ArabianMoney’s Peter Cooper goes down to the Sharjah Gold Souk with Sandra Mergulhao from MyDubaiMyCity to investigate the silver market and finds traders forecasting a 30 per cent price hike for 2013 after a disappointing 15 per cent over the past 12 months.

Is this the year silver will catch up with 32 years of price suppression and finally break through its 1980 all-time high of $50 an ounce? No other commodity trades for less than it did three decades ago.


    • When gold hits 5k and silver 300 bucks, the world will look very different.  That would mean the central banks lost all control to manipulate the markets.  There will be a global meltdown of epic levels when the metals hit this level of price.  Really a weird place to be.  We want the metals to go up in price when it’s measured in these currencies but it means the world will be rocked in a way that we have never seen before.  Personally I need to stop measuring price and put more emphasize on the value.  How can you determine future price when it’s measured in a currency that might not be around much longer?  I like Andy Hoffman’s take on buying the metals.  People keep thinking that buying gold and silver is a investment.  It’s just a hedge or protection against the global economical environment.  I actually think buying 9mm or 40 caliber ammo is a better short term buy then the metals.  With all the talk about guns and confiscation especially after Friday, I would think the guns and ammo sells were very strong this weekend.  I would think the prices of guns and ammo should go up rather quickly.  They can’t short guns and ammo on the markets like gold and silver.

  1. The “price” will go “up” when faith is lost in currency. Joe Sixpack still thinks a hundred dollar bill is kinda kool so for the general populace to lose faith is slim. Now when the rest of the World turns its back on the Dollar as “just another currency” and gets a true PM backed exchange currency out to the masses things will change. I doubt the Ame-Rican populace wants to trade in the Yuan although they stengthen it everytime they go to Wal-Mart.
    That said I WISH some of these “experts” including SGT and Brother and Shiffster and ‘da King and all the Canucks will start a discussion of a “post FED” world when and I say when …not if…the BRICS+ consortium of many many countries roll out the PM backed currency. They use the paper Yuan at the moment as well as big chunks of Gold of course but I mean an actually “Redeemable by the Bearer on Demand” sort of note. (With Dragons and stuff on it of course.)
    Industrial usage I believe could wane if consumers aren’t out their snatching products up and if one looks at the Baltic Dry global production is down. Jewelry may rise in certain societies but Money is where the shift will be.
    Can’t ANYBODY tell me what the BRICS+ are up to?   

  2. A little off topic, but the sheep still do not get it.  They live among us.
    I had someone tell me last week, a friend of theirs was behind a lady at a gas/convenience store
    and she paid her bill with ten silver dollars……
    WAIT, it gets even better….
    The clerk traded the silver dollars for a Hamilton ($10) to the next man in line because he did not know where to put them in his cash drawer.
    (I am still trying to find this clerk and the little old lady)

  3. Silver and gold will probably not move in the same direction or with the same force. Silver, its demand, shortages, and vital utility could easily run up while gold does little but range trade. Gold is not nearly as vital to industry. We can manufacture our goods without much of it.  It’s a store of value in relation to currencies in the world and their trajectory.
    Silver just can’t be reporduced quickly.  When the stocks of silver are out, it will jump.  I’m not confidend that gold with react as violently.

    • Silver being a byproduct mainly compared to gold being a primary mined metal I see shortages approaching rapidly as global demand for products continues dropping reducing the demand on copper and other metals that silver is a byproduct of.

  4. If gold and silver do breakout and gold reachs 5000, I can’t see the GSR remaining  @ 50 to 1. Silver should achieve a 10 to 1 ratio and a price of 500. From there who knows. But 5000 gold would mean (1) TPTB have lost their ability to control the price of PMs and the fraudulent GSR or (2) are allowing the price to rise. The GSR would be one way of knowing which is which. If gold hit 5000 and silver 100 or less then TPTB would still be pulling the strings in the market.

Leave a Reply