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So was today's pullback in PMs...

notwilightnotwilight Posts: 12,864 ✭✭✭
in Precious Metals
..the result of the democrats losing the supermajority in the senate?

I don't want to start a political debate and if one breaks out I'll delete the OP. However, the loss of the supermajority could derail the healthcare reform which would eliminate trillions of deficit spending resulting in a stronger dollar. Was that the logic? I don't care which side you're on, or if you think it will affect the dollar. I just want to know if that's what the pundits are thinking. --Jerry

Comments

  • HalfStrikeHalfStrike Posts: 2,202 ✭✭✭
    That health care plan was front loaded so the spending cuts started first and later they gave more coverage. This gave the illusion of it reducing the deficit until its full effects came to pass.

    The move today may have been the blocking of this future spending and the reduced chance of higher inflation as a result.
  • tetradrachmtetradrachm Posts: 53 ✭
    I think that Chinese tightening had more to do with it. Chinese banks are being told to cut back on lending. If China is going to ease up on their growth, demand for commodities is going to weaken in the near term. Yesterday was a "risk off" day.
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  • OPAOPA Posts: 17,119 ✭✭✭✭✭


    << <i>I think that Chinese tightening had more to do with it. Chinese banks are being told to cut back on lending. If China is going to ease up on their growth, demand for commodities is going to weaken in the near term. Yesterday was a "risk off" day. >>



    Along with the drop in the Euro ... I don't think the election results had much if any affect on PM's.
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • PerryHallPerryHall Posts: 46,122 ✭✭✭✭✭


    << <i>..the result of the democrats losing the supermajority in the senate?

    I don't want to start a political debate and if one breaks out I'll delete the OP. However, the loss of the supermajority could derail the healthcare reform which would eliminate trillions of deficit spending resulting in a stronger dollar. Was that the logic? I don't care which side you're on, or if you think it will affect the dollar. I just want to know if that's what the pundits are thinking. --Jerry >>



    I doubt the election had anything to do with the PM correction but agree the pendulum is swinging back to a more conservative spending scenario.

    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

  • JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭
    I believe it contributed to the pullback. MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • CaptHenwayCaptHenway Posts: 32,128 ✭✭✭✭✭


    << <i>

    << <i>I think that Chinese tightening had more to do with it. Chinese banks are being told to cut back on lending. If China is going to ease up on their growth, demand for commodities is going to weaken in the near term. Yesterday was a "risk off" day. >>



    Along with the drop in the Euro ... I don't think the election results had much if any affect on PM's. >>



    I agree with both of you.
    TD
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • WeissWeiss Posts: 9,941 ✭✭✭✭✭
    China & Euro, or rather their effect on the dollar. We haven't had anything resembling fiscal responsibility since Clinton (Dem control of executive, Rep control of legislature).

    We are like children who look at print and see a serpent in the last letter but one, and a sword in the last.
    --Severian the Lame
  • JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭


    << <i>China & Euro, or rather their effect on the dollar. We haven't had anything resembling fiscal responsibility since Clinton (Dem control of executive, Rep control of legislature). >>


    China was part of the story. However, the dollar got a boost from the Brown effect which had a negative effect on the euro and pms. Considering that gold was at a tenious spot chart-wise any excuse needed to knock it down was there. It got sold hard along with the general market. Cascade effect. Today is a new day with new noise. MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Gold had already been in a downtrend from $1162 for 5 days before Tuesday's election results came out. The dollar had also just turned sharply upwards a couple of days before the election. That turn was also overdue as the dollar was oversold. The directions were already determined and gold was just waiting for a good "reason" (or as MJ aptly calls it...."noise") to bolt under the $1130-1142 support area. China's tough tightening "talk," election results, etc. no doubt each contributed something to the mix. Even if neither of those events occurred this week, something else would have popped to trigger the reason for the drop. A sharper move in gold's down cycle was due.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭


    << <i>Gold had already been in a downtrend from $1162 for 5 days before Tuesday's election results came out. The dollar had also just turned sharply upwards a few days ago. The direction was already determined and was just waiting for a good reason to bolt under the $1130-1142 support area. China's tough tightening "talk," election results, etc. no doubt each contributed something to the mix. Even if neither of those events occurred this week, something else would have popped to trigger the reason for the drop. To sharp cycle was due.

    roadrunner >>


    yeppers. MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • gsa1fangsa1fan Posts: 5,566 ✭✭✭
    Old timer said: " Market reacts on news today instead of SOUND fundamentals as in the past"

    I took this as a just wait and see approach.
    Avid collector of GSA's.
  • KonaheadKonahead Posts: 1,476 ✭✭✭


    << <i>

    << <i>China & Euro, or rather their effect on the dollar. We haven't had anything resembling fiscal responsibility since Clinton (Dem control of executive, Rep control of legislature). >>


    China was part of the story. However, the dollar got a boost from the Brown effect which had a negative effect on the euro and pms. Considering that gold was at a tenious spot chart-wise any excuse needed to knock it down was there. It got sold hard along with the general market. Cascade effect. Today is a new day with new noise. MJ >>



    I agree that there are many differenct factors in play and based on the charts this was expected. The question is will this be the real bottom or do we have move movement coming before it starts up again.
    PEACE! This is the first day of the rest of your life.

    Fred, Las Vegas, NV
  • jmski52jmski52 Posts: 22,829 ✭✭✭✭✭
    The debt bomb and the derivatives mark-to-market accounting boondogle are still out there. The baby-boomers will be selling stocks eventually, if not sooner in order to fund their retirements (or what's left of them). I expect liquidations like yesterday from time to time, and each time, I also expect precious metals to come out ahead in relative terms. Just one man's opinion, of course.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • moonshinemoonshine Posts: 1,039 ✭✭
    it's crazy tho how it has been boomeranging up and down, up and down .... I am getting dizzy.
  • cohodkcohodk Posts: 19,109 ✭✭✭✭✭


    << <i>

    << <i>China & Euro, or rather their effect on the dollar. We haven't had anything resembling fiscal responsibility since Clinton (Dem control of executive, Rep control of legislature). >>


    China was part of the story. However, the dollar got a boost from the Brown effect which had a negative effect on the euro and pms. Considering that gold was at a tenious spot chart-wise any excuse needed to knock it down was there. It got sold hard along with the general market. Cascade effect. Today is a new day with new noise. MJ >>




    Exactly.

    The Euro takes its direction from the dollar.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

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