What if gemstones were like PMs?
BigMoneyLewis
Posts: 194 ✭
How well would this fly ? Imagine this. Mr smith goes into a jewlrey store
and pics out a $ 3,000 diamond engagement ring. Goes back a week latter
to actually buy it, and finds the price is now $ 1,875 .
The store owner explains to him that the spot price of diamonds went down the
commode this week. No doubt the would be ring buyer is perplexed and confused.
He will try to rationalize this by wondering, hmm, they must have discovered a
huge stockpile of millions of diamonds somewhere in the world a few days ago.
The store owner will have to explain that the price drop has nothing at all to do
with the supply of diamonds, or the demand , but is actually a result of
people no longer seeing a need to hold paper diamonds because the U.S dollar
gained .001 % on the ero .
No doubt the new ring buyer will be smiling AND scratching his head as he walks out
with his bargain.
Greg
The point I am trying to make is why do we allow things that we know are valuable,
and precious , to jump around in price all over the place, just because some "investors"
who will never actually hold these valuables in hand , decide to sell something they
never had possesion of , because "they" felt like the US dollar is making a "rallye"
aginst another currency, or because they heard that their co-worker saw some guy on
CNBC sneeze and it sounded like he said "bannana prices expected to fall , sell your PMs
now"
We need to have a seperation between the price of physical silver (which will be based
on physical supply and demand)and that of paper.
Let those idiots play their paper games while the rest of us, who actually are smart enough to
hold physical , and have went to great lengths and sacrifices to aquire physical , can actually see
our investments do what they can do .
and pics out a $ 3,000 diamond engagement ring. Goes back a week latter
to actually buy it, and finds the price is now $ 1,875 .
The store owner explains to him that the spot price of diamonds went down the
commode this week. No doubt the would be ring buyer is perplexed and confused.
He will try to rationalize this by wondering, hmm, they must have discovered a
huge stockpile of millions of diamonds somewhere in the world a few days ago.
The store owner will have to explain that the price drop has nothing at all to do
with the supply of diamonds, or the demand , but is actually a result of
people no longer seeing a need to hold paper diamonds because the U.S dollar
gained .001 % on the ero .
No doubt the new ring buyer will be smiling AND scratching his head as he walks out
with his bargain.
Greg
The point I am trying to make is why do we allow things that we know are valuable,
and precious , to jump around in price all over the place, just because some "investors"
who will never actually hold these valuables in hand , decide to sell something they
never had possesion of , because "they" felt like the US dollar is making a "rallye"
aginst another currency, or because they heard that their co-worker saw some guy on
CNBC sneeze and it sounded like he said "bannana prices expected to fall , sell your PMs
now"
We need to have a seperation between the price of physical silver (which will be based
on physical supply and demand)and that of paper.
Let those idiots play their paper games while the rest of us, who actually are smart enough to
hold physical , and have went to great lengths and sacrifices to aquire physical , can actually see
our investments do what they can do .
0
Comments
pulled the ring and told the customer he already sold it. That's what alot of store owners have done.
the price by controlling the supply of the diamonds it
mines. It is in fact , a monopoly.
Precious Metals are manipulated by both National
Reserve Banks as well as various traders and trading
houses. The greater the price fluctuations the greater
the profit. The Federal Reserve Banks do not like to see
PMs go up and will periodically manipulate the metals to
stabilize national currencies.
Camelot
Camelot
<< <i>With precious gems like diamonds, DeBeers controls
the price by controlling the supply of the diamonds it
mines. It is in fact , a monopoly.
Precious Metals are manipulated by both National
Reserve Banks as well as various traders and trading
houses. The greater the price fluctuations the greater
the profit. The Federal Reserve Banks do not like to see
PMs go up and will periodically manipulate the metals to
stabilize national currencies. >>
Well put Bear.
<< <i>With precious gems like diamonds, DeBeers controls
the price by controlling the supply of the diamonds it
mines. It is in fact , a monopoly.
Precious Metals are manipulated by both National
Reserve Banks as well as various traders and trading
houses. The greater the price fluctuations the greater
the profit. The Federal Reserve Banks do not like to see
PMs go up and will periodically manipulate the metals to
stabilize national currencies. >>