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From: bwm@ccieng2.UUCP (Brad Miller)
Newsgroups: net.invest
Subject: re:silver
Message-ID: <463@ccieng2.UUCP>
Date: Fri, 6-Jul-84 17:25:25 EDT
Article-I.D.: ccieng2.463
Posted: Fri Jul  6 17:25:25 1984
Date-Received: Mon, 9-Jul-84 01:11:08 EDT
References: <2132@tekig.UUCP>
Organization: CCI Central Engineering, Rochester, NY
Lines: 25

Ah, silver. I have made several dollars here, and I would like to share some
presumed wisdom with all you out in netland.

1) DO NOT BUY SILVER NOW. There is a substantial oversupply, industrial use
has been cut, and will be cut more. Additionally, silver is the 'poor man's' 
investment: there are MANY people who own silver. Normally, I would say that
silver for under $10.00 an ounce is a good buy (I bought two years ago when
it was at $5.90), but I think it will not break 11 for quite a while yet.
Gold is another story. In fact, I suspect that while normally silver follows
a given ratio with gold (around 45:1)_ I suspect that ratio will increase
in the next year. Why? Basic inflationary fears will send people running
to gold. Silver too, but historically, silver does not seem to have
performed as well as gold during most inflationary phases of the economy.
Silver is also in substantial oversupply in the USSR (according to Personal
Finance) and they could begin dumping any time they want (there wheat harvest
is off 10% so far this year, so they may need to raise money to import additional
grain).

Take it or leave it. That's the way I see it. I think gold or platinum,
maybe rhodium will perform much better over the next 1-2 years than silver.

Brad Miller

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