Wednesday, February 9, 2011

Oh Boy

14 comments:

Stagflationary Mark said...

First things first.

Where is all that silver going to be stored?

If silver prices go to $1 million per ounce then it would make a lot of sense to buy a 500 square foot condo at any price (say in Florida overlooking the ocean). You could devote one square foot of it to silver wealth creation and use the other 499 square feet to living the dream.

And let's not kid ourselves, silver's price really is ludicrously low. Just look at the chart.

Every week is Snark Week! ;)

CP said...

Question:

If the marginal buyer of something doesn't care how high the price is, then how could it not be overpriced?

Stagflationary Mark said...

CP,

I can think of one way.

Ben Bernanke could drop dollars out of helicopters to pay for it I suppose.

I can't speak for others, but there have been a distinct lack of helicopters hovering over my house.

I have been given the opportunity to borrow more money though. I'm just concerned that someone might ask me to pay it back someday.

Of course, precious metals are not like housing. Nobody would ever borrow money to buy precious metals. Right?

Should you borrow money to buy gold?

This post is inspired by a reader who asked me whether it would be a good strategy to pull equity out of a house by means of a home equity loan and use the borrowed money to buy gold.

Even debtors should buy some gold

However, the point I wish to make in this post is that I strongly feel that everyone should buy some gold, even those who have crippling debts.

CP said...

EVERYONE should buy SILVER no matter how much it costs

getyourselfconnected said...

Mark, the helicopters are just black and invisible, geez......

I even use a deodorant that has silver in it! That silver is going goodbye, lost from circulation! Over time it will all be gone!

Dislcosure: Long physical silver

Stagflationary Mark said...

GYSC,

"I even use a deodorant that has silver in it! That silver is going goodbye, lost from circulation! Over time it will all be gone!"

EPA scrutinizes “nanosilver”

An emerging technology in washing machines that generates silver ions and is intended to kill odor-causing bacteria has led the U.S. Environmental Protection Agency to regulate products marketed with such assertions as pesticides.

New concerns over nanosilver

Purdue University scientists have found that when nanosilver - a nanoparticle growing in popularity as a bactericidal agent - is suspended in solution, its toxicity increases tenfold, causing birth defects and death in aquatic species. When the nanosilver was allowed to settle, the solution became several times less toxic but still caused malformations.

At least you aren't eating it. That's something I guess. ;)

CP said...

I never thought of all the silver that is being "lost" due to antimicrobial and medicinal uses.

Fuck! I'd better buy back those walking liberties I just sold for $11 each!

Do you know how many walking liberties worth of silver it takes to make an Under Armour PowerSweat hoodie?

And once I tear it off and it sinks to the bottom of Lake Tahoe during the ironman, the silver will be lost forever!

getyourselfconnected said...

Mark,
hee hee, they still allow triclosan in everything even though that kills the baby fathead minnows big time. You always bring me down! LOL

CP said...

Augh! Do you guys realize how much RICE is being lost every year to consumer demand and consumption??

They have to grow a WHOLE NEW CROP every YEAR just to replace consumption.

What the hell??!

Can you imagine how high the price of RICE would go if everyone decided they wanted to fill their house to the waist with rice AND keep eating the same amount?

Stagflationary Mark said...

GYSC (& CP),

I like to pop bubbles. I have since I was a kid and I never grew up. What can I say? Hahaha! :)

CP said...

If you see something wobble, push it over!

P.S> You can add a silver emulsion to bubbles and they become unpoppable.

CP said...

"Do you know how many walking liberties worth of silver it takes to make an Under Armour PowerSweat hoodie?"

CP said...

"Can you imagine how high the price of RICE would go if everyone decided they wanted to fill their house to the waist with rice AND keep eating the same amount?"

CP said...

This was such a great thread! And our mockery was dead on!

"If you see something wobble, push it over!"