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 Replies: 5,643 / Views: 460,277 |
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Pillar of the Community
 United States
3789 Posts |
The other thing I want to say before I wrap up for the night is this-
Some here from their comments, seem to think, erroneously, that because the gold and silver miners say they have to have gold prices at X price for production, then that in turn means gold and silver are not going to slip. They think because the CEOs are on TV or in the paper talking about their company, that they are spot on about the price.
Well I hate to burst your bubble,, but that's not the case. The miners have absolutely NO control, NONE whatsoever in the prices of metals. They are beholden to them. .. and i;ll let you in on something else- anyone who is talking their company on TV, especially like gold miners, that's nothing but a come on for any wise and savvy trader to go and sell that companies stock short.
I will tell you this, the market is dumping gold and silver mining stocks left and right, as we speak right now. The market knows lower prices are in store for the miners and the miners know they wont be able to keep looking for more as prices go down so their growth is going to slow down.
So don't fall for any mining company that says gold and silver will be at X price, because its NOT true.
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Pillar of the Community
United States
2764 Posts |
Vietnam central bank have been selling physical gold to commercial business and bank retailers to stabilize the local gold price market. They have so far liquidated about 17 tonne of golds. They have done 17 auction sessions with about 26,000 taels =~ 1 tonne per session. ( http://kinhdoanh.vnexpress.net/tin-...749230.html)Even though the demand was down as world price drop, the 'market price' of physical gold in Vietnam is still more than 10% higher than world price. However, there's another news saying that the Vietnam central bank is importing physical gold (equivalent to the amount they sold to the local market): http://hartfordgroupinternationalta...ng-the-lows/ So basically they are just replenishing the amount of gold they have sold/liquidate to the local market. So, Vietnam as a whole, have imported about 17 tonnes of physical gold and put in onto the local market. This is very interesting. Note: Vietnamese people don't trust the VND, they rather hold USD or gold (Euro, Yen, Yuan, etc are not as popular/common to the average people, more on the business side). USD and gold are their default saving/reserve/store of wealth. |
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Valued Member
United States
329 Posts |
The gold mining industry died a long time ago, its been under attack since the WW I. Its death is really the most bullish thing for gold prices though. I say good riddance. If they really wanted to tank gold prices they would simply subsidize this industry like they subsidize everything else. The fact of the matter is they want to control gold prices, so the mining industry just gets in the way. They will need to be able to push the prices up when the need suits them.
The same logic applies to other industries as well, not just gold. When you have a centrally planned economy, public capital pushes out private and you must invest in bonds and the annoited industries, otherwise you will lose money. As Gresham said bad money pushes out good. Gold is merely a hedge against the inevitable bust of the central planners.
Gold could easily end up in the 1100's. That was true when gold was 1900 and its true today. But risk is a lot less today then at 1900. My guess is that central banks are selling gold, not buying. They sell low and buy high. They always have.
The problem people have is they view gold as an investment, wheras for the central bank its a balance sheet counterweight and a liquidity tool. When they are buying gold they are injecting liquidity when they sell they are mopping it up. The reason for the confusion is that they like to plant stories which are contrary to their actions.
Edited by wjl
05/16/2013 10:15 am
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Pillar of the Community
United Kingdom
616 Posts |
I must admit I cannot even picture the world many predict where major currencies collapse, especially with the digital nature of life. I think people need to play out that scenario and how the dominos would fall before drawing their conclusions.
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Pillar of the Community
United States
3789 Posts |
What can I say about this morning!? A slow train wreck is what I will continue to call this price action.
I have seen this same type pattern play out in other assets, where there is a point where sellers come in, hit the exits in heavy volume and the price simply chops around, and slowly drips lower, close to yearly lows, then reverts with a retracement, everyone gets confident that its coming back, only to be dropped back to where it started, threatens more yearly lows but steps back and the pattern repeats again.
So, at this time, I expect gold and silver prices to exhibit this type behavior for quite a while, where no one really has an advantage in the short term, and yet the buyers and those wanting higher prices have their bigger burden.
Going to our proxies- SLV and GLD we can see they continue with lower highs and lower lows for now. I expect, as we are seeing in silver a sort of change where buyers come in, push it up and then we again revert.
That is why I say, this is a slow motion train wreck. If you have gold and silver, I would take advantage of up days and sell into it, take some profits.
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Pillar of the Community
United Kingdom
548 Posts |
Both gold and silver look bad right now.
The small recovery gold made after that massive drop in April is being wiped out. It's now below $1400/oz again.
Silver is even worse. It hasn't made any real recovery since that massive drop in April and now it's heading downwards again.
Edited by Demarco Bishopp
05/16/2013 11:41 am
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Valued Member
United States
329 Posts |
"must admit I cannot even picture the world many predict where major currencies collapse, especially with the digital nature of life."
Currencies collapse all the time, even major ones. Its nothing new.
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Bedrock of the Community
13014 Posts |
If you mean in the history of the world yes, if you mean in a persons life span then no major curries dont collapse all the time
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Valued Member
United States
325 Posts |
Now's a great time to buy silver and gold not sell I think. It can only go up, well maybe down for a bit and then recover once inflation hits the economy and intrest rates rise, then stocks will do bad and gold and silver will go up.
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Pillar of the Community
United States
3789 Posts |
I don't wish to debate currencies and collapses. I will say this tho- the USA is NOT some 3rd world country, it IS the most powerful country in the world and NO other nation will ever enjoy this status. The entire world needs us, and our currency, the US Dollar. The USD is the world's reserve currency, even rival nations continue to stock pile it, China, Russia, etc. Furthermore, the USA has the military might to back the currency and provide the security nations seek.
The USD will never collapse, and it IS the ultimate safe haven and that's not open to debate or discussion, PERIOD. Trying to bet against the dollar currency is futile and full of folly.
The USD will always be around. As I have said before, if there's no USD, you can kiss silver and gold goodbye. In fact, I think based on price action lately, the USD will be one of the leading currencies going forward, so chew on that.
and now to wrap up the action today- gold and silver. As many have correctly observed here, both metals have retraced their gains. As I have been saying for weeks, nothing was being stabilized with gold and silver, they were merely retracing as the short sellers covered. The rise that gold and silver furthermore, were done on weak volume, that is there were no serious buyers who had the resolve to make the price stick. Also notice how much weaker silver has acted this entire time.
this week the clues were the continued lower lows and lower highs on the part of gold and silver. Also, only gold attempted once to fill the gap, silver never even came close. Nothing has changed either, gold and silver are in a strong downtrend. At this stage, lets see if both these make another trip to retest their yearly lows.
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Pillar of the Community
United Kingdom
616 Posts |
I must be missing it. Looks to me like July Silver bounced hard off 22.11. But a quick long term chart read seems to pin the bottom around $20. But then again I am no comodities trader nor did I stay at a Holiday Inn.
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Pillar of the Community
Canada
815 Posts |
I cannot believe I am getting J&M tenners for $270...this is like a dream! Doom and gloom all you want, you are making me money!
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Valued Member
Ireland
131 Posts |
Quote:
I don't wish to debate currencies and collapses. I will say this tho- the USA is NOT some 3rd world country, it IS the most powerful country in the world and NO other nation will ever enjoy this status. The entire world needs us, and our currency, the US Dollar. The USD is the world's reserve currency, even rival nations continue to stock pile it, China, Russia, etc. Furthermore, the USA has the military might to back the currency and provide the security nations seek.
The USD will never collapse, and it IS the ultimate safe haven and that's not open to debate or discussion, PERIOD. Trying to bet against the dollar currency is futile and full of folly.
The USD will always be around. As I have said before, if there's no USD, you can kiss silver and gold goodbye. In fact, I think based on price action lately, the USD will be one of the leading currencies going forward, so chew on that. Unsurprising since when do you debate anything? Thankfully not all Americans are the tub-thumping, delusional "we are the world" entities that you obviously are. Only a fool thinks anything will be in the ascendency forever. Norm |
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Bedrock of the Community
13014 Posts |
While its highly unlikely that the US will be the leader for ever it will be for quite some time. As the US goes so does the world economy. Significant steps and very real self inflicted wounds would have to applied for countries to isolate themselves from the US currently and that simple fact alone means were not going to collapse not taking into account everything else that says we aren't either in the near future. Africa is about the only place that wouldn't be directly affected other than the diamond mines. Saying it will always be that was no matter what though is certainly a stretch though
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Pillar of the Community
United States
3789 Posts |
Quick note guys-
do you see what we have once again? lower highs and lower lows. Just a constant drip lower for days now. This was our major clue.
Now we wait to see if indeed we get that push to yearly lows, and then,, how far will it get pushed past the year lows.
Again becareful and be patient, if you are a dip buyer, give it some more time better prices will be here.
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Posted 05/16/2013 04:09 am
