Visa IPO, Precious Metals Retreating

Visa recently had the largest (dollar amount) IPO in Wall Street history providing many of the underwriting banks much needed boost in earnings for the quarter. Maybe even for the year.

This IPO, lower interest rates from the Fed, and some people thinking the price of most precious metals is way too high, like gold and silver, makes for a tough market on silver. In one week the price of silver went down nearly 4 dollars a troy ounce. You knew it had to happen sooner or later, the price was just escalating to rapidly.

So what does that mean for your investment strategy? Should you get out too? Well if you bought at $21, I might have to suggest sticking it out, (although don’t take my investment advice, I beg you). But with the recent sell off, and inflation not being helped by lower interest rates (at least I think that’s how it goes) you may see the price of silver climb again.

But don’t bet the house on it, only as much as you can loose.



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4 Responses to 'Visa IPO, Precious Metals Retreating'

  1. jimmycebada - March 25th, 2008 at 11:26 am

    Silver will explode in value, much , much higher than $50.00 in 1980. 2008. we simply have run out of silver, very little is being mined. The forces are all there for a huge rise in the value of the shiny white metel. $85.00-100.00 oh yes..soon.

  2. evossman - April 6th, 2008 at 11:47 am

    Interesting perspective. I haven’t heard that very little silver is being mined. I can definitely see that demand on silver, with developing nations, will drive the prices higher, especially if mining silver has slowed down.

    I’d be interested in finding out what the mining rates are over the past 20 years and the projected rates.

  3. T - April 6th, 2008 at 5:26 pm

    more silver is used in a year than is mined, and all of the silver that was stored above ground is almost out. this process where more silver is used than mined has been going on for the last 16 years, and we ve had to use the above ground supply to make up for the rest. we re not necessarily running out of silver because we will most likely always find silver in the earth, but finding it and taking it out fast enough is the big problem; therefore, the silver shortage. the decline in the dollar helps out as well

  4. Silver Retreats After Good Finish on Wall Street -- Silver Investing - April 19th, 2008 at 9:06 am

    [...] expansion everywhere in the world, the need for silver in industrial processes, and comments like these comments on blog silver how can there be a retreat in prices. There may be a dip but probably not a retreat.   [...]


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