| Author |
 Replies: 18 / Views: 3,064 |
Page 2 of 2
|
|
|
|
Pillar of the Community
United Kingdom
1685 Posts |
|
|
Pillar of the Community
United States
4008 Posts |
Quote:
Greece? Don't they have the same GDP as Indiana? Yes, they do... but they also have borrowed many billions of dollars / euros and there are many more billions written as Credit Default Swaps. This is what happens when derivatives go bad. Just as the earnings are multiplied when things go well, so are the losses when they go bad. This is why the ECB was falling all over itself NOT to declare the Greeks in default, even though they are, as that would have triggered the CDSs that would have clobbered several big banks, possibly starting a worldwide banking collapse. Ain't leverage wonderful?  As to gold and silver today, not hearing improving news on the Greece situation when it was expected plus some dollar weakness led to the improvements in PM prices. |
|
Pillar of the Community
United States
3670 Posts |
I would not put much weight on the minimal climb, as this is the second time silver past 34 recently, soaring up to 34.50 or so, while gold got back up around 1750 again, before the late day typical minor pullback an flat line....
When silver passes 35 bucks an oz., and gold flirts with 1800 again, then I think we are stepping up to dare I say, a new level....
|
|
Pillar of the Community
Canada
3692 Posts |
Well, if we're talking 1-2 weeks ago (can't remember the exact day) when your president gave his state of the union address, the next day metals just went crazy. 4 years is enough for anyone.
|
|
Valued Member
United States
67 Posts |
Could the sanctions with Iran impact PM prices.
|
|
Valued Member
United States
299 Posts |
ANYthing that causes uncertainty affects prices of PMs
|
|
Pillar of the Community
United States
648 Posts |
|
|
Valued Member
United States
264 Posts |
@Silverhawk74 Excellent point about these new 1st quarter, 2012 PM levels. Hold on, the rollercoaster ride is going to be fun this year!
|
|
Pillar of the Community
United States
4008 Posts |
Quote:
ANYthing that causes uncertainty affects prices of PMs True enough. Unfortunately, those who worry so much about certainty vs. uncertainty, do not seem to understand that certainty is basically just a comfortable illusion. We *think* that we know something, therefore we are more comfortable with the unknown that is the future. In fact, there IS NO CERTAINTY and there never has been any. Therefore, its loss should not be a big deal. Somehow, however, it still seems to be. :-/ |
|
Pillar of the Community
United States
3670 Posts |
Silver is bouncing like a ball from 34.50 down to 33.50, and back up again and has been running that similar pattern for a week plus now, and gold has been bouncing back an forth from 1720 an 1750 or so during that time.....
It will be interesting to see if it continues up to the next level as fore mentioned say 35 bucks plus, or if it tanks back down into low 30's or dare I say high 20's once again, which would be real unusual for this time of year an all, as it should continue the steady rise, and most investors seeing all this economic recovery as more smoke an mirrors perhaps.....
|
|
Pillar of the Community
United States
667 Posts |
To me silver has shown a very strong gain and ability to go higher after everyone had given it up for dead last month. I believe this level will hold for some time. $35 is not that far off in the near future.
In the past 30 days it has climbed $4 dollars, while it does not appear to be much that is a large gain, very large. To put it in perspective if you had 1,000 ounces you made you made $4,000.
|
|
Pillar of the Community
United States
5863 Posts |
At 8:51 AM EST I got the following news alert: Quote:
Greek Political Leaders Reach Deal on Austerity Measures
After days of talks, Greek political leaders reached a deal on Thursday to support a package of harsh austerity measures demanded by Greece's financial backers in return for a 130 billion euro bailout. The deal is expected to unlock the bailout funding and prevent Greece from default. At almost the exact same time, silver and gold prices started climbing rapidly. I'm sure there's a connection, but I'll be darned if I know what it is... |
|
Pillar of the Community
 United States
1450 Posts |
I think the connection is that Draghi said they may drop rates. The UK also announced an additional 50 billion in QE. All that happened within about 5 minutes of each other. I don't know if Greece was the mover but I'm sure it was in the mix somehow.
|
|
Pillar of the Community
United States
4008 Posts |
Quote:
To me silver has shown a very strong gain and ability to go higher after everyone had given it up for dead last month. Hey... *I'm* someone and I haven't given it up for dead... not even when it pulled back to $26!  As to the European problems and their effect on PMs, THE problem as I see it is that none of these stop-gap band-aid fixes for debt problems addresses the cause of the problem... spending more than they earn. Yes, they can put off the day of reckoning by arranging for additional loans to pay off the current interest that is now due, but... so what? This is like a doc giving a cancer patient some aspirin and saying, "There you go, that will fix your headache". Maybe it will but it does zip to fix their biggest and worst problem! The simple truth of the situation is that a number of European countries, aka The PIIGS, have borrowed and spent more money than they can ever pay back. They desperately need to declare bankruptcy, renege on their debts, and THEN get their financial house in order for the future. True, they could not borrow any more money after that, unless they pay VERY high interest rates to get it, but so what? It was borrowing too much money that got them into this mess in the 1st place. If they can avoid that, no matter how the issue is forced, they will be much better off in the future. "Live within your means" is a golden rule in finance. Individuals MUST adhere to this if they want to be financially successful, but then so do nations. The sooner more of them realize this the better off we will all be. The US has huge problems in this very same area and the sooner we get our financial house in order the better off we will all be. There is no future when one is in the grip of unpayable debt. If we want our kids and grand kids to even have a future, we simply MUST do this. Yes, it WILL be painful but there is no longer any other choice available to us. The time for that has been well and truly squandered via all that can kicking nonsense.  |
|
Rest in Peace
United States
9104 Posts |
Quote:
Any ideas what just caused the huge jump in gold and silver? No, and neither do the experts. If they did, the factors were obvious, they should have had no trouble predicting the rise. |
|
Page 2 of 2
|
Replies: 18 / Views: 3,064 |
Page 2 of 2
|
First Page
Posted 02/07/2012 5:22 pm
