Home Precious Metals

What if gemstones were like PMs?

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 .

Comments

  • If that jewelry store owner was anything like my local B@M owner, he would have just
    pulled the ring and told the customer he already sold it. That's what alot of store owners have done.

  • BearBear Posts: 18,954 ✭✭
    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.
    There once was a place called
    Camelotimage
  • BearBear Posts: 18,954 ✭✭
    Double post deleted. Sorry.image
    There once was a place called
    Camelotimage


  • << <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. image
  • ebaytraderebaytrader Posts: 3,312 ✭✭✭


    << <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. >>





    image
  • BECOKABECOKA Posts: 16,957 ✭✭✭
    So you are saying set an arbitrarily high price like diamonds have for consumers and let the investors/dealers trade away at prices lower than what we can get it for? image
  • trozautrozau Posts: 3,455 ✭✭✭
    meh!
    trozau (troy ounce gold)
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