Metals and Political Events
CRHer700
Posts: 1,977 ✭✭✭✭✭
Though this might sound political in nature, I just have one question: how far do you think silver and gold will drop to price in the recent U.S. election. I can see that they have already taken quite the hit. Any opinions on how far before bottom?
(Don't kill me for this. It is an honest question.)
God bless all who believe in him. Do unto others what you expect to be done to you. Dubbed a "Committee Secret Agent" by @mr1931S on 7/23/24. Founding member of CU Anti-Troll League since 9/24/24.
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hope is driving metals lower. reality will once again drive them higher.
Natural forces of supply and demand are the best regulators on earth.
It is a fair question. I’m wondering myself, with my finger hovering tentatively over that “sell” trigger…
At least silver. Gold is a bit toppy
Gold went up from $2000 in March to $2800 the beginning of Nov. It is/was due for a 10% correction just to regroup. I retired one of my gold sets and sold quite a bit the past 3 weeks to take some profits in the mid 2700's, as I thought it had gone up too fast.
It also now has a head and shoulder top with the head at $2800. I think $2615 or around there is some first good support at the Oct low. Around $2,525 is major support (10% down at Sept. low) and I would expect it to start back up from there. End of year variables also in play now. Good luck.
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hopefully enough to get more silver, jmo
The 10-year Treasury yield is going up on expectations that both nominal GDP growth and inflation will be heading higher.
We've had a major upward move in the 10-year yield in the last 24 hours.....week....and last few months.
I suspect gold will catch a bid shortly. Watch the 10-year yield...unless it drops big-time gold should rebound.
Nothing fundamentally significant to gold or silver has changed.
I knew it would happen.
We did not automatically become fiscally responsible. “Stackin Jacks “ is my motto. And drops (in price) afford opportunities ( in markets).
That's right. I shall use it as a buying opportunity.
God bless all who believe in him. Do unto others what you expect to be done to you. Dubbed a "Committee Secret Agent" by @mr1931S on 7/23/24. Founding member of CU Anti-Troll League since 9/24/24.
Just the price
My US Mint Commemorative Medal Set
Not sure that is accurate. If deficit spending continues than you are kind of correct. The election absolutely changed the fundamentals at the moment.
Record gold-buying by central banks and record debt in every Western country are pretty fundamental to gold and record silver purchases by India & China with a somewhat limited supply in a small market like silver are also pretty fundamental to pricing. None of that has changed.
Deficit spending is unavoidable, and even if it weren't, the economic pain involved in raising interest rates high enough to stop inflation will keep legislators from doing the right thing. Any question on cutting back government spending is likely to be sabotaged because of the incestuous relationship between government and special interests. Same as always.
The idea that cutting regulations and increasing energy outputs will result in a big turnaround for business and better economic conditions can be easily overwhelmed by the debt spiral that's already been out of control for decades. It's too late to control the outcome, in my opinion.
A good starting point would be to scrap the idea of debt being the basis for money. Putting a select few bureaucrats (the Fed and Treasury) in charge of money creation, instead of a market-based system gives unelected bureaucrats too much power and is 100% guaranteed to fail - it's only a matter of time. No system will ever be perfect, but many of the Founders were educated students of governance, and they had it right in terms of what should constitute money.
The election may have changed some fundamentals such as border control, tariffs, tax policy, foreign policy, and criminal justice but even those things remain only as talking points and implementation isn't the same thing as a stated political platform that is designed to get one elected.
I knew it would happen.
Gold will continue to react to effectiveness of monetary policy. With a Congress that spends like a drunkin sailor and their own personal central bank with an unlimited supply of paper and ink to fund them, gold will not suffer. Effectiveness of monetary policy takes years to turn around. Gold will continue higher.
Natural forces of supply and demand are the best regulators on earth.
If you read this article by AEP in the UKT, it shows that many of the factors that used to indicate falling gold prices are now coincident with a RISING gold price.
https://www.telegraph.co.uk/business/2024/11/05/golds-mystery-rally-forewarning-fiscal-ruin-global-dystopia/
Since wed am, Locally , i have had a lot of sellers cashing in taking profits.
One major firm I deal with , told me same thing