What is the bears case for PM's
edmundfitzgerald
Posts: 4,306 ✭✭
What are some of the bearish scenarios for PM's. Thanks.
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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
Knowledge is the enemy of fear
Dollar revaluation.
Housing Boom.
Higher taxes on PM sales.
PM confiscation.
....and last but not least: President Ron Paul.
Exit bunker, enter Matrix. LOL
Answer that, first.
HEDGE BETS get margin calls due to changing margin requirements.
govt laws regarding metal investment change. REMEMBER, the current attempt is to make metal investment UNPATRIOTIC. That's a mild tipoff to tread carefully.
You saw this with the 1099 reporting requirement that got shot down. Very few even saw how that slipped into the heath care legislation.
They start raising interest rates.
I could go on...but remember....................
when 2,3,4,5 of these happen withing a week or two....your metal investment valuation will PLUMMET. 10%, 20% 30% almost overnight and very few will see the perfect storm brewing. That will set off a minor sell off that will further weaken the market.
If you pay attention to everything going on instead of just listening to the bulls and their promotion tirade, you might see the clouds on the horizon and exit before the punishment begins.
It can happen, it will happen.
<< <i>How do you know there are any bearish scenarios for PMs?...
Answer that, first. >>
Because the price has been known to drop in the past.
Exit bunker, enter Matrix. LOL
Building straw man arguments like "Gold will drop when the Fed stops printing money out of control" really DOES make it sound like a bubble. You're basically saying "Gold will go up for ever and ever" and we know that's not true. I can't tell you when, and I can't tell you by how much (1-3% fluctuations don't really count, IMHO) but gold may go down 10%, or it may stay flat for a long period.
I'll tell you who didn't. The ones who have been scarce around these parts recently or those who say the drop didn't mean anything to them. A lot of people posting several months ago never had gotten whacked. Nasty Bruises don't heel quickly. They'll be smarter next time.
Still not much silver in the stores that I've observed. It doesn't look like this drop brought out the sellers. Maybe the next punishment phase will shake a little loose.