What's the deal with silver prices?

Woah! I looked away for a few days, and I see that silver coin prices
are sitting at $12.11/oz. - over $2.00 less than the last time I looked!
What the hell???

Is silver back on the downturn? Did I miss my chance at fortune and
fame, when it was over $14.00? Or, is this just a temporary correction,
only to last a week?

I WAS planning on selling about 1/2 of my junk silver once it got into
the $15.00 range. Then, I'd hold the rest until it topped $20.00, which
I was hoping would be in December. Right now, it's looking like it's
going back down to the $5.00-$6.00 I got it for.

Crazy, man! Just crazy!

--
Eric Babula
Milwaukee, Wisconsin, USA

On 19 May 2006 17:43:35 GMT, Eric Babula wrote:
Woah! I looked away for a few days, and I see that silver coin prices
are sitting at $12.11/oz. - over $2.00 less than the last time I looked!
What the hell???

Sorry, that was me, I bought that 10 ounce bar from that friend of mine.

Is silver back on the downturn? Did I miss my chance at fortune and
fame, when it was over $14.00? Or, is this just a temporary correction,
only to last a week?

Who knows. I'm going to keep buying, it's on sale right now way I see
it, so I can buy more with what I spend than I could have 2 weeks ago.

I WAS planning on selling about 1/2 of my junk silver once it got into
the $15.00 range. Then, I'd hold the rest until it topped $20.00, which
I was hoping would be in December. Right now, it's looking like it's
going back down to the $5.00-$6.00 I got it for.

If you want to sell it locally, please keep me in mind.

Crazy, man! Just crazy!

Well, it is all just legal gambling after all. Just like the stock
market. As long as the coins bring you joy, does it really matter if
you lose money when you sell, or don't make as much as you could have
during a peak? As someone else said here the other day, it's the fun of
getting the stuff, and as far as the price goes, a rollercoaster ride is
always fun.

End of the day, I've still got the same shiny discs of metal that I had
when it started, regardless of what they'd be worth if I sold them.

On 19 May 2006 17:43:35 GMT, Eric Babula wrote:

Or, is this just a temporary correction,
only to last a week?

Don't know how long it will last (probably longer than a week), but I
do believe it is temporary. Once gold went past $700, profit taking
probably kicked in -- with silver and other metals as well, AFAICS.

I won't get worried until gold drops below $600. A year ago, who'd
have thought it would get that high? Remember when everyone was
cheering silver on to finally get to $10?

Long-term, as I see it, a lot will depend on these things and drive
the price of gold, silver and other metals:

(a) oil prices
(b) situation with Iran
(c) situation with Iraq
(d) situation with North Korea
(e) the Euro and the Swiss Franc vs. the dollar
(f) U.S. election results in 2008
(g) whether China and other Asian countries decide to shift their
foreign currency reserves from dollars to euros, gold, or other things
(pig bellies, maybe? I heard there are an awful lot of pigs in
China...)
(h) natural calamaties (hurricanes, tsunamis, volcanos, etc.)

Except for (h), all of these are interrelated, of course. But NONE of
them look any good for the price of the dollar vs. other currencies,
and vs. precious metals, because people have finally gotten the
message and have started to hoard. I think even (f) will not have much
effect on things, at least not immediately. Too much stuff to clean up
after the present admin. is done, IMHO.

--
Bob Hairgrove

I have a couple rolls of common date circ. mercury dimes and a roll of
war nickels.

Had not even thought of selling them but now I kind of wish I had done
it a few
weeks ago. Looks like I missed the boat for the time being. Ah well,
no big deal
as we are not talking about a fortune here anyway.

On Sat, 20 May 2006 00:35:15 GMT, in (e) wrote:

In article . com, "stonej" wrote:


I have a couple rolls of common date circ. mercury dimes and a roll of
war nickels.

Had not even thought of selling them but now I kind of wish I had done
it a few
weeks ago. Looks like I missed the boat for the time being. Ah well,
no big deal
as we are not talking about a fortune here anyway.

try sitting on a bag of halves...even 40%ers.

Or 30 pounds in mixed circ coins ... after eliminating 'stuff' you
don't want to part with. Missed that crest, but got my fingers
crossed that the trend is still upward.

The metal markets have been `talked down' by the so called experts.
There is no doubt that this has helped cool the market at a time when
there was profit taking going on. People see a fall, followed by some
smart looking dudes saying `it was just a bubble anyway' and the market
cools off .........temporarily that is until the smarts can absorb the
slack and off the prices go upwards again.

The story being punted about is that the demand in the far east is based
on rising demand of 20% per annum which is unsustainable year in year
out, and that it will level off much the same time as production
increases to match demand.

Now lemme see..... That would be around two three years from now at the
VERY earliest. In the meantime all the underlying conditions that caused
the hiking of prices remain. Make of it what you will.

Bob Hairgrove wrote:

On 19 May 2006 17:43:35 GMT, Eric Babula wrote:


Or, is this just a temporary correction,
only to last a week?


Don't know how long it will last (probably longer than a week), but I
do believe it is temporary. Once gold went past $700, profit taking
probably kicked in -- with silver and other metals as well, AFAICS.

I won't get worried until gold drops below $600. A year ago, who'd
have thought it would get that high? Remember when everyone was
cheering silver on to finally get to $10?

Long-term, as I see it, a lot will depend on these things and drive
the price of gold, silver and other metals:

(a) oil prices
(b) situation with Iran
(c) situation with Iraq
(d) situation with North Korea
(e) the Euro and the Swiss Franc vs. the dollar
(f) U.S. election results in 2008
(g) whether China and other Asian countries decide to shift their
foreign currency reserves from dollars to euros, gold, or other things
(pig bellies, maybe? I heard there are an awful lot of pigs in
China...)
(h) natural calamaties (hurricanes, tsunamis, volcanos, etc.)

Except for (h), all of these are interrelated, of course. But NONE of
them look any good for the price of the dollar vs. other currencies,
and vs. precious metals, because people have finally gotten the
message and have started to hoard. I think even (f) will not have much
effect on things, at least not immediately. Too much stuff to clean up
after the present admin. is done, IMHO.

--
Bob Hairgrove

The part I don't understand is that precious metals are supposed to be
a hedge against inflation. Well, the stock market was in free-fall this
week because of inflationary warnings, but precious metals tumbled as
well. I would think that if the economy is going down that silver and
gold would go up. I am no genius, perhaps someone can explain this to
me.

"Eric Babula" wrote in message
0...
Woah! I looked away for a few days, and I see that silver coin prices
are sitting at $12.11/oz. - over $2.00 less than the last time I looked!
What the hell???

Is silver back on the downturn? Did I miss my chance at fortune and
fame, when it was over $14.00? Or, is this just a temporary correction,
only to last a week?

I WAS planning on selling about 1/2 of my junk silver once it got into
the $15.00 range. Then, I'd hold the rest until it topped $20.00, which
I was hoping would be in December. Right now, it's looking like it's
going back down to the $5.00-$6.00 I got it for.

Crazy, man! Just crazy!

--
Eric Babula
Milwaukee, Wisconsin, USA

The mark of a true bull market, as opposed to a temporary spike in prices,
are periodic corrections. The metals markets, being thinly traded (compared
to most financial markets) are subject to rather large violent swings in
price. Since the basis for the previous rises in metals prices i.e.
inflationary pressures, increasing commodity demand, and a falling dollar
are still very much alive, I think this is a bull market correction and the
upward climb will continue after a period of consolidation.

John

Visit the RCCers favorite coins web page
http://mysite.verizon.net/jcarney44/coins/rccers.html

"John Carney" wrote in message
news:ECHbg.855$nA2.134@trndny01...
"Eric Babula" wrote in message
0...
Woah! I looked away for a few days, and I see that silver coin prices
are sitting at $12.11/oz. - over $2.00 less than the last time I looked!
What the hell???

Is silver back on the downturn? Did I miss my chance at fortune and
fame, when it was over $14.00? Or, is this just a temporary correction,
only to last a week?

I WAS planning on selling about 1/2 of my junk silver once it got into
the $15.00 range. Then, I'd hold the rest until it topped $20.00, which
I was hoping would be in December. Right now, it's looking like it's
going back down to the $5.00-$6.00 I got it for.

Crazy, man! Just crazy!

--
Eric Babula
Milwaukee, Wisconsin, USA

The mark of a true bull market, as opposed to a temporary spike in prices,
are periodic corrections. The metals markets, being thinly traded
(compared
to most financial markets) are subject to rather large violent swings in
price. Since the basis for the previous rises in metals prices i.e.
inflationary pressures, increasing commodity demand, and a falling dollar
are still very much alive, I think this is a bull market correction and
the
upward climb will continue after a period of consolidation.

John

Visit the RCCers favorite coins web page
http://mysite.verizon.net/jcarney44/coins/rccers.html

Yep--market correction--like everything has dropped right along with oil
prices. Stocks really dropped as well--there's very few places to hide when
this kind of drop happens across the board. It's all from fears of
continuing Fed rate hikes due to wanting to keep inflation in check. Tuesday
they had a report that showed signs of higher inflation so they all reacted
to that. And there's also fears of a continued weak dollar.
So whoever is not a scardy-cat is probably raking in the dough right now.

Good question. Been two days, and no one did yet!

"Jud" wrote in message
oups.com...
The part I don't understand is that precious metals are supposed to be
a hedge against inflation. Well, the stock market was in free-fall this
week because of inflationary warnings, but precious metals tumbled as
well. I would think that if the economy is going down that silver and
gold would go up. I am no genius, perhaps someone can explain this to
me.