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harrison2
Pillar Of The Community
Mexico
1161 Posts
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When I look at the silver chart it is more obvious than than the gold chart...but silver was heading up big time until March 14, 2008. That was befor the financial meltdown in the fall, but something happend that day to break the trend. Was it an adjustment in margin requirements?
Does anyone know what happened on March 14, 2008?
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Pillar Of The Community
United States
3394 Posts |
Everything collapsed right, the beginning of the 2008 market housing crash correct?
Gold got yanked down to 1000 per oz. in the under tow as did silver....
Market has been losing some numbers as of late I am guessing, esp with large commodities like oil for example. I put 51 bucks in my tank two days back, at 2.99 a gallon for the first time in months. I NEVER fill up, minus gas being under 3 per gallon. Otherwise I nickel an dime 10 bucks at a time....
This may seem foolish to most, but I will not buy large amounts of their high dollar gas when it breaches 3 per gallon and I hope they are taking note as many others who do don't drive an 18 wheeler for example does the same thing, and I am hoping those mass numbers shine through....
RIP BigFredd....
Edited by Silverhawk74
06/27/2012 1:10 pm
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Pillar Of The Community
Mexico
1161 Posts |
Hawk, was the housing crash happening in the spring of 2008?
I know this, I wasn't watching PMs at the time. Who on the board was?
I remember everything collapsing in October 2008...I was on the subway under Wallstreet and I remember seeing traders on the train looking depressed. But back in March? I looked through the old news and couldn't come up with any major events from that part of the year.
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Pillar Of The Community
United States
3394 Posts |
Before my time as well back then for tracking this type of thing, but I would guess a false spike may have occurred across the board perhaps in late spring or summer, before the big dip in the fall....
RIP BigFredd....
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Pillar Of The Community
United States
1173 Posts |
December 2007 was right around the start of the "official" recession, IIRC. I assume the housing debacle coincided with that date.
If you haven't noticed by now, I don't proofread veery well and I apollogize profusely. (;>D
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Pillar Of The Community
United States
2149 Posts |
I remember it has to do with the people buying houses that they can't afford and paying on interest alone, hoping they can flip it over days, weeks or ASAP. The housing market was at the height, all of a sudden there was problems with banks making bad loans that people were unable to pay back for the houses bought, and banks were stuck with houses that were over priced.
Eventually, the government step in and start to poking at how the bank operates and found out banks were giving out loans to whoever wants it, I think my friends called it Ninja loans.
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Pillar Of The Community
United States
4008 Posts |
I'm not sure what happened on that particular day but I do know that when there is a substantial change in any of the paper investments, those who hold them will often sell anything that has profits in it to raise cash. During a market rise, this is usually for covering their short positions. In a market dive, they are covering their long futures positions or buying more shares. Either way, they need some temporary cash quickly, so PMs tend to get sold off to raise that cash.
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Pillar Of The Community
United States
2149 Posts |
I think tomorrow will go up big time or another big drop for the market, news whether ObamaCare passes or not!
If it doesn't pass, it will go up and vice verse if it does... I don't know how this effect PM market?
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Pillar Of The Community
United States
2330 Posts |
Quote:
Hawk, was the housing crash happening in the spring of 2008? I am here to tell you now, it started in late spring of 07. I was working at a cabinet factory at the time when all of a sudden around the end of April our daily orders started falling at a rate of about 1% a day. That does not sound like much, but at the time, it was over 250 cabinets a week. We went from a high of 900 workers to just under 600 in a matter of 5 weeks. I saw the writing on the wall and had already secured employment else where and was pink slipped the very day I was going to give a two week notice. By the end of August, 2007 they had around 175 employees doing about 1/5th the numbers they were doing just 5 months earlier. The company is still operating with 120 people. They turned the AC off on the production floor in order to cut costs.
Pay your taxes! 12 million illegal immigrants are depending on it.
"A government big enough to give you everything you want, is big enough to take away everything you have."
Thomas Jefferson
Oldest Circulation Find ----- 1897S Barber Quarter
Oldest Detector Find -------- 1803 Large cent
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Pillar Of The Community
United States
4097 Posts |
The only thing I can remember happening around that time was gold crossing $1000 for the first time. Maybe some of the speculators in the gold market decided that $1000 was a good price to take profits at and that initial selling may have caused everyone in both the gold and silver markets head for the exits. Otherwise I don't know of any specific news that happened on that day causing the price to fall.
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Pillar Of The Community
United States
2326 Posts |
I think your date may be a little off. Silver was still trending upwards on March 14, 2008 (it closed at $20.57, which was up $0.42 from the previous week). The next few days saw it slip a little bit, but the big drop happened on March 20, when it fell $3.77 in one day and ended up at $16.80, and that's about where it stayed for the next month or so. So what caused it to happen? I can't find anything specific. In fact, I found this analysis that pretty much sums it up: Quote:
Gold and silver have taken a sudden drop during the past week. Many speculators are panicing and claiming that this is the end of the "commodity bubble". I don't think so. If you look at the fundamental reason behind the last 6 months rise in precious metals, you have to ask yourself....has anything changed? I don't think so. The Fed continues to pump liquidity into the market, the interest rate continues to decline, inflation continues to increase and the dollar continues to fall. That being said....if due to demand decreases oil drops sharply from here...there is a possibility that precious metals will follow. Precious metals will experience quite a bit of volatility and the gyrations may be tough to handle but I think due to the fundamentals that I mentioned above that a year from now precious metals will be much higher. |
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Pillar Of The Community
United States
1173 Posts |
Quote:
but I think due to the fundamentals that I mentioned above that a year from now precious metals will be much higher. But he was dead wrong. Not that anyone else guessed the recession would deepen, the market would ultimately lose over 7000 points and trillions of real dollars, housing prices would fall 50%+ in many urban areas, the government would continue its warring ways, the banks would be bailed out by Joe Taxpayer to the tune of untold billions, and the FED would quantitatively ease our currency into the depths of Hades.
If you haven't noticed by now, I don't proofread veery well and I apollogize profusely. (;>D
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Pillar Of The Community
United States
2326 Posts |
Quote:
But he was dead wrong. Not necessarily. A few years after this, silver nearly hit $50, and even now it is still at $27 (which is significantly higher than $16).
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Pillar Of The Community
United States
1173 Posts |
Please re-read the quote. He said silver and gold would be much higher in a year when it was actually much lower. I don't know how he could have been any more incorrect... for the reasons I stated. Other than the puppet-masters, few could have predicted the 2008 collapse.
If you haven't noticed by now, I don't proofread veery well and I apollogize profusely. (;>D
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Pillar Of The Community
Mexico
1161 Posts |
barryg, the link to the montlyfool was exactly what I was looking for. I tried looking up something similar on ZeroHedge, but they don't have archives going that far back. Really, what I wanted to assure myself of was weather or not there was some event tied to the market break like I have seen in the past two to three years.
Thanks again!
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Valued Member
United States
384 Posts |
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Does anyone know what happened on March 14, 2008? There actually is a very significant market event tied to that date and the days that followed. I am surprised it wasn't mentioned yet. The event you are looking for is the collapse of Bear Stearns : http://en.wikipedia.org/wiki/Bear_S...Morgan_ChaseEDIT: Looks like the way links work here has changed. Check out the section labeled: Fed bailout and sale to JPMorgan Chase
Edited by AlmostCollectible
07/07/2012 6:29 pm
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Posted 06/27/2012 12:29 pm
