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Buy Gold & Silver Now! (Really??)

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W.K.F.

1,391 views

REALLY!

Believe it or not, this ride is far from over with. And if one were to break down the individual components, it's very plain to understand.Greetings Collectors,This will be the 4th time I've posted a journal with this title. But this time more than the other two postings I'm sure there are some dissenting persons out there in "numismatic land".My 1st post was on 3/19/09 and gold was $950. There were dissenters then which posted almost immediately after mine that this would not be a wise move and several months before would have been the time to buy when gold was $750. I agree that would have been a great time to buy. Along with a month later at $830 and a month after that at $865. But you can never go back in time because if we could we would have mortgaged the house and bought all we could at $250-$275 an ounce and silver was at $3. Well my next post was on 10/06/09 and gold was up another 18% to $1195 and I was pleading with all who would listen that we would all look back and fondly remember the event when gold pushed through $1000 for the 1st time and for a short period it could have been purchased for between $1100 & $1200.A little over 8 months later on 6/28/10 gold was at $1289 and silver had just breached $20 and I mentioned the ratio of silver to gold for the 1st time and it was right about 65 to 1. I went into great detail sharing how just a short while back, the ratio was over 100 to 1 and I tried to explain why this ratio would continue to drop and also shared that for century's the ratio had been 20 to 1 and that we were heading back toward that ratio. I said that gold would do very well but silver would fare much better on a percentage basis. But I was incorrect in saying the ratio for many many years had been 20 to 1. Actually for several hundred years the ratio was pegged at 16 to 1. And shared that we were heading back to this long time tested ratio. And that the time which will have passed when this ratio was finally at that point was not far off.I made my last post with this title on this subject on 10/14/10 and gold was at $1379 and silver was at $24.52 and the ratio had fallen from that 65 to 1 figure to 56 to 1 on another post dated 11/4/10 I mentioned that the ratio had fallen again in less than a month to 53 to 1 with gold at $1384 and silver at $26.03. I have been ending every post, regardless of the subject matter, with that days current ratio of silver to gold since late Sept 2010 up to present day.Now gold and silver had been rising back in the late 1970's and early 1980 and finally on January 21st 1980 gold was at an "all time high" of $825.80. From there $50 silver and $825 gold crashed to $3 and $250 respectfully and actually was stagnant for many years with silver going back and forth between $3 and $6 and gold between $250 & $350. This went on for more than a half dozen years, before both started creeping up. The both of them have been doing the same upward creep for over 20 years now. If gold would have stayed at $825 in 1980 and we would have just allowed for inflation at the very modest rate we experienced, gold right now today should be $2163.62 per oz. And if silver was at its normal ratio it had for several hundred years, it would be $135.22 an ounce today.This time when prices will be at this level is coming. And it will be here before you know it. In fact $135 silver is much closer than one would think. I predict silver will hit $135 before gold hits $2100. That would represent about 40% upside from here on gold and 300% or thereabouts for silver. People that believe that $47 silver is way too high. It's not. It's way too low. Why you say??The breakdown today for what silver is used for is this:Industrial use- 44%Jewelry & silverware-32%Photography-18%Coins-4%Bullion/investments 2%So you see that this hasn't even got off the ground good yet. Silver is among the most conductive of all of the metals known to man. From photography to compact discs to semi conductors to medical equipment is just a few of its uses. Basically if it's something "hi tech" it contains silver. But for over 60% of its uses, silver is just plain "gobbled up" and can't be reclaimed. Once it's used, it's gone, forever. Only jewelry, silverware, coins and bullion is reclaimable. And that is only 38% of its consumption. The Chinese and the government in India are encouraging their citizens to buy silver (and gold). Whereas in China, just a few short years ago, mere possession of the yellow metal could land you in prison.So you see where I'm going with this. There is no bubble. Very few people in America even own one ounce of bullion. Any silver they have is in heirlooms like grandma's silver tea set or sterling flatware. Once just a few %-points of the investing public in North America get involved, and start purchasing silver in an amount that is anywhere near the amount, percentage wise that experts recommend one should have in precious metals ( usually this amount is between 7 & 10%), that alone is worth $40 to $60 an ounce on top of today's current price. When people of financial means overseas get involved in a similar amount, and to a similar degree, tack on possibly, double that per ounce "upside" potential, in addition to the $40-$60 per oz. upside we will see in the price of silver from where it is at today. Bill gates & Warren Buffet have for the last 18months been acquiring millions of ounces of silver. Check it out. It's public knowledge. One of those guys is as about as conservative an investor as they come, and rarely bets huge amounts of money on anything remotely resembling a "long-shot bet". It is generally always a certain "for sure" "can't lose" type of deal or else he won't put HIS money there. Central banks all over the world have just starting their buying of gold, and more so, silver. Only one or two started over a year ago. And as they increase their now almost "non existent" positions, "percentage wise" to something that represents something more than just a percent of a percent, this trend which is in nothing remotely resembling a bubble, will tack on at least another $30 to $75 an ounce to what ever the price of the metal is at the time. Now this $30, $40, $50+ tack on, to the current price of silver, will not come all at once. It will be gradual just like the buying. But it will be consistent, and it will be orderly, and it will be continuous for some time to come. So maybe you can see a little of what I am talking about when it comes to the price silver is today, which is $46.71, and why even though this price seems high, it's really no where near where it should actually be.Those of you that are interested and would like to read and hear more, and in much greater detail why silver prices at $45-$50 is not high, and the reason why silver at current levels is certainly not a bubble, check out a site called Wealthwire.com Also you all may or may not know, but there is a site that has up to the second, real time current coin metal contents and how much value just the metal has at any given time. (the quotes are not "streaming" so you will need to refresh the page to stay up to the minute) This is a great site for those of you that are thinking of maybe grabbing some silver at auction or from somewhere else, and you need to know how much a coin is worth, "metal value wise". This site will also tell you for instance how much a pre 1982 Lincoln cent is worth "copper wise" in comparison to its "face value". This i8696.thumb.jpg.697b79b797304f79c3e7b96bb4980c97.jpg

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