My friends, IF Cyprus was a big deal, we would see credit spreads widen. We arent seeing that. the TED Spread is calm and hasnt spiked higher on any of this.
The markets already are aware of the losses and coming losses in the banks in europe.
The CBs, the ECB will continue to pump money into the system to help things catch.
Things are and will get better with the economy. Already the USA is improving and the USA will lead in the repair of the global economy. There are already many asian countries steaming ahead, and I am not talking about China, which is yesterdays news and laggard going forward.
I realize by nature some here, due to their passion for silver and gold would, perhaps even secretly,are waiting, praying and hoping for a global collaspe. Their hearts jump with glee at the thought of a global banking meltdown. They hope that metal prices go to the moon.
But the facts are, global economies are getting better. Insitutional money is dumping gold and silver and has been putting money to work in markets for 6 months now.
Cyprus is a non-event and a yawner. Makes for great headlines to sell papers and get eyeballs on TV, for people to sit around and obsess on the next failure. ... and thats it.
Cyprus means nothing, really, it means nothing. Worrying about Cyprus is like worrying about North Korea and their pathetic leader. *YAWNNNNNNNNN*
None of you, even collectively can make the price of gold and silver go higher. The markets move prices and clearly, the price action of gold and silver are saying theres no need to be holding gold and silver in the amounts they did.
Everything is great, ignore all that debt that can't be repaid. Guess we did a good job of tricking Asia and Russia into buying massive amounts of worthless gold, sure fooled them. Our paper based commodity markets and bank short sellers will continue to drive those prices down, think I'll trade all my silver and gold coins for Bitcoins.
Hey what can I say. LEts face it. Most of you who are buying silver and gold are doing it because you can only see doom and gloom.
Even with facts showing you that you are wrong for being so negative and pessimistic, well, I guess those of you who blindly put your faith and savings in gold and silver will behind the scenes be in utter disbelief as the economy continues to improve and PMs prices continue to melt down and those of you who insist that things are bad will be in the minority and be forced to sulk behind your locked doors and tightly shut blinds with your underwater investments in gold and silver. lol
I havent said things are perfect. But we are farrrr from any sort of doom and gloom. The hard facts are that silver and gold are going down in price. .... and everytime I see people try and fight a trend, they end up being torched.
7676 I buy Silver because of long term historic PM cycles that I believe will repeat.I see the drop in Silver as a reflection of the strength of the dollar versus other currencies and the strength of the American banking and economic systems versus the rest of the world. As a result you need dollars to participate. So personally I want to use some (small) portion of my strong dollars to buy Silver prior to the next cycle. If I was doom and gloom and would buy farmable land with a water supply and weaponry and build a bunker.
Quote: Everything is great, ignore all that debt that can't be repaid. Guess we did a good job of tricking Asia and Russia into buying massive amounts of worthless gold, sure fooled them
Silver and gold are insurance policies against reckless printing (creation) of currency. I for one do not buy these for doom and gloom (money is better spent on ammo in that case). The dollar is currently the worlds reserve currency which allows these clowns to print (create digits) like there is no tomorrow and get away with it. As more countries decide to break away from the dollar, watch how it's value starts to tank. Some countries are already using gold to purchase oil and more will follow.
As for falling silver and gold prices, once again based on paper manipulation by big banks. JPM, GS and others have been caught naked shorting silver countless times with no repercussions from the government. The whole financial system is based on paper and manipulation by those who can.
Those that like to see things through rose colored glasses, I wish you well.
why is it so hard for people to believe that just because this is a coin forum and its a great community of collectors, that some of us are being realistic in saying prices for PMs are dropping?
why is it so hard for people to believe that just because this is a coin forum and its a great community of collectors, that some of us are being realistic in saying prices for PMs are dropping?
We all have different opinions about it and there is an aspect of self interest that helps form those.
My only comment would be that sometimes you do talk in extremes like saying the debt will never matter or the US will always be number 1. Whats true today isn't assured to be true in the future. If you believe that thats fine youre entitled to, but any time you take in absolute and extremes it turns people off.
Not trying to be a jerk just trying to help. I'm one that agrees with a lot of what you say but if you want to convince others or persuade someone you cant jump to extremes or absolutes.
Its funny how when gold prices rise no one cries manipulation. Yet it is the exact same mechanism that pushes the price up as down. The market is the sum of all the participants, but in the short term it is controlled by large entities who take enormous leveraged risk on both sides of the trade. Some have physical metal behind their trades like hedgers and miners, and others do not, speculators. The latter being the large buyers and sellers in terms of volume. The purchasing power of gold is high right now historically. That does not mean gold can't go higher, but what it does mean is that gold is vunerable to a consolidation. As investors and producers must always be sellers to realize returns and profit.
Gold is expensive to transact in theres fabrication,assay, shipping, insurance and storage. This is the force that causes the disconnect between the so called physical and paper markets, and it manifests itself during times of high volatility.
As for Cyprus, I think they were unlucky enough to get caught short of cash just before the German election. Bad timing.
The thought that Cyprus would ignore the law and take money for all accounts brought back memories of what happened in Iceland in 2008.
So it ended up that Cyprus would follow the law and protect accounts up to the 100,000 Euros limit.
Yes, folks were foolish to have more than the 100,000 Euros limit but how do we know the entities who are supposed to provide the protection, can actually deliver on the promise?
According to the press in the UK: The International Monetary Fund has agreed to loan Cyprus €1 Billion over three years to help in the recently agreed Cyprus bailout. Contributions by countries to the IMF for the bailout, see the USA contributing €177 Million, Japan €65 Million, Germany €61 Million , Britain €45 Million plus more from other countries. The IMF hopes to have gained permission for the loan by it's board by early May.
It is a small deal and the costs in terms of confidence are enormous. Whether or not you have a rush to alternative assets is not clear. However, the bigger issue is does it lead to an accumulation of cash outside the system? As long as people are exchanging cash for hard assets money is circulating. If they hoard cash without a fiduciary thats entirely different.
The Euro has not failed as a store of value, at least not to any great extent. The primary function of a currency is that it facilitates exchange. This is where he Euro fails as a means of exchange for debt repayment. The revaluing of the debt from the former sovereign to the Euro changed the value of the debt in the favor of the lender, placing a tremendous burden on the debtor.
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Posted 04/02/2013 7:12 pm
