ECON So What Happened To Silver??

[20Gauge]

I try to tell people how stupid they are for buying power ball tickets. And eating junk food. But I can't because....

Did you see its up over 700 million and the cream cheese stuffed deep fried jalapeño peppers are on sale at the gas station where you can get your chanch at 700 million!

We did the cream cheese things on what we grew. Sooo much better

 

[20Gauge]

That's great for you. But what about the multi millions of people, that believed the hype, and jumped into the pool in December and January, how do you think they are feeling now, 8 months later, while trying to pay off the credit card bill they used, to buy the silver?

I have always believed, if they are pushing it, then it is too late to buy

 

[West]

We did the cream cheese things on what we grew. Sooo much better

A minute on the lips.....

I love those things!

 

[Southside]

That's great for you. But what about the multi millions of people, that believed the hype, and jumped into the pool in December and January, how do you think they are feeling now, 8 months later, while trying to pay off the credit card bill they used, to buy the silver?

IDGAF!

 

[King Samson]

I have always believed, if they are pushing it, then it is too late to buy

But how does the average Joe 6 pack know? The "talk", the end of the year was, Silver is going to 150 - 200 - the MOON, so they listened to that chatter, and bought... You know, FOMO.

The LCS and online dealers were swamped, and sold out of inventory those few months..

And.... what are they thinking now?

 

[Kathy in FL]

Yep, gained a few back today, but still down -50% from the high in January.

I haven't seen anything written why it hasn't grown any legs back, and tried to test that high again. The whole trade has got really quiet.

Why?

As happens with any market, at those prices the market got glutted and it will take a while - probably a long while - for the market to go to the higher up-side. It looks like it is trying to stabilize (unless you are a day trader of currencies and metals) but it could just as easily continue to go down. I don't foresee it climbing the way it did, at least for a good long while. The people that bought in at the high are losing their shirt on the fiat expended. The economy makes other things much more profitable. And how far it has fallen has spooked many investors in PMs even if on the surface it seems like a "sure thing" in the long run.

Given the inflationary pressures, people need their money to perform, not be stable or sink.

 

[Kathy in FL]

But how does the average Joe 6 pack know? The "talk", the end of the year was, Silver is going to 150 - 200 - the MOON, so they listened to that chatter, and bought... You know, FOMO.

The LCS and online dealers were swamped, and sold out of inventory those few months..

And.... what are they thinking now?

And that is probably a big part of why silver can't get out of the long grass. Once investors/buyers get burnt or see others get burnt that bigly, there is more than just a little hesitation about sinking money/investment fiat/whatever you want to call it, into a market.

Look at how oil is performing after the promises/predictions made of $200+/barrels. It bangs around the $100/barrel mark and then comes back down. But oil has a use and people figure they'll get something back out of any investment. They aren't so sure that will happen with PMs. And the further it falls the more difficult it will be to get consumer confidence to return to that market/investment. Then there is the issue of whether it is physical being traded or paper.

 

[Southside]

Being in commodities is not investing, it's speculation, pure & simple.

 

[Kathy in FL]

Being in commodities is not investing, it's speculation, pure & simple.

By your definition everything is speculation. Certainly the market reflects that definition. But they call it investing. Some people say po-tay-toe and some people say po-tah-toe.

 

[West]

Being in commodities is not investing, it's speculation, pure & simple.

Like being a prospector, and not a miner.

 

[mikeabn]

That's great for you. But what about the multi millions of people, that believed the hype, and jumped into the pool in December and January, how do you think they are feeling now, 8 months later, while trying to pay off the credit card bill they used, to buy the silver?

There are always people who buy at the very top and sell at the very bottom.

 

[West]

There are always people who buy at the very top and sell at the very bottom.

Some do it on purpose if they need a huge loss. To offset the taxes they owe.

Better the money going into the private casino banks than the bureaucrats/bankers pockets!

 

[Southside]

Like being a prospector, and not a miner.

Actually, the best one to be is the investor(Royalty Gold Companies)

 

[King Samson]

Some do it on purpose if they need a huge loss. To offset the taxes they owe.

But wait, you've said PM purchases are untraceable, due to cash nature, So how are they going to take the losses on their taxes? That means they'll have to declare all their purchases.

Are they going to do that?

 

[West]

Actually, the best one to be is the investor(Royalty Gold Companies)

Or the guy that sells the tools to mine or hardware/machine the gold. But your right the broker who sells/sold the claims or shares of the profitable miners...

 

[Southside]

The suppliers of mining heavy equipment have done well the last 10 years.

 

[West]

But wait, you've said PM purchases are untraceable, due to cash nature, So how are they going to take the losses on their taxes? That means they'll have to declare all their purchases.

Are they going to do that?

No they will invest in a losing business(like a auto lot, or money management company) that may have to sell assets they want at huge discounts, at auction prices.

I've done well in tax/bank auctions. For example. And yes one was a business that at first I helped get started. Of course I wasn't planning on it to work out that way.

 

[Southside]

No they will invest in a losing business(like a auto lot, or money management company) that may have to sell assets they want at huge discounts, at auction prices.

I've done well in tax/bank auctions. For example. And yes one was a business that at first helped get started.

Well, auto lots(Major dealer network for sure) are losers going forward.

 

[West]

But wait, you've said PM purchases are untraceable, due to cash nature, So how are they going to take the losses on their taxes? That means they'll have to declare all their purchases.

Are they going to do that?

Also exchanging PMs to buy tools for business plans, then making money off those tools is a excellent plan.

Banksters hate that, and the tax man can't say poop! So you spent some financial gains on equipment on a business tool you can now use as a expense, instead of cash/income.

 

[Henry Bowman]

Spoke with a tenant of mine, great people, they bought in at around $29 last year, Sold off Mid January this year , just about at the peak and did quite well. They took 1/2 the profit and got a new Van and a new commercial oven that I ran gas line in the basement / 2nd kitchen for them, she bakes all kinds of good stuff and sells them at different events and fairs etc... she does really well with it. Everytime I go over there I swear I gain 15 pounds just from smelling her stuff LOL.

Anyway, they were very happy that we talked about it last year and they dove in, got out without being hogs and might look to get back in a bit again. They will be moving next year around mid summer, building a house Down south ( SC ) , going to miss them for sure.

 

[West]

But wait, you've said PM purchases are untraceable, due to cash nature, So how are they going to take the losses on their taxes? That means they'll have to declare all their purchases.

Are they going to do that?

Also one does not declare a big purchase unless its used as a business expense. Although the seller of said big purchases often will create paper trail, for their interests. Granted. And most states want their cut on assets gained by individuals and businesses. One has got to keep the state happy and pay your taxes!

And one only needs by IRS law to declare income. One doesn't have income from PMs sitting in a hole. But if a dummy exchanges their PMs for stupid fiat, then yeah.

Everyone has to pay at least 15% of every dollar one takes as income. Fact.

And thats the way I play it.

 

[20Gauge]

But how does the average Joe 6 pack know? The "talk", the end of the year was, Silver is going to 150 - 200 - the MOON, so they listened to that chatter, and bought... You know, FOMO.

The LCS and online dealers were swamped, and sold out of inventory those few months..

And.... what are they thinking now?

Look we know from the day of the revolution that only 3-10% of the population has any understanding as to what is going on. It has nothing to do with wealth or position. It has to do with personal growth.

Here we have a huge percentage that pays attention and are knowledgable.

Yet, I deal with hundreds of people each year, people who are intelligent. Capable etc.

Yet, they have very little knowledge of the wider world, much less things like silver and gold prices.

In short they don't. Experience taught me with lots of reading. Something that seems to be in short quantity these days.