silver is a tiny market. Round about 1 billion oz are available. And of course not all for sale. But lets assume they are thats 30billion USD. Its a tiny market and as such is likley to be volitile. Silver like gold (to a lesser degree) has historically been a monetary metal. Currently people dont see it they way they see it like gold. Its still industrial to most people. But silver, like gold is a monetary metal. Its is a story of value like gold. This I know is not a commonly held view (yet) I say its a buy becuase like gold there is no counterparty with the physical metal. As more people realise this more people will be drawn into the tiny silver market (look how fast it went up to 50, totally unsustainable but thats what happens when money flows into a small market) Its been sold off from 50 to 32, to 42 to 28. Could it go lower, sure just look at 2008 for how big silver can move. But going forward its got industrial uses as well as investment demand. I think its got better upside potential than gold. Can it go lower? Of course. I saw 35 as the downside target and 1600 for gold. Was way off there. However lets talk in 3-6 months and once the panic has susbided and the margin calls dealt with the uptrend will resume. Simon, USD 8? I say unlikely but I said that about gold under 1600. If you want the universe to laugh tell it your plans and all that. The key here is the lack of counterparty risk with holding gold/silver. When banks start failing and govs start to default what would you rather hold. Thats my reasoning.
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