Healthy bull market correction

morgansforever

With the S&P giving the U.S. credit rating a "NEG", isn't it just a matter of time before
PM's explode like never seen before. This 10 - 15% pullback is just the start of another 10 year run??
How long can the FED keep PM's down? Ever try holding a basketball to the bottom of a 10 ft. pool?

Article from Kitco
Back up da truck

dontippet

I really don't think you can call this a pullback. Silver spot went down the last 36 hours. I haven't looked yet, but it is probably currently around last Wednesday's close price. So silver is actually up since last week. I hardly call that a pullback.

morgansforever

<<I really don't think you can call this a pullback>>

I here ya, just a little excited, in the game deep.
I see more of a drop, then shooting back up again, blasting through $50.

JCMhouston

If you listen to the people that sell PM's (and the usual old bugs) this is the time to continue buying, prices can only go up, hyperinflation just around the corner, Fed out of options, world is running out of silver and gold.

If you listen to the banksters (JP Morgue for example) sell, sell, sell. PM's in a bubble, imminent collapse, more silver anf gold available than we know what to do with, put your money in stocks and T-bills.

The real answer may actually be somewhere in the middle of the two extremes (as is often the case in anything). In 10 years we may well look back on the 2010/2011 silver rush and everyone will say it was obviously a bubble caused by investor panic. On the other hand the Fed may run out of paper to print before the economy actually gets turned around and they can start reinflating, then we'll be talking about the good old days when silver was only $50/ounce.

You have to keep in mind that only a very small percentage of people in the world actually understand anything at akll about economic theories and practical application, a tiny tiny little percentage. The great majority only understand how much a Starbucks Frappacino costs, stuff is cheap at Walmart, and whether they have a job or not. These people watch the Bernank on TV and, well, he seems like such a smart guy doesn't he? And what about those really smart banksters at the JP Morgue that were on TV last night telling us how good things are going to be? All they need to do is keep the unwashed masses believing that things are getting better and they will indeed get better, mass psychology does work, it's been proven many times over the course of civilization.

As many know I got out of silver over the past month, but I still add high grade gold bullion coins when I can get them at a reasonable price over melt. But I have absolutley no idea what is really going to happen, I'm just taking my profits on silver and redeploying that money to other investments for the time being. If silver goes to $100/oz I won't have any regrets, I can live with the profits I made and not get greedy.

derryb

Serious investors quit paying attention to S&P. It was only a verbal warning, not a change in credit rating. US is still top of the line, AAA. Now how any reputable credit rating agency could call the US's current financial condition the "best there is" is beyond me. I'm convinced they are all in bed together.

What is going to happen? Washington is going to continue to allow the FED to destroy the dollar. Washington will continue to spend more than it has. Wall Street, with Washington's assistance is going to continue to bleed the middle class of it's wealth. PMs will continue to be safe haven, even more as the sheeple wake up to what's going on. PMs are really not about profit, they are about protecting and maintaining value of your holdings. They make inflation irrelevent.

Wall Street wants your money in equities, not in PMs. They can take your money via trading losses (they control the markets). They can't take your gold or silver. They can try to control the price of your PMs, but only temporarily.

morgansforever

Thanks for the indepth insight JCMhouston, and derryb.
It's almost like you have to go with your gut, and forget what you here on the tv.
Banks n Wall Street were bailed out, they didn't learn a thing, and will screw up again, right?
Nothing was learned. Would the economy be better off if they just failed? No one bails me out of anything.