RRussell - Silver comment - ouch

[AgAuGal]

Here is a comment Russell made from his GE posted article:

Silver may be a different story. Silver is a chameleon. In an inflation, silver becomes a "precious metal," and a monetary metal, and silver goes up with inflation. But in a deflationary situation silver is viewed as an industrial metal. In a deflationary environment, silver is not, as in the case of gold, viewed as money. If we're going into a deflationary economic collapse, holding gold doesn't worry me. But holding silver would worry me.

I wonder how Morgan or Butler would respond to the revered Mr. Russell. I hope he is wrong cause ifin he aint I picked the wrong PM to ride. :banghead: If I have read Mr. Russell correctly he is expecting a deflationary period similair to Prechter.

Comments?

[lhslancers]

I guess that's why silver performed so well during the great stock bull market of the 80 and 90's with all the economic expansion.

[AgAuGal]

:haha: :haha: :coolbeer:

[HistoryStudent]

I still like the Central Fund of Canada's way of saving 50 ounces of silver for each ounce of gold they hold. I just don't think the above ground silver supply will last that much longer without some bigger default on the horizon.

And, by all that is righteous, it's like the movie, "Somethings Gotta Give," and that means silver is going to give back to anyone that holds on to her.

[PONCE]

Silver at $6.53, that's means that over the past week my silver went down about $47,000 OUCHHHHHHHHHH, however, last time I bought silver it was for $5.50 back in July therefore I am a little bit ahead of the game : )

If it touches $6.00 I'll be getting some more, I do have a lot of faith that the US is going down the drain in more ways than one.

With Bush as captanin of the ship the ship is going to sink.

Either because of war, economy, commodities, and a whole bunch more.

[Silverity]

It all seems to do with the dollar. A sizeable counter rally looks in progress from the lows of about 84. According to Elliott Wave Theory, the dollar completed a nice impulse wave down from its 2001 highs and is taking a breather. This process could take months before the expected final plunge.

As for silver, it looks to have completed a final 5-wave impluse in the next day or so near the 50% retracement of $6.46.

There are no certainties but silver will rally now to perhaps $7.50 in a B-wave before completing the C-wave to $6.46 again or thereabout.

I expect there will be some synchronicity with the dollar's current bear rally.

Silverity.

[Golden Half]

Russell is wrong.
The MO of welfare societies is inflation through
currency debasement -- to pay for the current
deficit spending and past and present political
promises. Commodities are going to rise just
because the unit of value -- measured in a given currency -- is declining;
there may be other reasons as well, such as increased demand during boom times.

The deflation affects other parts of the economy,
such as wage earners.