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

This is not over Yet.

Last week Barrick Resources announced the postponement of their giant Pascua Lama mine. This was to be one of the worlds largest mines and is now tied up in litigation over true ownership as it appears to show that Barrick does not have clear title. The probale reserves were nearly 18 million ounces of Gold and almost 700 million ounces of Silver. Work on this mine was completely ceased last Wednesday.
"Last Wednesday" was also an important day for the Kennecott copper mine in Utah, the ground started to shift more rapidly prior to this weekend's landslide. They knew this was coming as they closed the visitor center on April 1st and had all equipment and personel out of harms way. This mine produces some 400,000 ounces of Gold and over 3 million ounces of Silver as a by product of copper, this is the largest copper mine on the planet.

Yes this is what I call a FALSE RECOVERY-think about it as the gains today are minor compared to the drop last three days I expect more pullback 100% sure of it now....

Interesting article. One day theyll be able to get that more expensive gold with new mining technology just like the mines had the land slide will reopen and the other mines ownership will get resolved.

I dont think were in uncharted territory when it comes to PMs. I agree a lot of things about life are very different now and if we were talking having to survive on our own with a collapse were in uncharted territory with how technologically dependent we are but difficulty mining is nothing new.

I completely agree with the everything is a cycle idea which is what I fully expect to happen with PMs as well. Theyll drop at some point stay low for awhile and well do something stupid and cause a huge spike again rise and repeat.

Its not the first time weve seen these types of prices for the PMs and it just looks like how theres no market for 4 dollar copper theres no sustainable market for 40 dollar silver or 1800 dollar gold. Eventually people get bought out or get sick of it sitting at those levels moving sideways and move their money elsewhere.

This board and other stackers not included, but a majority of PM buyers are looking to get a return on their money when its clear that return is maxed out they move on. Large quantities of PMs have been moved in the past, granted its easier now with the click of a mouse but the movement itself isn't an entirely new wild card. Also now theres a lot of people that own a lot of PMs that presumably werent going to be buying forever. Everyone a different type of buyer but even the most favorable of stacker will think twice about getting more when the garage is filled with boxes, obviously most people dont have that much but there are a lot of people that had set goals in mind who are probably close to them.

I also think well see a pull back of the DOW though I think itll be more focused. Instead of being an everything pull back the stronger companies will hang on while the weaker ones lose some ground. Most of the strong ones are still not back to their pre 08 levels so the upside is still there for those investors in a lot of the areas.

That's pretty much my opinion on PM as well. A store of value for dire times

I buy the cycle theory myself and agree an disagree on viewing history. Sure every new day is its own fingerprint but I think market trends from the past Creep back into today's market still all the time...

@ Demarco, those are pretty hefty premiums! Are other dealers doing this as well? I wouldn't support them, whatever the case. Covering losses is understandable, but it sounds like BBP is taking advantage of its customers.

@ yup7676, thanks for your views on QE. It appears that not even QE to infinity has made a difference. There are many predictions that silver will one day reach astronomical numbers, due to economic collapse, political unrest, and the demise of the US dollar. What are your views on this notion? Would panic buying and public awareness of the value of gold/silver be the key that sets off the market? Or do we simply follow the market's behavior and let it do as it will?

Appears the gold/silver market are turning again. Getting ready for more nibbling-buying and learning how to be patient! Not sure what the hype is about silver shortages. There is plenty available, just lack of stock for various products. But figure those will be replenished once the market settles?...