Yet another mysterious flash crash. Silver should be worth $800 troy ounce
Silver markets have been rigged for years, but there doesn't seem to have any consequences apart from "fake-prices" of Silver.
Yesterday Silver contracts for September flash-crashed almost 11% from &16.14 to $14.34 per troy ounce.
Currently Silver is trading at 15.49 (-3.34%) and has broken through key resistance levels, hitting the lowest prices since April 2016.
$13.60-70 is the lowest point Silver has been since 2009.
It seems to me that Silver has a GIGANTIC head and shoulder formation on the 20 and 30 year chart.
Take a look at the Dollar to Silver ratio now compared to 1913
Now, this is the true value of Silver compared to the Dollar. At some point it will be traded at it's correct value. I have no idea when that is. All I know is that I've been ready for years with an average buy in at $17 per troyounce.
If we see $10 per troy ounce or lower I will back up the truck once again
Nice post. I guess $800 is a little bit unrealistic. However, we do know for a fact that the silver price is heavily manipulated. Its current price does not at all reflect its 'intrinsic' value. My personal target price in the medium term is $200.
Yup. 200 is realistic within 10 years imo.
200 is more like today's price (2017). But I sold all my silver in 2012 because I know the price is heavily manipulated... Hope silver will pick up to its real price, which is 200+ soon:) I have a silver bug friend who is hopefully coming on Steemit soon. May the Force be with us;) Congrats with 400+ followers already, impressing!
"Cryptocurrencies are cannibalizing demand for gold," "Bitcoin is arguably becoming a scarcer store of value" -Fundstrat Global Advisors
Definitely. But remember, The Bitcoin market is all ready bigger than the silver market. The silver market is ridicilously small.
Good point @scandinavianlife..hmm
I see no reason for the growth of silver, and gold, too. And do not forget about the extraction of precious metals from asteroids, you can read my post (on russian) on Golos.
At the end of the post there are links to the English-language articles about this problem
If prices go down, I hope to have some extra cash on hand to buy more silver.
That's possibly not stupid :)
Is silver a safe-haven or a hope at millions for you?
Thanks for the info btw
Mostly safe-haven (insurance) against hyper-inflation, EMP, War, anything that's really bad, but also a little bit of a hope at millions. I don't have THAT much (about 8% of total asset) but I will add another 4-5% if we se sub $10 prices. I mean..it's a no brainer. What about you?
I'm just a BTC snob with some other alts thrown in. I can't even pretend to know anything about deep economics, and have a hazardous relationship with conspiracy theories (market manipulation)
But, @jangaladesigns has posted about his silver acquisitions, and you have sparked my interest now too, so I might take the plunge. o.O
Market manipulation of silver is mainstream :) They don't even hide it. But it's like "And?..." :)
Don't compare silver value with dollar value. This does not make much sense, as you compare commodity with fiat currency. Compare silver & gold value which historically was 1:11 (early medieval ages) peaked at something like 100 and for last ten years moved between 30 and 90 (oscillating around 60). Even at its lowest your silver would be worth 1/11 of gold = $111 an ounce and and it's highest would be worth $12 an ounce. All those values are very far from your $800 ;-)
@pibyk
Yes, I understand that the Silver to Dollar ratio at $800 per oz is from the perspective that silver is an active monetary metal used as currency. But! You're doing a miscalculation..you're assuming that the price of gold is correct. My stand is that neither silver nor gold is priced right (and the confirmed manipulation of the prices I think is proof of that) so even if Silver won't be 800 because it's not going to be a currency, it still has to stretch for 1:11 at some point, and if Silver is manipulated, one can make the assumption that gold is too. So even in a conservative scenario, we could be looking at silver prices going up to between 100-200$ Which is not at all crazy. :)
Ratio 1:11 lasted until large deposits of silver were discovered in South America and Mexico. Since then supply of silver is much higher so the chances of gold silver ration returning to this level are almost non-existent.
I didn't wait, I just ordered three 1oz silver rounds from silver.com
For those of you who are going to benefit from the fact that silver prices will now tank, you're welcome.
Oh man..Now the whole market's gonna go insane. :)
It never fails, I buy silver, it tanks, I buy Ethereum it tanks, I should do everyone a favor and load up on Defense Industry stocks, peace would break out all over the world.
Haha..that made me lol. Well..how many times have you bought a stock, gold/silver or cryptos? I have bought thousands of times, and yes, it feels like that. You buy something, and sure enough it goes down. But sometimes the opposite happen too :) Like for me recently..I made a lot on bitcoin, ethereum and litecoin. I'm up over 100% on all of them. But then I bought altcoins, and I'm down on all of them. I started buying silver at 30$ in 2011 or 12. But I defined the reasons why I was buying, so it was easy to back up the truck when prices fell. I eventually managed to end up with an average of $17 on silver. Still down, but not so much. I'm ready to pull the trigger on altcoins too..So you either need a strategy or you just hold. I would keep an eye on all coins this weekend and perhaps buy some more if it looks green on monday. We'll see. The most important thing though..if you believe in cryptos and silver, just try to time it. Rationally all these prices were seeing now are good prices..only a question of HOW good. :)
Yup to every point you make.
I buy the little I can afford to spend, with the viewpoint that it's an investment, not gambling.
Any time I've tried to predict price swings I lose more in the transaction fees than I make on price swings so I buy and HODL.
I have some silver that I paid in the upper $20s for but I balanced it out with free silver I got hunting US 50 cent rolls.
http://bit.ly/grab-spot