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Re: Will the Silver Rush Kill a Faltering Economy?

By: DueDillinger in CONSTITUTION | Recommend this post (0)
Sat, 30 Apr 11 8:25 PM | 35 view(s)
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Msg. 12983 of 21975
(This msg. is a reply to 12982 by lkorrow)

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Linda. If you don't understand the dynamics of the precious metals marketplace and haven't followed it, please don't make any assumptions based upon that limited knowledge.

The investing public has yet to turn to silver and gold in any significant way. Indeed, less than 2% of investors have physical precious metal in their portfolios. You can find full-page ads, new storefronts/mall kiosks and tv infomercials encouraging you to sell your silver/gold; taking advantage of the ignorance and desperation of the public. (Some, like the one illustrated below, are outright scams.) There is no buying frenzy and the media is planted with articles (such as you posted) postulating that the metals are peaking now.

We ain't seen nothin' yet!

About half of my holdings are shiny and heavy, and I'm slowly increasing that percentage as Bernanke takes the dollar down.

Silver is in backwardation, meaning that the spot (physical) price is higher than the price of silver futures. This is an indication of a supply shortage and is a very bullish factor.

More later...

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The above is a reply to the following message:
Re: Will the Silver Rush Kill a Faltering Economy?
By: lkorrow
in CONSTITUTION
Sat, 30 Apr 11 7:57 PM
Msg. 12982 of 21975

Due, A few years ago, when I did, I noticed a divergence from the usual inverse relationship. Seemed that was due to people investing in a safe haven during uncertain times. I couldn't say that now, since I haven't been watching gold/silver and the dollar closely, but I assume you are!


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