Where is the price of Silver going?

[Big Frank]

That's what my EKG looked like. 

[Solus]

Well, I can try a little.  

Those funny looking symbols are called candlesticks because that tend to look like them.  I believe they are a notation developed by the Chinese many many years ago to track the prices of certain commodities.

Each candlestick represents what happened to the price of that commodity on one day.

The top or bottom of the candlestick represents the opening or closing price.  If the candlestick is red (or solid) that indicates the closing price was lower than the opening price.  

So, on a red candlestick, the opening price is at the top while the closing price is at the bottom.  On a white candlestick, the opening price is the bottom and the closing is the top.

You will notice there are lines that can stick out of the top or bottom or both ends of the candlestick (on the top, they would look like the wick of the candle).

These represent the high or low price of the commodity on that day.  

If the commodity opened/closed at the high/low price, there will not be a wick at that end of the candlestick.

The blue line that somewhat follows the course of the candlesticks is the Moving Average line.   It is the average of the prices over the past specified number of days.  By the notation in the upper left, you can see it is a 50 day moving average  MA(50).

Investors tend to feel it is a good thing when the price moves above that line and might indicate an upward trend is growing strong.  The reverse when it drops below that iine.

The red line somewhat below the blue line is marked as MA(200) so that would be the 200 day moving average.

Guys who have done much analysis  think  MAs of certain  numbers of days are more meaningful.  I have no idea what they base that on.

The MACD part of the graph is the Moving Average Convergence/Divergence plot.

It is thought to be a good thing if the markers are moving above the line and a bad thing if they are moving below.

The bar graph under the candlesticks indicates the volume of the trading for that day.  It is listed so you don't go nuts with the fluctuations if there were only a small handfull if the item  traded that day.

Well, that is about all I know about this.  Wish I could tell you exactly when all this was lined up indicating you should buy or sell, but if I could do that with accuracy, the Barretts and ammo would be on me.

Good luck and take care

[crusader rabbit]

Commodities represent real value.  That value remains essentially unchanged over time.  A bag of wheat is worth what a bag of wheat is worth...  except when someone really wants to bake some bread.  Then, that person will pay more for the bag.  That's called market fluctuation.

Gold and silver are the same sort of commodity--from a monetary perspective--as wheat.  They have actual, essentially unchanging value.  The dollar on the other hand is currency by fiat.  That means it has value because the government says it has value.  In reality, a dollar is simply a piece of fairly good quality paper with essentially no real value--like an expired coupon.  However, because we have all agreed to exchange these bits of paper for real goods and services, those bits of paper do have an accepted value. 

But that value is diminishing, day by day.

Look at real products like oats, corn, petroleum, steel and the like.  In the past two years, the cost (in dollars) of these items has increased by something around 80%.  That is not because these items are in short supply or because they are actually worth more, but rather because the dollar is worth less. That called inflation

In the short term, gold and silver will appear to fluctuate against the dollar, so these items are not for the faint hearted investor who still thinks in terms of valuable dollars.  In the longer term, it will take more and more dollars to purchase them, so the perception of value will be increased as a direct result of a devalued dollar.

The dollar has diminishing value--that is a simple fact.  As a government, or society, or civilization, we cannot stop that--that is also a simple fact. It is currency by fiat, or money because we say it is money.  But the FED is printing the stuff by the truckload and that makes every existing dollar worth less today than it was yesterday.  That is called inflation.  And at this point, it can only get worse.

Gold and silver represent real value because they are real, lasting, and in limited supply.  We can't print gold or silver.

If you need some walking around money, sell small amounts of your hoard of gold or silver.  Then, buy .22 LR cartridges by the caseload.  And stock up on beans and rice and rice and beans.  I believe we will live to see the day of hyper-inflation when the dollar has about the same value as a Reichsmark after Hitler's fall.   It'll take a wheelbarrow full to buy a loaf of bread.

Or, you can move to la-la land and room with the Quaker and ride your unicorn to the gin-filled lake lined with sandwich trees and roast beef bushes.

[Rastus]

US Coins made after 1964 are only worth face value, Dimes, quarters, Half, and whole dollars made before then are worth their weight in silver. Pennies made before 90 (I think, not sure of the date ) are worth their weight in copper,.
The nickle is the only US Coin that still has actual value since it is the only one still made of a pure metal, they are worth their weight in nickle.

Not exactly true.  1/2 dollars to '76 are 40% silver.  Pennies changed over in 1982, some are copper some are zinc. 

For 1964 and earlier silver coins the conversion to bullion value is: 0.72 x silver price = face value multiple.  For instance, at $10/ounce the multiple would be 7.2 for a silver coin a dime being worth 72 cents, a silver dollar being worth $7.20 and so on.  Some people drift it to 0.718 or .719 times bullion price.

This runup above say $30 +/- was due to changes in margin requirements.  Maybe over $24 or so.  Anyway, the legislation in the healthcare bill or some bill at the same time required banks to back more of the silver ponzi schemes in March 2011 so...there you go.  Saw this coming and was a buyer through about $27.  Having enough to buy medicine for 6 mos. or so is just good insurance in planning for for a meltdown of fiat currency.

This thing is looking like a leadup to the Weimar Republic via Argentina-type practices.  Maybe the government will get it under control....if they do I would say this is the last financial cycle they will have restraint in and the next big downturn will sink us. 

In the late 90's anyone with 1/2 a brain who was watching could see this was coming.  Legislation was changed so that the banks would no longer exlude borrowers due to "racist" lending policies as pushed by members of Congress with Barney Frank one of the leaders of the charge.  We had just, a decade before, come off a huge banking scandal.....memories are short and greed of politicians and powerlust of policitians know no bounds. 

It's all there in the history and on the web....look it up for yourself.  Inflation is a backdoor tax on working people...it's how nations pay the debt they can't afford.  If the runup in inflation is huge...where we are heading, nations will call in the currency at a reverse exchange rate....check out Austria after WWII as a good example.  Austria had a 10 or 11 to one reverse split on marks...however people were limited to redeem only as much as could buy 100 new marks per person....all that other money they had in paper, bank accounts in ledgers, etc....went poof...another way governments get themselves out of a bind on the backs of working people.

SOMEONE PLEASE SAY IT ISN'T TRUE ABOUT THE WEIMAR REPUBLIC PROCESS.   Someone here will probably nitpick some detail of my recollection to five decimal points to say it ain't so.....  So if/when financial collapse happens, good luck to you whoever you are.

[Timothy]

I have a new quarter that QC missed I found yesterday.  It has no cladding on it, it looks like a penny colored quarter.

Anyone have a clue who or how to get it appraised?  It's my understanding that these coins can be highly collectable.

[Sponsor]

[Pathfinder]

It's all there in the history and on the web....look it up for yourself.  Inflation is a backdoor tax on working people...it's how nations pay the debt they can't afford.  If the runup in inflation is huge...where we are heading, nations will call in the currency at a reverse exchange rate....check out Austria after WWII as a good example.  Austria had a 10 or 11 to one reverse split on marks...however people were limited to redeem only as much as could buy 100 new marks per person....all that other money they had in paper, bank accounts in ledgers, etc....went poof...another way governments get themselves out of a bind on the backs of working people.

SOMEONE PLEASE SAY IT ISN'T TRUE ABOUT THE WEIMAR REPUBLIC PROCESS.   Someone here will probably nitpick some detail of my recollection to five decimal points to say it ain't so.....  So if/when financial collapse happens, good luck to you whoever you are.

It's also how people like Soros and the ones he covers for transfer our wealth to them.

As for the Weimar and Argentina corollaries, sorry, Rastus, can't help ease your mind on this point. All I can do is relay my sense that - scary as it is - we are definitely in the season of the Second Coming, and things appear to be on plan. But since we can't know the hour, we prep to protect ourselves and our loved ones around us until then, and put our faith where it needs to be.

[david86440]

Silver went from $48 last week down to $35.64 this week.

Does anyones opinion change? Buy, sell, hold?

[fightingquaker13]

Look crusader has it slighly wrong. The only "fixed price, or real value" for commodities is the cost of production. Every thing else is percieved or market value. How many dollars am I willing to trade for an ounce of silver? If my perception of the economy is good and I have faith in the dollar is high, I'll trade fewer dollars for it than if I think the dollar will tank. Its not too different then houses. Homse that lost half their value in the last five years are the same house. Its the percieved value that has shifted. Gold and silver are ultimately not that much dififferent than dollars or wheat in that they are worth exactly what someone is willing to pay you for them on any given day. The diference between dollars and silver is a near universal consensus that silver is a more permenant store of value than the dollar. Still, this shifts according to industrial demands and the state of the economy. You couldn't give silver away in the '90s. Now it is going strong. But the fact that the price has declined is simply a function of a glut on the market. Fewer peope want it now than did six months ago. Don't think there is anything "magic" about precious metals. They will almost never become worthless, but their day to day value can shift radically. They are an iffy investment, but a good reserve.
FQ13 

[Pathfinder]

Silver went from $48 last week down to $35.64 this week.

Does anyones opinion change? Buy, sell, hold?

Buy more, discount pricing! 

[Pathfinder]

Look crusader has it slighly wrong. The only "fixed price, or real value" for commodities is the cost of production. Every thing else is percieved or market value. How many dollars am I willing to trade for an ounce of silver? If my perception of the economy is good and I have faith in the dollar is high, I'll trade fewer dollars for it than if I think the dollar will tank. Its not too different then houses. Homse that lost half their value in the last five years are the same house. Its the percieved value that has shifted. Gold and silver are ultimately not that much dififferent than dollars or wheat in that they are worth exactly what someone is willing to pay you for them on any given day. The diference between dollars and silver is a near universal consensus that silver is a more permenant store of value than the dollar. Still, this shifts according to industrial demands and the state of the economy. You couldn't give silver away in the '90s. Now it is going strong. But the fact that the price has declined is simply a function of a glut on the market. Fewer peope want it now than did six months ago. Don't think there is anything "magic" about precious metals. They will almost never become worthless, but their day to day value can shift radically. They are an iffy investment, but a good reserve.
FQ13  

And why is there a glut on the market? Because wankers have sold lots of it when the price run-up had hit a pre-defined maximum. It will happen again when the price of silver passes the next "magic" number. However, the points that Rastus, Solus and others have made (about the demand for the metal) still hold, and once the profit takers are done the price will go up again.

Although some of your points may be true in microcosm and at this precise point in time, they miss the greater points of PM demand and transfer of buying power away from the US and to other countries, who want what we have - and once had. Not to mention the huge devaluation of the dollar that has already occurred, with more to come. Remember, gold used to be $36 an ounce - right where silver is today.