Update on Silver and my prediction for 2013:
Well; first off, I hope everyone had a good Christmas and New Year. Had both of my kids in town for the holidays, so I was able to enjoy family time. But alas; we must move on with life.
So; what about silver? It pretty much stalled the last few weeks of December waiting for the fiscal cliff garbage to run it's course. And it did run it's course. Basically, the "Can" has been simply kicked down the street. In other words, nothing was accomplished. Spending cuts and such are on hold for a couple months. But, because the cliff wasn't actually encountered, it looked promising. As such, the stock market, as well as gold and silver took a major jump initially on January 2nd.
But of course, that isn't the whole story. Now, the Fed is realizing that maybe it can't continue on with the "Quantitative Easing" (QE1-4) that they thought they could. They are starting to realize that maybe it will actually do more harm than good for the country and the economy. Well, not printing more monopoly money means the dollar gets stronger. As such; gold and silver lost basically everything they gained the day before. So, with silver sitting at around $29.60, does that mean it's on it's way down and the dollar is going to get stronger? I don't think so. These quick swings happen more often in modern times because silver and gold is also now being sold not only as a commodity and traditional investment; but also as part of retirement plans, ETF's, etc... Therefor, there is a lot more quick selling by very ignorant fund managers.
So what do I think? Even if the QE3/4 is slowed and the dollar gets stronger, silver still has great potential. The tax rates have now risen 2% for Payroll Taxes. That's going to mean more money for the government and less for the people. Because the fiscal cliff has been adverted, without spending cuts, there's going to be another $4 TRILLION dollars of debt accumulated. But what's really important is that the U.S. Dollar is going to lose it AAA Rating. The S&P downgraded the Dollar in 2011 from it's AAA rating. But if Fitch or Moody downgrades the dollar from it's AAA rating, then that will be significant. And with the increasing debt and no correction in sight for spending, it looks very likely that the Dollar may lose some of it's rating.
This is going to have investors putting their money in more secure areas such as precious metals and other commodities. That's why when the dollar's value goes down against the Yen, Euro, etc... the price of gold and silver go up. Well; if the rating on the dollar goes down and it isn't seen as secure of a place to hold money, then more of it's going to go into silver and gold. And it's going to make their value go up. We're not talking the ETF's and funds, but rather PHYSICAL gold and silver. See, this is the big manipulator in the gold/silver prices. Like I said earlier, there is a lot of money in PAPER Gold and Silver. The ETF's, retirement funds, mutual funds, etc... But a lot of those don't require 100% gold or silver on hand to cover their holdings. They also sell and buy daily, which affects the overall prices. But when physical gold and silver are bought, they are held longer because they are a place to hold your wealth when you are taking it out of another area.
This is where the big change in the future is going to go concerning gold and silver. It may look like the price is going down today; but you have to look long term. All that paper gold and silver isn't real. It's about as useless as the U.S. Dollar. There's NOTHING backing it up. When solar panel makers, jewelry makers, chemical companies, etc... need silver; then can't use silver certificates from a fund. They need REAL PHYSICAL SILVER. If the Dollar is downgraded, more physical silver is going to be wanted for investing and storing wealth. And unlike gold, the industrial uses aren't going to go down, so the demand will outpace the supply to a point.
So; my prediction still holds that during the 2013 calendar year, I predict that silver will reach the $50-$60 range. Depending on political moves; ratings; etc... the price of silver could even go higher. Anyway; it's just a prediction. I am not advising anyone to take all of their life savings or to cash out all your IRA's and mutual funds and buy silver. But having at least $10,000 worth of silver at today's prices; (300-350 ounces); wouldn't be a bad move. If nothing else, it will keep up with inflation, and you'll always get your money back. In other words, it will never be worth $0. But again; this is just my opinion. CYA: SE
Well; first off, I hope everyone had a good Christmas and New Year. Had both of my kids in town for the holidays, so I was able to enjoy family time. But alas; we must move on with life.
So; what about silver? It pretty much stalled the last few weeks of December waiting for the fiscal cliff garbage to run it's course. And it did run it's course. Basically, the "Can" has been simply kicked down the street. In other words, nothing was accomplished. Spending cuts and such are on hold for a couple months. But, because the cliff wasn't actually encountered, it looked promising. As such, the stock market, as well as gold and silver took a major jump initially on January 2nd.
But of course, that isn't the whole story. Now, the Fed is realizing that maybe it can't continue on with the "Quantitative Easing" (QE1-4) that they thought they could. They are starting to realize that maybe it will actually do more harm than good for the country and the economy. Well, not printing more monopoly money means the dollar gets stronger. As such; gold and silver lost basically everything they gained the day before. So, with silver sitting at around $29.60, does that mean it's on it's way down and the dollar is going to get stronger? I don't think so. These quick swings happen more often in modern times because silver and gold is also now being sold not only as a commodity and traditional investment; but also as part of retirement plans, ETF's, etc... Therefor, there is a lot more quick selling by very ignorant fund managers.
So what do I think? Even if the QE3/4 is slowed and the dollar gets stronger, silver still has great potential. The tax rates have now risen 2% for Payroll Taxes. That's going to mean more money for the government and less for the people. Because the fiscal cliff has been adverted, without spending cuts, there's going to be another $4 TRILLION dollars of debt accumulated. But what's really important is that the U.S. Dollar is going to lose it AAA Rating. The S&P downgraded the Dollar in 2011 from it's AAA rating. But if Fitch or Moody downgrades the dollar from it's AAA rating, then that will be significant. And with the increasing debt and no correction in sight for spending, it looks very likely that the Dollar may lose some of it's rating.
This is going to have investors putting their money in more secure areas such as precious metals and other commodities. That's why when the dollar's value goes down against the Yen, Euro, etc... the price of gold and silver go up. Well; if the rating on the dollar goes down and it isn't seen as secure of a place to hold money, then more of it's going to go into silver and gold. And it's going to make their value go up. We're not talking the ETF's and funds, but rather PHYSICAL gold and silver. See, this is the big manipulator in the gold/silver prices. Like I said earlier, there is a lot of money in PAPER Gold and Silver. The ETF's, retirement funds, mutual funds, etc... But a lot of those don't require 100% gold or silver on hand to cover their holdings. They also sell and buy daily, which affects the overall prices. But when physical gold and silver are bought, they are held longer because they are a place to hold your wealth when you are taking it out of another area.
This is where the big change in the future is going to go concerning gold and silver. It may look like the price is going down today; but you have to look long term. All that paper gold and silver isn't real. It's about as useless as the U.S. Dollar. There's NOTHING backing it up. When solar panel makers, jewelry makers, chemical companies, etc... need silver; then can't use silver certificates from a fund. They need REAL PHYSICAL SILVER. If the Dollar is downgraded, more physical silver is going to be wanted for investing and storing wealth. And unlike gold, the industrial uses aren't going to go down, so the demand will outpace the supply to a point.
So; my prediction still holds that during the 2013 calendar year, I predict that silver will reach the $50-$60 range. Depending on political moves; ratings; etc... the price of silver could even go higher. Anyway; it's just a prediction. I am not advising anyone to take all of their life savings or to cash out all your IRA's and mutual funds and buy silver. But having at least $10,000 worth of silver at today's prices; (300-350 ounces); wouldn't be a bad move. If nothing else, it will keep up with inflation, and you'll always get your money back. In other words, it will never be worth $0. But again; this is just my opinion. CYA: SE
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