Yanked The Rug Out From Under Silver An Gold Once Again....

Silver is more susceptible to the machinations of manipulation, being a much smaller dollar value market than gold, but my guess is that silver will peek just below $30 before moving back up into the $36-38 range. By the end of the week we could see the sub-$30 price but probably only for a very brief period... like it did when it touched $26 a couple of weeks ago. That was not a closing price for the day but an intra-day price. It went by so fast that I didn't have any time to make a buy.

As to gold, yeah, I could see it move down into the $1640 area but probably not much below that.

I find platinum a lot more interesting than gold at the moment. If I were to invest in some 1/4 coins, they would by platinum and not gold.

As you all know, gold has gone below $1700. Gold is no longer in the minor uptrend as it has been for the last several weeks. Now that the minor uptrend has been broken, I can project what I think will happen for the next several weeks.

So, here is a weekly gold chart for the last 3 years and some comments.



I expect that gold prices will oscillate between the red and black lines until at least the end of the year. Sooner or later gold prices must go under the black line or over the red line. Once prices have significantly gone past one of the lines, I expect prices to continue in the same direction for several months.

If prices break over the red line I would not expect them to trend below the black line without another price spike. The opposite is expected if the black line is broken.

Considering the strength of the black line versus the red line (3 years against 2 months), I think the black line will hold until at least another run has been made at the $2000 mark. After that, it is anyone's guess.

As best that I can tell, the intersection of the lines is around March of next year. Therefore prices could become more stable as we get closer to the intersection. However, the closer we get before breaking out, the more likely that the volatility will explode one way or the other, similar to when you wind up a spring tighter and tighter.

Note that currently the black line is at about $1520, over a hundred below current prices. That means it is entirely possible that we could see around $1550 in the next couple of weeks.

Indeed. In fact, it is anyone's guess BEFORE that as well.

Watching the 'experts' on TV, such as CNBC, they seem to be completely befuddled by what's going on; the traditional reverse actions of PM's to equities appears to be over. Tough to predict anything these days, I guess, except volatility.

In the late 70's and early 80's you had other ways to make money by investing your money. I had CD's at that time that yielded over 17% IN A YEAR! You have zero return on bank investments. The only reason Gold and Silver are taking a hit right now is through a " flight to safety in the US Dollar". Give me a break. The economy is NOT going to get better because WE HAVE NO INDUSTRY AND THE JOBS ALL MOVED AWAY! Consumers are in debt ( unsecured debt at that ) up to their eyeballs. Up until the 70's wages had risen for a hundred and fifty years. That stopped when technology replaced workers, and US companies were forced to move operations offshore to compete. If you think there is a solution to our economy's woes then you are badly misinformed. There is no solution because there is no way to raise funds to pay our debt because THERE IS NO ONE LEFT TO TAX. They must dilute and print to pay for this top-heavy government that has grown. The average wage of a Federal employee is now over $100,000 dollars per year. Where are they going to get the money to pay them while covering their health insurance for life? Most of them will receive more yearly pension income than they made when they were still " working ". Why, print more, of course! Anyone who is counting upon a turn-around in this economy either has their head buried in the sand or took a few too many acid trips. Period.

The so-called self-anointed "experts" are incredibly good at explaining what happened but not worth a hoot at explaining what is going to happen. These are, after all, the very same people who are still in denial about PMs... and this after gold has ripped the stock market up one side and down the other for the past 10 years. You can bet that if the stock market had gold's returns for the past 10 years, they would be jumping up and down and screaming their heads off about it. They mention investing in gold only in passing these days and only get animated about it when gold is down a few dollars on the day. Experts? Hardly. Cheerleaders would be more like it.



Do they NEED to work? I don't know. I would have to know them and their finances to answer that question. Not everyone who works does so because they need to work. Some people enjoy their work enough that they do it for the happiness that it brings them. I felt that way about my job at one time. When the job changed, it became time to give it up and I did. For the last 5 years that I worked, however, I did not need to work.



One could argue just as easily that the 30-60 to 1 range is the anomaly and that something in the 15-20 to 1 range is more common historically. In fact, there have been a few times when the ratio was as low as 10 to 1. One can only wonder what the G/S ratio would be if a free market without government intervention or bankster tampering were allowed to actually set both gold and silver prices. If you look at the current production of gold vs. silver ounces, you will see that the ratio is about 9.4 ounces of silver for every ounce of gold. My question would be, "With that production ratio how long can a finished product cost ratio of between 30 and 60 to 1 be maintained?".

It would be good to consider that silver is mined, refined, and mostly consumed in various industrial processes. An increasing amount is going into bullion coins and bars. There is no longer any huge above ground silver hoard these days. Gold, however, is mined, refined, and then either worn or stored in a vault somewhere. A bit is consumed by the electronics industry but all else is either made into bars, coins, or jewelry. Because of this, there is quite a lot more above ground gold than silver. Given supply and demand issues, such a situation should be putting upward price pressure on silver and / or downward price pressure on gold. Yes, these issues are more complex than just this but they do have an influence on prices.



My in-laws invested their life savings in US Treasury bonds at 15.5% interest back in the late 1970s. When Reagan came in and the Fed began cutting interest rates, the value of those high interest rate bonds soared. They made a LOT of money from them, which is why my mother in law always thought of that period of time as "the good old days".

As to today's bank rates... they are not zero but they might as well be. Most are in the 0.5-1% range while government inflation calculations show inflation to be in the area of 3.5%. REAL inflation on everyday purchases, however, is about triple that... unless you can live without food or fuel, of course.

OK

If they have a half million dollar portfolio, it has to double for them to make $500,000. If they can find 10,000 suckers to pay them $50 for their advice, the same profit is guaranteed.

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