Watching the trainwreck called PM's

Manorcourtman

LIVE METAL PRICES
9/10/2008 2:25:58 PM EST
Bid Ask Change
Gold $756.00 757.50 (-30.60)
Silver $10.8300 10.9000 (-0.7550)
Platinum $1,188.00 1,198.00 (-64.10)
Palladium $227.00 232.00 (-9.00)
= Offer Side vs. NY Close.

I find it hard to not watch this market on an hourly basis since I'm free from PM's and have no horses in this race. Did this sort of nosedive happen this quickly during the Hunt Brothers debacle? This market is just unbelievable!! Anyone believe we could see sub $500 gold and sub $5 silver again?

fc

well i can tell you silver, if possible, would stop at around 7 an ounce due
to the miners having to make some sort of profit... when you consider they
can only get the stuff out of the ground at 3-5 dollars an ounce.. right?

rgCoinGuy

It's the effects of the Large Hadron Collider sucking everything down.

cohodk

Nibbling on SLV in the 10.60s.

BBN

I doubt we'll ever see sub $500 gold. Of course I thought that sub $900 was a thing of the past. Gold holders are definitely fortunate that gold didn't drop at the same rate as plat and silver. Otherwise gold would be around $500-550. Platinum just bloated up too high, too fast.

Bayard1908

<< <i>I doubt we'll ever see sub $500 gold. >>



Why? It was under $300 not too many years ago. Why does gold have value in the first place?

fc

<< <i>

<< <i>I doubt we'll ever see sub $500 gold. >>



Why? It was under $300 not too many years ago. Why does gold have value in the first place? >>



someone has to dig it out of the ground and they want to make
a profit on their time...

someone out there wants gold and is willing to pay the people doing
the mining to find it.

supply and demand...

seems the recent problem was sheer speculation drove the price up
to high levels.. and now that speculation is unwinding.

Bayard1908

>>

someone out there wants gold and is willing to pay the people doing
the mining to find it. >>



I understand that there is a mining and refining cost; however, there's really no compelling reason that gold be removed from the ground in the first place. People seem to think it's intrinsically valuable for some strange reason.

fc

<< <i> >>

someone out there wants gold and is willing to pay the people doing
the mining to find it. >>



I understand that there is a mining and refining cost; however, there's really no compelling reason that gold be removed from the ground in the first place. People seem to think it's intrinsically valuable for some strange reason. >>



well less then 100 years ago it did make up our money supply. gold,
silver and copper.

it has uses in industry that created an enormous demand for it. just
think how much copper was used in electric lines and how much gold/
silver was used in electronics.

people like it for its qualities. ductile, gold is resistant to oxidation, and etc... jewelry to get the babes...

ancient history shows it was used as money.. so a lot of momentum
there.

many reasons. i am probably forgetting a few key ones that others
will mention.

cohodk

Nibbled on a little more at 10.27. Trading after hours at 10.60.

Quite an impressive selloff.

roadrunner

I understand that there is a mining and refining cost; however, there's really no compelling reason that gold be removed from the ground in the first place. People seem to think it's intrinsically valuable for some strange reason. >>

The same could go for diamonds and other precious stones as well. And in the same argument you could add rare coins, art, etc. Why are those valued? Why is gold valued?

Gold has a number of properties that make it a desired metal (resistance to corrosion, shiny appearance that doesn't dull, beauty, etc.).

If you look back to the 1970's when king fiat was first instituted, you'll find that people went nuts over gold and silver. So even though there was no "compelling" reason for the value, lots of people felt there was intrinsic value there....enough to bring the value from $35 to $875. And similarly since 2001, apparently that intrinsic value concept has returned after a 20 year slumber.

roadrunner