Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: austrieconomist who wrote (14740)	7/24/2003 7:36:57 PM
From: Canuck Dave	Read Replies (1) \| Respond to of 39344

I think the price spike in 1935 was the US government starting their stockpile. Which makes actual analysis of silver during deflationary times difficult. They accumulated one boatload of silver. I have a figure which I keep and update once a year. It's cumulative inflation and also the Dow and silver in 1966 dollars (1966 chosen as a convenient market top and the start of the last bull in PM prices). It's remarkable how cheap silver still is relative to 1966 valuations (1.32 versus about 95 cents today in constant dollars.) CD

To: austrieconomist who wrote (14740)	7/24/2003 10:59:59 PM
From: LLCF	Respond to of 39344

Thanks for the silver commentary... DAK

To: austrieconomist who wrote (14740)	7/25/2003 9:08:21 AM
From: russwinter	Read Replies (3) \| Respond to of 39344

All this baloney about deflation while money gets printed unabated for a decade has set up monster commodity trades. That's why we are seeing rumblings in silver and big bond price declines. When Greenspan and his ilk (what kind of rock did this Bernanke idiot crawl out of?) signal this nonsense to the market it influences participants to take the wrong action. There are just too many "deflationists" traders out there, with too many deflation playbooks. Corn is a good illustration of this. I wish I could post Hightower Report's 25 year chart (subscriber based) of world corn ending stocks vs stocks to usage. But it shows quarter century lows in ending stocks (about 85 million metric tonnes). Meanwhile corn price is on it's butt (about 2.11 a bushel) , and the COTs are long a near record 75,544 contracts. This is a market set up to explode on any bad weather, or crop report. I am now long a bunch of Dec corn contracts. And despite strong oil prices, the market has insisted on selling off the energy stocks. Just insists on discounting $20 oil and $3.50 gas, what a gift. There is no accounting for China at all: bcaresearch.com