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SurvivalGround >> Price of Silver.


4/6/11 4:48 PM
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jaywill
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 hhmm, read an old article in 2008  stated that the silver market is so small, 13 billion  dollars annually , that if even .1% of money in peoples banks moved to silver it would shoot the price up to 200 per ounce at least.
4/6/11 11:32 PM
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MoreThanUFC
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 No budget deal.  For those of you that arent member of the National Inflation Association, I will try to remember to post their relevant article here.
Tonight's article.
The Federal Reserve Must Implement QE3
Gold prices surged today to a new all time high of $1,463.70 per ounce, while silver prices soared to a new 31-year high of $39.785 per ounce. Silver is now up 129% since NIA declared silver the best investment for the next decade on December 11th, 2009, at $17.40 per ounce. The gold/silver ratio is now down to 37, compared to a gold/silver ratio of 66 when NIA declared silver the best investment for the next decade. This means that not only is silver up 129% in terms of dollars since December 11th, 2009, but silver has also increased in purchasing power by 1.78X in terms of gold.
Gold is the world's most stable asset and the best gauge of inflation. This brand new breakout in the price of gold leads us to believe that the Federal Reserve is getting ready to unleash QE3 at the end of June. The Fed will surely not call it QE3, but NIA can pretty much guarantee that the Fed will continue on with their purchases of U.S. treasuries. If the Fed pauses after QE2, it will mean that treasury bond yields will need to surge to a level where they attract enough private sector and foreign central bank buyers in order to not only support the funding of our rapidly rising budget deficits, but to support the redemption of maturing treasury securities.
In the month of March, the U.S. government spent more than eight times its monthly tax receipts, when you include the money spent for maturing U.S. treasuries. The U.S. treasury netted $128.18 billion in tax receipts during the month of March, but paid out a total of $1.05 trillion, which included $49.8 billion in Social Security benefits, $47.4 billion in Medicare benefits, $22.58 billion in Medicaid benefits, and $37.9 billion in defense spending. However, by far, the U.S. paid out the most for maturing U.S. treasuries, which equaled $705.3 billion.
In order for the U.S. government to stay afloat with only $128.18 billion in tax receipts, it had to spend $72.5 billion from its balance of cash, which ended the month at $118.1 billion, and sell $18 billion worth of TARP assets. But most importantly, the U.S. treasury had to sell $786.5 billion in new treasury bonds.
The U.S. government is the largest ponzi scheme in world history. We can only fund our government expenditures and pay off maturing debt plus interest, by issuing larger amounts of new debt. Americans are lucky that we have been blessed with record low interest rates for an unprecedented amount of time, but NIA believes that as we roll over U.S. treasuries in the future, we will have to refinance them at much higher interest rates. Our national debt is now so large that interest payments on our debt will become the government's largest monthly expenditure.
If the Federal Reserve doesn't implement QE3, NIA believes it will just about guarantee a bursting of the U.S. bond bubble in the second half of 2011. If the Fed stops buying U.S. treasuries, there is a chance that we won't find foreign buyers for our bonds no matter how high interest rates rise. The world is waking up to the fact that the U.S. government is insolvent, and the benefits of propping up the U.S. dollar are no longer worth the expense to our foreign creditors. The U.S. government ponzi scheme will soon be exposed for the world to see.
Japan has been the most consistent buyer of U.S. treasuries. With Japan needing to raise $300 billion to rebuild parts of their country that were destroyed by the earthquake, tsunami, and nuclear disaster, we believe they will be forced to dump their U.S. treasuries, at a time when the U.S. desperately needs Japan to roll over their treasuries into larger amounts of new ones. Not only that, but with Arab revolutions taking place across major Saudi states and the U.S. beginning to occupy Libya for no reason at all, we will likely see Gulf states follow in Japan's footsteps and stop purchasing/dump U.S. treasuries. Plus, China appears to be becoming more reluctant to continue buying U.S. treasuries, and is positioning the yuan to be the world's new reserve currency. Without Japan, Saudi states, and China, there will be no buyers left for U.S. government bonds.
The fact is, with no QE3, we could literally see the 10-year bond yield double from 3.52% to north of 7%, overnight. Even then, it is unlikely to attract foreign buyers and we will likely be faced with failing bond auctions, which would cause a massive rush out of the U.S. dollar and trigger the currency crisis NIA has been predicting. NIA sees no other option for the Fed, but for it to continue on with its endless money printing and destructive inflationary policies.
 
 
4/6/11 11:32 PM
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MoreThanUFC
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Federal Reserve officials discussed last month in closed-door meetings the possibility that rising commodity prices could cause inflation. The fact is, rising commodity prices don't cause inflation, they are a symptom of inflation. When the Fed leaves interest rates at 0% for over two years and prints $600 billion as part of QE2, that money printing and easy money is the inflation of our money supply, and rising prices are the result.
The Fed is narrow-minded and continues to focus on the CPI, which only grew last month by 2.11% year-over-year. Fed Chairman Ben Bernanke says he expects rising commodity prices to create a “transitory” boost in U.S. inflation. Meaning, when the CPI rises even higher in the upcoming months, Bernanke will likely place the blame on what he considers to be temporarily high oil and soft commodity prices.
The CEO of Wal-Mart is now saying that U.S. inflation is “going to be very serious” and that Wal-Mart is already seeing “cost increases starting to come through at a pretty rapid rate.” He predicts that because of huge increases in raw material costs, along with soaring labor costs in China, and skyrocketing fuel costs around the world, retail prices will start increasing at Wal-Mart and all of their competitors in June, especially for clothing and food.
When asked about the predictions of Wal-Mart's CEO, Bernanke said that he expects price pressures to remain largely stable, but then added, "Wal-Mart has more data than the government does." Bernanke was also quoted as saying, "We have to monitor inflation and inflation expectations extremely closely because if my assumptions prove not to be correct, then we would certainly have to respond to that and ensure that we maintain price stability.”
The European Central Bank (ECB) is expected to raise interest rates tomorrow for the first time since 2008. Many people are now speculating that the Federal Reserve will begin raising the Federal Funds Rate at the end of 2011. NIA is receiving many new 'NIAnswers' and email questions on a daily basis, asking us what will happen to gold and silver prices if the Federal Reserve were to raise interest rates.
In our opinion, the Federal Reserve raising the Fed Funds Rate would actually be very bullish for gold and silver prices, because it will serve as an admission that even the Fed believes inflation is becoming a major problem and beginning to spiral out of control. Historically, the best performing time period for precious metals has been when the Fed begins to raise artificially low rates. Remember, when the Fed begins to raise rates, they will probably raise rates only 1/4 or possibly 1/2 of a percentage point at a time. Interest rates of 1% or 2%, although higher than 0%, are still artificially low and will do nothing to curtail inflation. NIA believes the real rate of U.S. price inflation is now 6% and we will need to see the Fed Funds Rate rise to a level that is higher than the real rate of price inflation, if the Fed wants to have any hope of preventing hyperinflation.
4/8/11 10:19 AM
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MoreThanUFC
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 We are now over $40 per oz.
4/9/11 11:24 AM
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AG_bull
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hagarules - 
AG_bull - 
MoreThanUFC -  Pushing $39 as I type.  If a budget deal is reached that is more than another CR, I think we might see a serious pullback to $33 or so.  I'm gonna sell my SLV ETF if we hit $40 and I start to hear of a deal.  Then I'll rebuy.  The physical silver is long term storage for me.


A deal will be made at the last minute ... one side will cave.

Just think, nothing has fundamentally changed with the system. There is going to be a major deficit still ... a couple billion isn't going to make much of an impact.

i hardly think this will mean a 15% pull back to $33, currently silver is on the verge of breaking $40 which will probably bring some resistance but i figure we will bounce around $40 (+/- $3) for the next 3 months.


I agree


Hey MoreThanUFC looks like we saw huh :D

to be honest I started to doubt that it was going to happen at the last minute there.

As for silver its back on the rise ... i expect it to float around up to $43 then we might see a pull back down to 37ish (same thing happened when we broke 30's).

Then again i could be wrong ... silver might just keep marching all the way up to 50+ ... i expect to see 50 some time this year but figured it would be after summer. Christmas might come early though, who know's ... point is KEEP HOLDING ON!!!
4/9/11 11:57 AM
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MoreThanUFC
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 Silver Bull, that was no budget deal.  That was a cave.  They "cut" from an increase... fucking politicians.  I dont thing the market will react very favorably to this come Mon.  In fact, I think this deal was reached earlier in the week, but they chose Fri after the markets closed so as to not cause complete chaos.

Any ideas of what you think we might see on Monday?
4/10/11 9:54 AM
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AG_bull
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MoreThanUFC -  Silver Bull, that was no budget deal.  That was a cave.  They "cut" from an increase... fucking politicians.  I dont thing the market will react very favorably to this come Mon.  In fact, I think this deal was reached earlier in the week, but they chose Fri after the markets closed so as to not cause complete chaos.

Any ideas of what you think we might see on Monday?


I agree with you, the deal was nothing more than just one side caving ... total spending cuts less than 1% of what is needed.

But the average joe isnt going to understand that ... they will see it as a "WIN" for their party (both sides will be claiming to have won). I expect the market to bounce back a little and PM's to go down slightly.

Im just guessing at this point and dont really care what happens short term as i know this hasnt really changed anything. The system is past the tipping point and the music cant play on forever.
4/14/11 9:52 PM
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kanotoa
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Heineken Man - Go to wwww.silverkeiser.com and pick up a Silver Liberation Army t-shirt and a silver keiser round.


LOL @ that ugly round for that premium. I respect the man for his efforts though.
4/16/11 11:10 AM
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MoreThanUFC
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Edited: 04/16/11 2:37 PM
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 I made a ton of money ( in my little world, a ton is a few thousand ) on NUSMF on Thurs/Fri.  You guys really need to join the NIA.

Unfortunately, I dont have enough funds in my etrade account to qualify for day trading, so my buying on dips, and selling on peaks got me suspended for 90 days.....  I am gonna try and call them to see if they can lift the suspension.

If a debt ceiling compromise is reached before QE3 is announced, I see a big pullback on silver.  Then buy, and wait for QE3.  Any better ideas out there, gents? 
4/16/11 5:07 PM
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AG_bull
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MoreThanUFC -  I made a ton of money ( in my little world, a ton is a few thousand ) on NUSMF on Thurs/Fri.  You guys really need to join the NIA.

Unfortunately, I dont have enough funds in my etrade account to qualify for day trading, so my buying on dips, and selling on peaks got me suspended for 90 days.....  I am gonna try and call them to see if they can lift the suspension.

If a debt ceiling compromise is reached before QE3 is announced, I see a big pullback on silver.  Then buy, and wait for QE3.  Any better ideas out there, gents? 



sounds like a decent plan to me. At the rate things are going QE3 is inevitable but im not sure if it will happen in june/july or not. they might let the economy try to stand on its own feet. as for who will buy the debt? i dont know ... but my feel is they want to try and avoid QE3 (only to need it later).

personally i dont do alot of trading, i find that im not great at trying to time these things and would rather just pick long term inverstments and hold.

why did etrade lock your account for buying/selling? isnt that the point? what did you do wrong? never heard of that before.
4/17/11 3:37 PM
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MoreThanUFC
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Edited: 04/17/11 3:37 PM
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 I am waiting on their answer, but I can go get the actual language they used.... hang on....

Fri Apr 15 15:04:50 2011 Notice of 90-Day Restriction

 

 

  Due to the sale of a security that had not yet been fully paid for, your account has been restricted to settled, cash-only transactions for 90 days. During this period, you can use only fully settled funds to pay for trades.

Account ending in: < XXXX-XX09 >
Restriction type: Free riding in cash account
 
 
4/18/11 7:16 PM
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MoreThanUFC
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 On the Nucleo exchange, there is one 100oz bar and 1 10 oz bar for sale at normal pricing.  The rest of the bars for sale are all in the +20% range.  What does that tell you?  No one is selling. 
4/18/11 7:17 PM
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MoreThanUFC
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Edited: 04/18/11 7:16 PM
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 Shitty website.
4/18/11 7:20 PM
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jaywill
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 S%P gave US anegative rating.  Stocks tumble and pm's up. here we go again .
4/20/11 6:39 AM
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MoreThanUFC
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 $50 by next Wed. 
4/22/11 12:40 PM
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kanotoa
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I'm watching the gold/silver ratio. I'm getting ready to start swapping for gold when the ratio drops to bellow 25.
4/22/11 12:41 PM
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kanotoa
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Why was zguards silver thread removed?
4/23/11 7:37 PM
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MoreThanUFC
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kanotoa - Why was zguards silver thread removed?

 I think a mod deleted a bunch of Z's threads. 
4/25/11 8:07 AM
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AG_bull
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MoreThanUFC -  $50 by next Wed. 



looks like it might be $50 by today EOD :D
4/27/11 6:07 PM
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MoreThanUFC
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 Holy shit.  SLV up 2.97 in a single day on the heaviest volume in history for the ETF.
4/27/11 6:46 PM
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kanotoa
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I wish I had bought more last year. could have got a monster box for under 10K
4/28/11 12:16 AM
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MoreThanUFC
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 Go to zerohedge.  Tyler has some interesting info on runs of physical silver being quieted.
4/28/11 11:58 AM
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MoreThanUFC
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 May contracts up $3.15 to start the day.
4/29/11 1:30 PM
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MoreThanUFC
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 Lots of stops being hit yesterday and today.  I think when the high $40 stops run out, our next barrier is $53 or $54.
5/4/11 11:06 PM
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Ham and Egger
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Everyone ok? Whats the plan, buy more physical at the next dip?

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