How can this be?

coolest

How can the falling stock market, and a seemingly high demand for PM's, combine to give sharp drops in the price of PM's?

Bubblehead

I'm also confused as heck over the same subject!

Smittys

makes no sense but thats why I keep buying I have no sense

ttown

It's called the paper market. You don't have to own any silver just short it to control the price, at least on paper. That's why your seeing two different prices now, one for physical silver and one for paper silver. When the house of cards for paper silver falls it will be the end of the game.

HonoluluDude

Anything paper is being de-leveraged. With the way the gold mining indexes have hit new lows, $650 (paper) gold isn't out of the question.

sonde79

looks like the big man doesn't want gold in the hands of the individual. this is nothing new.

HonoluluDude

<< <i>looks like the big man doesn't want gold in the hands of the individual. this is nothing new. >>

"The Man" are probably the ones hoovering up the physical market. Joe Blow is stuck in the stock market, holding the bag.

bluelobster

Other than the obvious conspiracy to keep gold and silver low, it might be that we are in the middle of one of the largest capital destructions of our time, which some might even say is slightly deflationary. crazy as that sounds.

ziggy29

<< <i>Other than the obvious conspiracy to keep gold and silver low, it might be that we are in the middle of one of the largest capital destructions of our time, which some might even say is slightly deflationary. crazy as that sounds. >>

It is deflationary, but when compared to the trillions of fiat dollars and euros that will be printed to shore up the balance sheets, I suspect deflation won't be the result.

BlackBeard

<< <i>It's called the paper market. You don't have to own any silver just short it to control the price, at least on paper. That's why your seeing two different prices now, one for physical silver and one for paper silver. When the house of cards for paper silver falls it will be the end of the game. >>




...and that's when silver takes off for real. I'm not real concerned with the paper price, I'm still in the accumulation stage. I don't mind holding it for a while. It's just a matter of time, but silver will rise significantly IMHO. The paper price is accurate for paper silver. I prefer mine made out of metal.

GoldenEyeNumismatics

Everything follows oil.


and didn't silver reach its lowest price per ounce during the Great Depression?

shorecoll

There's probably a few million ounces of gold and even more silver in all the blown up hedge funds. With the blood in the water as these guys try to destroy each other, there is no economic sense to any of this. They are selling what they can sell, at whatever price, and running for cover. Remember, they're still playing with other people's money, even though their own has taken a hit.