What Happens To Gold And Silver Next? Look Out Below?

YUP, YOU DO QUITE WELL IN SHARING YOUR EXPERIENCE AND KNOWLEDGE FORM THAT LIMITED PERSPECTIVE OF TRADING IN USD ONLY

I agree that there is a down trend in place... I am very negative on gold at the moment. This time of year is normally when there is usually an upswing in the gold price...leading up to some some of the Asian buying times.

The trend, is your friend?

AU down a third in a few months

AG down half in a few months.

@domain555

yes thats pretty much how it goes, the famous saying.

Note that many of these commodities starting unraveling as early as march/april..... one other thing I forgot to mention earlier, notice how the last standing commodities are being swallowed up, and that is coffee. Its now started hard to move lower after attempting to make yearly highs.

I'm not sure deflationary is quite the term we're looking for. I think in an absolute sense it is deflationary. However; I tend to think it is more correctly thought of as "normalizing".

What I mean is that since 2002 when speculators were allowed in the Commodities market, the price of all, or almost all, commodities skyrocketed as commodities became detached from real supply and demand; and instead became "gaming tokens" in virtual world of Commodity trading.

At the same time wages stagnated as Corporations aggressively reduced wages as a profit optimizer.

The combination of higher prices and lower wages meant that eventually real world demand would finally have to be taken into account. For instance Fuel Consumption in the US is down, about, 45 percent from 2008. While domestic production has doubled in the same time period. Gas Companies got used to the "New Norm" of record profits and when demand slumped their answer was to maintain and even raise the pump price. This resulted in more consumer cuts which led to an increase in pressure to keep pump prices high. Eventually with increased domestic production; storage cost; and reduced volume, there was no choice but to lower prices. Ironically with this one market segment reducing prices we now have analyst predicting one of the best Christmas Seasons in recent years. And they are attributing that squarely to the drop in Pump prices.

The same thing can be said with Beef ( though I think there was also a real issue with grain that had a legitimate effect on the market). When I see the CHEAP hamburger at $4 a pound and T-bone for $12 a pound, I wonder who is buying enough of either to make it worthwhile even bringing in beef.

Lastly 75 percent of all retail businesses say that falling wages are a major reason for lackluster sales. Their solution? EVERYBODY but ME, please raise your wages.

In summery we have had 12 years of artificial price increases that have finally hit the real world "demand wall". I suspect we will see prices normalizing ( rather than deflating) as the Commodities continue to lose favor.

so its official.... QE is done and over , per FOMC minutes.

Golds reaction? To sell off. I wonder what other wild statements will gold bugs make to support why gold prices will stop going down,*laughing*,,, they cant say QE QE QE anymore as a reason for gold to go higher...

PM(s) pay no interest.

I like what you are saying yup7676. I'm new to buying silver, and only have 4 1oz rounds lol. I'm going to wait and see what it does over the next week, so I know if I want to buy now or set out for more of a drop. How will we really know where the bottom is, and how long until it starts to move up once it hits? I'm in it for the long haul, so if I can buy cheap I'm in.