What's going on with PMs?
SilverEagles92
Posts: 6,787 ✭
I'll admit, I'm somewhat of a newbie when it comes to strictly PMs. I get the whole coin thing, but straight bullion is kind of new to me.
What's going on with the price of silver and gold lately? A couple of months ago, both were at all-time highs. And, this morning, silver was under $13 again. What gives? Is the USD just "strengthening?" Does it have to do with nat. disasters like Gustav? Something else?
What's going on with the price of silver and gold lately? A couple of months ago, both were at all-time highs. And, this morning, silver was under $13 again. What gives? Is the USD just "strengthening?" Does it have to do with nat. disasters like Gustav? Something else?
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History of the US Constitution Coin Set
There will be days when up is down and black is white. To make any sense at all, you have to use your own perspective and have a basic understanding of the economy and banking.
I knew it would happen.
In my opinion, if you're running toward the U.S. Dollar thinking that it is an exit, that light at the end of the tunnel may well be a locomotive.
I knew it would happen.
<< <i>Also, you're right that the USD is strengthening, and a lot of speculators who piled in on the way up are running for the exits now that momentum has turned.
In my opinion, if you're running toward the U.S. Dollar thinking that it is an exit, that light at the end of the tunnel may well be a locomotive.
Unfortunately, the fall of the USD has a lot more room to run.
A natural disaster of sorts. Hurricanes PPT and JPM for starters.
Other than the trader mentality to push one market and then another, there has been no repair made to the US dollar over the past few months. Sure the price is going back up. Could somebody please post one item repaired in the legs of the US dollar that is without a doubt beyond manipulation? I'm still looking....
roadrunner
<< <i>Also, you're right that the USD is strengthening, and a lot of speculators who piled in on the way up are running for the exits now that momentum has turned.
In my opinion, if you're running toward the U.S. Dollar thinking that it is an exit, that light at the end of the tunnel may well be a locomotive.
They're not necessarily running toward the USD, but they're certainly running away from overheated commodities. And I think anyone heavy in pm's has already met the locomotive.
<< <i>It's a game that's being played many levels over our heads, and we will always be at a distinct disadvantage in terms of the short term.
There will be days when up is down and black is white. To make any sense at all, you have to use your own perspective and have a basic understanding of the economy and banking. >>
I think if many PM bugs are honest, or could see clearly, free of conspiratorial dogma, for a fleeting moment, they'll realize it's a game played IN "our" heads, not over them......PMs and other commodoties are dropping because the balance of the greed/fear investment psychology has shifted to fear over global contraction and slow down., from inflation and a weak dollar at least for now, nothing stays the same forever and psychology will always change........But, It is not some dark nefarious entity or entities trying to rob poor PM bugs of $50 dollar silver.
PM bugs can be honest and see what they see without attaching to conspiratorial dogma. Why is it that when PMs are going up, people get criticized as "hoping for disaster" (even if they are not) but when PMs are going down, it's "all in their pointed little heads"?
There's no doubt that the psychology has shifted. What we disagree over is whether or not THAT is rational. If deflationary pressures win, it will be over Bernake's best efforts, and it will be due to a worldwide deflationary event. That could very well happen. If that does happen, the question in my own mind is whether the U.S. will be solvent and whether there will be any trade taking place at all. Since the U.S. isn't solvent now, and since trust and public confidence is a major factor in whether or not a currency remains functional, I fail to see how the dollar can remain strong in a deflationary panic. At some point, the blinders will be off.
Hey, anyone can be wrong in their analysis but I don't go around calling dollar-lovers "poor ignorant sheeple." Touche'
I knew it would happen.
I'm not calling anyone sheeple, everyone is entitled and will always have there own opinions. All of the markets we trade are created by and traded by all of us humans and it is ALL of our pointed little heads or more correctly, what's inside them that make a market. I own some pms as a small percentage of my assets and have been more bullish on metals and other commodoties in the past And to be clear there are no dollar lovers on this board, that I have ever seen, just some who try to let the market tell it's story, as opposed to overlaying our own preconceived notions on how a market or markets should trade, which from my experience is a problematic way to invest and protect a families nest egg.
Historically, since gold floated free, oil and gold have a 80% to 90% correlation, depending on the time frame being looked at. Figure out where oil is going, odds are that gold will follow. Oil is a far bigger market.
Silver has been hit especially hard because it is an industrial metal. Recession fears may mean a big slow down in demand for industrial metals.
Knowledge is the enemy of fear
bluelobster, "once was a time" that I stuck to a diversified portfolio. The question will be whether it's better to accept a guaranteed loss within a diversified portfolio of deflating paper assets or to avoid playing the game in the first place by removing your nest egg from the game entirely by putting it into deflating pms.
I contend that nobody knows what world events are most likely to occur next, but that the PPT knows a larger portion of what is likely to occur next than the man on the street. The reason that they know more is because they are calling some, but not all of the shots. That's not conspiracy; that's just the way things are.
I knew it would happen.