silver price nearly at £10 per ounce

Discussion in 'Economics' started by morganist, Sep 7, 2009.

  1. before you move this to precious metals. the point i am making is economic. if the silver price has risen that much and is about to go over the £10 per ounce mark is it a sign the currency market is of concern.

    it is something you might want to watch over the next couple of weeks. there are other reasons why the price has risen china is buying but that news hit the market a few months ago.
     
  2. I'm not saying you are wrong, but your statement implies a causal link that you do not make. Would you care to explain why it is that silver over that price implies a currency shock of some sort?
     
  3. if there is a problem with the money supply it can create inflation or deflation. if that happens it increases the value of precious metals because they are finite and do not depreciate with inflation or deflation.

    it makes me wonder if the price of silver is rising is it due to concerns of the stability of the currency.

    in relation to the £10 per ounce mark i am implying it could be a psychological thing if it is broken. last time the silver price was that high it went much higher.
     
  4. this is the silver chart for the last five years. notice a little over a year ago when silver hit the $16 mark it rose to the $20 mark very quickly. the same trend could be happening again. it is at that same point.

    http://www.silverseek.com/quotes/5silver.php

    i know a lot of the reason for the rise was down to the exchange problems and the dollar. however i think it will rise over the next few months. perhaps i am just optimistic but i thought i would share.
     
  5. Pascal

    Pascal

    Silver and Gold are pure instruments of speculation at this point. As long as they are not used as reserve for currency systems, they are bubble prone, and cannot be used as much else than momentum trades.
     
  6. [​IMG]
     
  7. I respect your macro views. But on this, not so sure.

    If Gold or Silver were a bubble, it would have burst along with the commodities. It didn't. Stayed close to all-time highs the entire dollar/equity/commodity crash. Gold is a few dollars short of 1K. The market is telegraphing likelihood of big inflation. M1, Bernacke and scripted policy confirm.

    Yea, over 98% of futures are cash-settled = purely speculative. But all that speculation is driven by long-term macro trends. My 2 cents.
     
  8. Isnt it funny how the pound sterling is named after silver. 100s of years ago 1 pound sterling was worth 1 pound of silver.
     
  9. peil my old friend how are you?

    did you look at those tribbett videos yet.
     
  10. Silver just broke 10 pounds per oz. $16.40 per oz here in the states now with a 1.634 exchange rate as of 5:49pm Pacific time
     
    #10     Sep 7, 2009