gold @1363.60 oz, and I see this going higher?

[Sparky]

If there weren't enough people to buy it at $1500, it wouldn't be at $1500.

Logical extensions of the silver price under our current monetary system would put the price range to as high as maybe $200. That is to say, we can understand what that price means in terms of purchasing power.

For example, we could assume that silver at $200 would be accompanied by significant inflation, but NOT hyperinflation. We could imagine $200 silver with the price of goods doubling. This means that silver's "purchasing power" would roughly triple. That's all within the framework of extrapolating our tenuous financial system forward, without collapse.

A price like $1500 would have to be associated with a major dislocation, i.e. an unmistakable SHTF collapse to the financial system. In that scenario, a number like $1500 loses all context. Like others have said, a loaf of bread may cost $250. Under that scenario, your silver will have LOST purchasing power, because it would only buy you 6 loaves of bread, whereas right now it buys you 12 loaves of bread. This is why in a real collapse, your other preps are what truly maintain their value. Today, 10 loafs of bread will buy you 10 loafs of bread, or an iPod. After a collapse, 10 loafs of bread will buy you 10 loafs of bread, or 2 iPods.

Try to wrap your head around this, because this is what we really mean by counting PMs in ounces and not dollars. We should really be counting them in terms of food, with has undeniable and timeless value.

[Robert]

So Mike Maloney saying "Silver could reach $1500" is prob a pile of rubbish?

I mean no one would of thought Gold would be reach $1400, so it could happen to Silver? esp with the Silver shortage.

thanks

[undgrd]

At 1400 Gold is a steal when adjusted for inflation.

[Sparky]

So Mike Maloney saying "Silver could reach $1500" is prob a pile of rubbish?

I mean no one would of thought Gold would be reach $1400, so it could happen to Silver? esp with the Silver shortage.

thanks


It means that if the price goes to $1500, we'll have no idea what $1500 will buy.

The difference with gold to $1400 is that lots of us expected that to happen without a system collapse, so that we still know what $1400 can purchase. If gold goes to $2500, I still have a good idea of what $2500 will be able to purchase. If gold goes to $50,000, I have no clue as to what $50,000 will buy. So I'd rather see gold at $2500 than at $50,000.

[Dvrumo]

Can anyone imagine us going thrugh as much inflation in the next 40 years as we have seen in the past 40? I figure in 1969 junk silver was worth face value and now 25x face? Has the world come to an end? I think we can see lots of inflation and things plug along. I would guess we will see at a mininmum the same inflation we saw in the past 40 years. The banksters want inflation (they just dont want run away inflation I believe). So, How long will it take us to go to 50x from where we are now (1500/oz), I dont know, but we will get there. It may take 50 years, but I will guess it will be much quicker.

[Robert]

I thought more than hyperinflation, the key reason for silver price to rise was associated with the fact that it is hugely undervalued compared to Gold ; and that it is expected to go up in order to bring the silver:gold ratio to an acceptable point.

[madfranks]

I thought more than hyperinflation, the key reason for silver price to rise was associated with the fact that it is hugely undervalued compared to Gold ; and that it is expected to go up in order to bring the silver:gold ratio to an acceptable point.


The historic gold to silver ratio is 1:16; so with gold at approximately $1400/oz, an "acceptable" price of silver based on this ratio would be $87.50. A price of silver at $1500 would require a massive dislocation event like Sparky mentioned above. It could happen, but if it does, the context of comparative price goes out the window. Meaning, if silver goes to $1500, who knows what everything else you want to buy will cost.

[Sparky]

I thought more than hyperinflation, the key reason for silver price to rise was associated with the fact that it is hugely undervalued compared to Gold ; and that it is expected to go up in order to bring the silver:gold ratio to an acceptable point.


This is an unsubstantiated, secondary effect.

Every time the ratio has dipped below 50 in the last 30 years, it has soared back up over 80 again. I don't see why there is some "natural" ratio. Even during this bull, it has yet to get below 40 like it did in 1998. 40-80 seems to be its "natural" range.

[Robert]

Any thoughts on this video?

http://www.youtube.com/watch?v=ckFfzoplC-I&feature=player_embedded

[Sparky]

MF, the 16:1 ratio was decreed for a while (like fiat money), but didn't hold after they let it float freely. I think it may have had some relevance to production or availability a century ago, but it seems like the supply/demand dynamics have change so much that it doesn't seem meaningful.

Having said that, I wouldn't be surprised to see as low as 30, simply because the price is more volatile in general, and will swing more to the upside during bull moves. But wake me when it gets below 40.

Same as the Dow:Gold at 1:1. I could seen 2:1, but not 1:1. Inflation also puts upward pressure on the Dow, which is indexed in constantly-devaluing dollars.

[madfranks]

Any thoughts on this video?

http://www.youtube.com/watch?v=ckFfzoplC-I&feature=player_embedded


Here's my thoughts. All that new money created to steady the financial markets is not circulating among the general public, it is all being hoarded by these same financial institutions. He bases his $15,000/oz gold price purely on those new dollars and the inflation that would result if they circulated in the economy. But since those dollars are hidden from the general economy that level of inflation is not seen. If all that money was loosed into the economy, yeah maybe gold would skyrocket, but so would everything else. In his scenario, if gold goes up 10x, so does food, fuel, etc.

[steyr_m]

$1500 silver could mean $150 a loaf bread. Just keep in mind, PM's are typically acquired to MAINTAIN purchasing power...not expand it.


What was the price of silver compared to a loaf of bread pre and during hyper-inflation Germany?

[Robert]

this may help?

Also, if you look at this video and skip to 20:57, he explains the "before and after" the Germany issue