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Why the metals are dropping.

topstuftopstuf Posts: 14,803 ✭✭✭✭✭
in Precious Metals
The economy was saved by the Treasury adding liquidity by backing the money with some bad mortgages and just general bookkeeping shenanigans that rob Peter to pay Paul but amount to essentially ....nothing.

Now the Treasury is going to scale back the stimulus of more "nothing" and try to get back to less "nothing" to back the US dollar.

Investors know that "less nothing" is far better than "more nothing" and so they are happy to begin buying stocks that have been boosted by great quantities of "nothing.' The "nothing' even replaced earnings which is understandable because it is easier to spend "nothing" than to earn money.

Since gold and silver are recommended as personal "insurance" and more and more people are opting to go without insurance because they have nothing to lose anyhow, it's only logical that planning for an "insurance" event is just silly.

Let's hope that 'nothing' goes wrong with this picture.

Nothing could be clearer. image

Comments

  • BAJJERFANBAJJERFAN Posts: 31,083 ✭✭✭✭✭
    We the willing, led by the unknowing, are doing the impossible for the ungrateful. IN FACT, we have done SO much with SO little for SO long that we are now qualified to do anything with nothing.
    theknowitalltroll;
  • hchcoinhchcoin Posts: 4,829 ✭✭✭✭✭
    Nothing more to say image
  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭
    Silver was trading under four bucks in the last 12 or 15 years. It also traded at close to $50. $19 is probably about right.
  • JulioJulio Posts: 2,501 ✭
    "Silver was trading under four bucks in the last 12 or 15 years. It also traded at close to $50. $19 is probably about right" MGLICKER

    Sure don't know what silver will do, but my gut tells me a buy below 20 is probably not a bad move. I actually bought a little a few days ago, 1st buy in a long, long time. Question is, when will it break 25. Take care. jws

    image
  • JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭


    << <i>"Silver was trading under four bucks in the last 12 or 15 years. It also traded at close to $50. $19 is probably about right" MGLICKER

    Sure don't know what silver will do, but my gut tells me a buy below 20 is probably not a bad move. I actually bought a little a few days ago, 1st buy in a long, long time. Question is, when will it break 25. Take care. jws >>



    jws------Question. Will you sell at $25 or buy more at $25?

    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......
  • JulioJulio Posts: 2,501 ✭
    "jws------Question. Will you sell at $25 or buy more at $25"? JustaCommeman

    I would surprise myself if I sold at $25.00, and shock myself if I did not add some. Gut tells me silver will eventually test it's old high; common sense tell me I don't have a clue when it will do it. Last run I sold 1/2 my holding, and have only recently added any to replace what I sold. One could say I'm in a lazy accumulation mode. Take care. jws

    image
  • BAJJERFANBAJJERFAN Posts: 31,083 ✭✭✭✭✭


    << <i>"jws------Question. Will you sell at $25 or buy more at $25"? JustaCommeman

    I would surprise myself if I sold at $25.00, and shock myself if I did not add some. Gut tells me silver will eventually test it's old high; common sense tell me I don't have a clue when it will do it. Last run I sold 1/2 my holding, and have only recently added any to replace what I sold. One could say I'm in a lazy accumulation mode. Take care. jws >>



    I'd probably sell at $25.
    theknowitalltroll;
  • JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭


    << <i>"jws------Question. Will you sell at $25 or buy more at $25"? JustaCommeman

    I would surprise myself if I sold at $25.00, and shock myself if I did not add some. Gut tells me silver will eventually test it's old high; common sense tell me I don't have a clue when it will do it. Last run I sold 1/2 my holding, and have only recently added any to replace what I sold. One could say I'm in a lazy accumulation mode. Take care. jws >>



    lazy accumulation mode-------------I can live with that : )

    FYI- I look forward to your posts

    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......
  • tneigtneig Posts: 1,505 ✭✭✭
    "Because they are less valuable?" Good time to start drinking again.....
    (I assume there are some guys in some secret board room ROTFL and pointing at us, regarding the question.)

    -I guess keep buying till you're broke.

    -When you need it you can sell it for less. So if the price is low, you won't have lost that much.

    -Oh, on a positive note: "If its on sale, its always a good deal."
    COA
  • jmski52jmski52 Posts: 22,869 ✭✭✭✭✭
    The silver market is running out of masochists, so all that's left are the ones who actually think that silver is money. You beat enough buyers up long enough, and they find somewhere else to play. The rest of us know better than to indulge in delusional wishful thinking.

    On the other hand, when the stock market rises to new highs, more income is taxable - and from the perspective of gov.con, that's all it's really about. Beat up on the metals just enough to keep fiat in the game, and rake the stock market over the coals for more tax revenue.

    Lather, Rinse, Repeat. Now, where have I heard that before?

    The question really is, do you want to help finance the fraud or just sit it out? So an ounce is "worth" a few less fiat dollars. Oh Rhett, what shall I do?
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • topstuftopstuf Posts: 14,803 ✭✭✭✭✭
    Looks like a bit more than the masochists affecting silver.

    silver glut


    I dealt in it too long and noted the performance of my customers too closely.

    I do not like silver.

    I do like gold. Gold has always been my choice for the money metal.
    Silver more like a date that is likely to go bad before the evening is over. image

    I own the junk but only as a portion of my stack. 80 gold/20 silver. Now I have to admit that a couple years ago that 20 took itself to about 35 but the strain was too much and it broke like a cheap watch. Like it always seems to do.
  • mikliamiklia Posts: 1,295 ✭✭✭
    acting like a coiled spring today. nice to see the positive action.
  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    acting like a coiled spring today. nice to see the positive action
    Head fake, don't believe the hype
    To forgive is to free a prisoner, and to discover that prisoner was you.
  • mikliamiklia Posts: 1,295 ✭✭✭
    perhaps, still nice to see though!
  • derrybderryb Posts: 36,837 ✭✭✭✭✭


    << <i>I do not like silver.

    I do like gold. Gold has always been my choice for the money metal.
    Silver more like a date that is likely to go bad before the evening is over. image >>


    Or just might rock your socks off before the evening is over. image

    Natural forces of supply and demand are the best regulators on earth.

  • jmski52jmski52 Posts: 22,869 ✭✭✭✭✭
    Prices are sliding toward 10-month lows, as supplies of the metal are set to outpace demand for the sixth straight year.

    Has anyone ever had reliable data on silver? It's just one of those things that defies honest reporting.


    Silver more like a date that is likely to go bad before the evening is over.image

    I set up one of my friends with a really foxy date the summer after my junior year in high school and we went on a great double date. He repaid me by offering up his cousin on another double date that same summer. Big mistake (on my part). I've had much worse dates than silver.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • coolestcoolest Posts: 2,281 ✭✭✭
    Well this morning I sold 1 trillion ounces of gold future contracts. The price of gold dropped by $50. I will wait til tommorow to sell another trillion onces. Isnt America great.
  • JulioJulio Posts: 2,501 ✭
    "FYI- I look forward to your posts". Commenman.

    MJ, back at you, your posts are a welcome addition to this forum. Take care. jws

    image
  • OperationButterOperationButter Posts: 1,672 ✭✭✭


    << <i>Well this morning I sold 1 trillion ounces of gold future contracts. The price of gold dropped by $50. I will wait til tommorow to sell another trillion onces. Isnt America great. >>



    I was hoping this was true. I wanted to make a few purchases and would welcome another $50 drop image
    Gold is for savings. Fiat is for transactions.



    BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
  • JulioJulio Posts: 2,501 ✭
    "I was hoping this was true. I wanted to make a few purchases and would welcome another $50 drop". OperationButter

    I often hear that refrain from many on this forum. Just wondering though, do they actually follow through and purchase. I do believe many get cold feet when it drops and then get excited and buy when it rises. Just my two cents. Take care. jws
    image
  • BAJJERFANBAJJERFAN Posts: 31,083 ✭✭✭✭✭


    << <i>

    << <i>Well this morning I sold 1 trillion ounces of gold future contracts. The price of gold dropped by $50. I will wait til tommorow to sell another trillion onces. Isnt America great. >>



    I was hoping this was true. I wanted to make a few purchases and would welcome another $50 drop image >>



    $150 drop would be better.
    theknowitalltroll;
  • OperationButterOperationButter Posts: 1,672 ✭✭✭


    << <i>"I was hoping this was true. I wanted to make a few purchases and would welcome another $50 drop". OperationButter

    I often hear that refrain from many on this forum. Just wondering though, do they actually follow through and purchase. I do believe many get cold feet when it drops and then get excited and buy when it rises. Just my two cents. Take care. jws >>



    I can only speak for myself, I buy the dips when I have enough cash that needs saving.

    Your thought is, for the most part, probably correct in most cases though. The human emotion in the market, the panic selling or the frenzy buying, that get the masses in the market create boom/bust cycles that all markets go through. People dont feel comfortable purchasing something that has dropped 5%, 10%, 15% in value over the short term as they think they have a higher probabality of losing money right after their purchase. This ideal also works the other way. People see prices rise 5%, 10%, 15% and get the feeling that they dont want to be left out. Think the housing bubble in 2005/6 or the tech bubble in 99/00. People thought prices were going to rise forever and if they didnt get in now, they will be priced out of the market forever.

    Nothing lasts forever, and there is no free lunch. I would hope our leaders/govt understand that, but that seems like wishful thinking...
    Gold is for savings. Fiat is for transactions.



    BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
  • luckybucksluckybucks Posts: 1,318 ✭✭✭
    Keep on stacking.

    Now is a good time to buy. My local coins shop has circulated Mercury dimes, and Walkers. There are some better dates still in the "junk" boxes. I am buying all of those better dates, along with the coins from 1916 to 1933 that grade Fine or better.

    I'm sure similar deals can be found at other shops as well.
  • derrybderryb Posts: 36,837 ✭✭✭✭✭
    Failure of precious metals to advance in the face of declining dollar strength does not bode well for the near term outlook of PMs. Expect further declines in the short term.

    Natural forces of supply and demand are the best regulators on earth.

  • OPAOPA Posts: 17,121 ✭✭✭✭✭


    << <i>Keep on stacking.

    Now is a good time to buy. My local coins shop has circulated Mercury dimes, and Walkers. There are some better dates still in the "junk" boxes. I am buying all of those better dates, along with the coins from 1916 to 1933 that grade Fine or better.

    I'm sure similar deals can be found at other shops as well. >>



    If I agreed with you, we'd both be wrongimage
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭


    << <i>Keep on stacking.

    Now is a good time to buy. My local coins shop has circulated Mercury dimes, and Walkers. There are some better dates still in the "junk" boxes. I am buying all of those better dates, along with the coins from 1916 to 1933 that grade Fine or better.

    I'm sure similar deals can be found at other shops as well. >>



    10 years ago you could buy those dimes for 30c and walkers for $1.65. How much you paying now? Dang inflation.image
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • tneigtneig Posts: 1,505 ✭✭✭
    Wow so it really is, Where you are on the spectrum of the price swing.

    -If you bought long time ago, generally its still a good investment for you.
    Counter: But you missed selling at the high so you lost.

    -If you read and believed all the hype about the growing use of silver and cost to mine, you bought a lot in anticipation.
    Counter: You are stuck with that decision for another decade.

    -If you bought and flipped along the way you likely sold for a profit or more than it is now. You only have what you have now.
    Counter: You are still stuck with what you have now.

    COA
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