From the September 14th Numismatic e-newsletter: Does a sales drop in silver American Eagle bullion coins signal silver won’t rise? Here are some answers sent from our e-newsletter readers to Editor Dave Harper.
No. There are too many other avenues (90 percent silver coin and silver dollars, etc.) of accumulating silver to solely rate future prognostications on just sluggish silver Eagle sales; not to mention the Mint’s premium over silver content.
Silver bullion is separate from the spot price of silver itself in my humble opinion. The spot price of silver will go up because the Fed has again decided to print money out of thin air. This further means that at some point this money will have to be drawn out of the economy. That means higher interest rates and inflation. The dollar you earned today is worth even less. Don’t you just love the brilliance coming out of Washington?
There is no way that the current price of silver will continue to rise!
As I write my response to you, the price of silver is $34.63, and that is melt price according to the website Coinflation.com.
I’m personally buying more U.S. silver coins than U.S. gold coins because there is much more demand for silver outside of the numismatic world than there is for gold.
I’m going to make a prediction, which is: U.S. silver minted bullion coins will rise above $100 per ounce by the end of 2013!
Larry W. Young
My opinion about the price of silver is that it will go up sharply. I have researched quantities of silver available, industrial use for silver and other consumers of silver, leading me to the conclusion that the price of silver will skyrocket. I attribute the lower sales of silver Eagles to lower quantities; however, I have not researched that opinion and it could very well be wrong.
Robert M. Lynch
I think that when gold rises to about $2,000 per ounce, silver will follow to about $50-$60 per ounce. Maybe a little more. As gold goes up to $4,000, silver will likely be much more than, say, $100-$120 per ounce because I think that the ratio will also increase so that when gold is $4,000 silver could be $400. I think silver is a safe bet, but if the world begins to end, how do you carry it all to your safe-house? (This will hold the silver ratio down.)
I’m sure you got it right when you say silver could rise or fall, but I say it will follow any other precious metal. It will never be worth as much as gold but will basically go up and down with the price of gold. But – who cares? Silver is more plentiful and more easily refined than gold so it will never equal gold’s value, but the value will go in the same direction up and down (generally speaking). But – so what?
I believe that silver, like all “buyables,” have their core base. These people buy silver all the time.
You have the “Timers,” who only buy when silver drops in price, and you have most other people who buy when the media says, “Silver on fire.”
So a drop in silver-buying means nothing. Long term, just like when my Dad bought our first house it cost $19,000 in 1968, silver is cheap at $30.
Silver, regardless of price, is a good investment like gold. Even though I had sold some to finance a recent move, my nestegg is still safely put away. A one ounce bar or round per month can add up as quickly as anything else.
Berkel Netherlands (Formally Escalon, Ca.)