Is The Bullion Market Crashing?

I think it's that the top dictators in the world are being challenged and that calms the fears of most people. However, people are not awake to the corruption in our own system to even care. The US Constitution says that money must be gold and silver, so technically gold should be in the $25-35 range, silver in the $1 or less range. It all depends - Friday the US borrowing limit will be jacked up another trillion plus change.

It is only a crash if you bought all of your PM's over the past year. If you went crazy and spent money you didn't have or used a credit card then it is a major crash.

To me it is nothing more than a market doing what it does and no concern at all. I still keep buying a little at each level as I have done for 35 years. However I have never put the grocery, college, gas,or this type of money into PMs.

I am actually hoping to see silver get into the teens that would be a hopeful fall. I just not sure it will go there. If it goes back up I am not going to complain either.

Silver prices are getting close to the target price I have been harping about for the last several months. I think it is about time I empty the bank and maybe buy something solid.

If I can't find a reasonably priced forklift (I have been looking for months), I might as well put those bits and bytes in the bank to good use before we have a MF Global event in the banking sector, ie, bank runs.

Even with the drop today, silver is still in an overall uptrend, an uptrend which is not likely to be broken before next Spring. Prices today are screaming, "Buy, buy, buy"! And there is very little risk now that prices have nearly returned to the uptrend line.

my newborn's first car hidden in a couple of gold bars at the moment, looking to put a few coins towards his college fund during this dip

I agree 100%, Barry. The prices of PMs rise and fall. This is just the market trying to sort itself out and make sure that prices are set correctly. We often get a market dip at this time of the year, probably because so much money that might have gone into PMs has gone into other kinds of holiday spending. By Easter, we should see substantially higher PM prices than we have now.



Really? I always thought that when dictators were challenged most people think that war is more likely to occur and that raises fears. It is one thing for some saber rattling to occur. It is quite something else when one side or the other has an oops and the shooting starts.



Hear, hear! As an old and wise investor once said, "Nobody ever made a dime by panicking". Continuing with our dollar cost averaging plans and maybe buying a little extra when prices are down is likely to be the best course. Guaranteed? Nope. Only death, taxes, and more indecisive hot air from DC are guaranteed.



Good luck getting that in cash, if you need it. I've been reading the Gerald Celente and Alex Jones rants on the net about the hassles their banks have put them through to withdraw their own money in cash. Interesting reading. I'm planning to make a series of cash withdrawals from my local CU, starting next week. I am hoping that they will be more amenable to such activities than are the two banks that these gentlemen use. I do plan to give them 3-4 days notice so they can have the cash available without stripping all of the teller drawers. Contrary to the opinions of most people, banks often do not have all that much cash on hand unless they know that they need it for more than their usual day to day operation.



Exactly so, Junior. I don't think that the recent strength in the dollar indicates any long-term trend. This looks a lot more like a short-term bounce in the dollar due to the weakness and uncertainty in the euro these days.



I also see the MFG fiasco as the tip of a very dangerous iceberg. For the first time in my life, money has been grabbed from segregated accounts at a major commercial brokerage and was not replaced via insurance or action from the brokerage's clearing house. CME has bragged incessantly about how they have a $100B fund that would backstop client losses. Now that we have a $1.2B loss of client money, where is CME? They seem to have lost their nerve and are not stepping up as they have long indicated they would. The futures business may be powered by money but it is built across a chasm of loss on a bridge of trust. CME's lack of action in this matter has basically pulled the keystones from under both ends of this bridge. Once it collapses, there will be no futures business handled by CME. The entire idea of futures contracts is to reduce exposure to risk. This is a lot like buying insurance. We pay a small fee and we get substantial financial protection from a catastrophic but unlikely future event. This usually makes good financial sense. What happened at MFG completely blows up this risk / reward model. Customers paid for insurance and then did not get it. CME should have LEAPT into the breech on this one and FULLY covered the MFG clients asset losses. Once the bankruptcy process and the legal process was running, they could have pursued getting the money back as repayment for themselves. That's what insurance companies do. They cover a client's losses and THEN go after getting the money from the offending party or parties. In no event should the clients have been left to twist in the wind as they have.

"Do I really have to list the number of dictators toppled this year alone?"

I would a be interested if you did. I'd like to research how many of those power vacuums have already been filled with another dictator. Why the media portrayed Libya or Egypt as a democratic movement is beyond me.

Anytime the USA is strapped for extra cash which allows it to NO longer POLICE THE WORLD the way they would like, and you combine that with a bunch of new dictators stepping in all of which we have zero idea of the personal character or agenda, well it is a dangerous cautious time to say the least and a RECIPE for possible disaster....

Ever so often war creeps back into the world, as it always has and always will as evil men with evil agendas find their way into power. A time of change is when we are most vulnerable to these dictators to step in who of course would paint a pretty picture to win support. And only after it is far too late when the time comes that they realize they have put a tyrant in charge of their country's well being, if that is in fact the case.....

So there fore with that being said, I think that any false sense of added security in these nations under new leadership, which could in fact have everything to do with the price drops in Pm's combined with its usual dip in this late holiday season. And just one major event could crumble that false sense of added security and send Pm's back up double time, as spring and the new year begins, even though I would much prefer peace and stability. Of course what we want is irrelevant the world is gonna go the course it is fated to go....