PDA

View Full Version : Silver needs to gain some steam


Argentum est viaticus
03-02-2011, 11:55 AM
it is so slow gains.
Only up 36 % last year in SEK.
The gains in $ is irrelevant, itīs a loosing currency anyway.

Need some spectacular gains, thanks.

old wanderer
03-02-2011, 01:36 PM
it is so slow gains.
Only up 36 % last year in SEK.
The gains in $ is irrelevant, itīs a loosing currency anyway.

Need some spectacular gains, thanks.

That is because you are still playing with paper...Ag was up 76% last year....PM is always better than paper in todays brave new world.

AgStacker
03-02-2011, 02:54 PM
SEK is the Swedish currency, he is saying that the gains in dollars are not matched by gains in his local currency because it is stronger than the dollar. This is true but what is also true is that any gains Swedes get would be taxed at 80% anyway... so I don't think it would be that much help anyway

GoldarSilvarGam
03-02-2011, 04:12 PM
If a rolling 12 month ROR of 100%, or about 50% annual return in your currency doesn't "float your boat" let me refer you to one of the many derivatives markets in which your investing Krona's can be put to work.

You might want to consider how the derivatives have served the investment banks and the world economy in recent years before diving in head first though...

999FINE
03-02-2011, 04:29 PM
Does anyone know how much silver actually gained last year minus dollar devaluation???

lonewolf
03-02-2011, 04:38 PM
Tough question...it is one of those perspective things I think. Not as good if you want Swiss franc better aginst the dollar and us real estate not bad vs oil...

GoldarSilvarGam
03-02-2011, 04:41 PM
The price change of silver must by necessity be measured against something else to measure a % gain or loss, typically a currency, and the dollar is still (though not for long) the gold standard (Freudian slip) when it comes to world currency transactions. What currency would you like to measure it's return in?

JustaNumber
03-02-2011, 05:27 PM
Does anyone know how much silver actually gained last year minus dollar devaluation???

You are comparing apples and oranges. Your question is only relevant if you were selling silver in the U.S. with the intention of buying another currency with the proceeds. The term "dollar devaluation" these days means that the dollar is worth less compared to a basket of other world currencies. This is opposed to in the old days when we were on a pseudo gold standard, a devaluation meant an official change in how much gold each dollar was worth.

I think the real question you are asking is how much buying power has the dollar lost vs. how much buying power has silver gained? To do this you would compare the rate of inflation with the % gain of silver. The only problem here is that the government fudges the inflation numbers like nobody's business. They exclude "volatile" items like food and energy, and then make substitutions on items that are actually going up in price, or make other extremely subjective adjustments. So basically, if you exclude all the things that are going up in price, there is effectively no inflation! There is a website, shadowstats.com, that attempts to use the original formulas for calculating inflation (before the government changed the formulas). They claim inflation is currently about 9% (year over year), vs. the government claiming about 2%. (After seeing the most recent increases in gas, cotton, and food, I wouldn't be surprised to see those numbers increasing substantially soon). Since silver is up 100%, silver is currently beating inflation.