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 Replies: 28 / Views: 3,557 |
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Pillar of the Community
United States
1200 Posts |
There is no confusion about what the subject of this thread is or about the propriety of staying on subject, so there's no need to apologize for anything.
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Pillar of the Community
 United States
5855 Posts |
I never meant to imply that PMs would become totally worthless, just that they could return to historically low levels I'd the "big money" investors are fleeing the market. Again, just a theory...
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Pillar of the Community
United States
3789 Posts |
It is not a theory. The big funds, the "tutes" as we call them, institutionals, they are and have been selling out. The volume tells you all you need to know. In fact, most funds had been selling since November. If you notice, each release of the Fed (in back half of 2012) minutes and negative reaction to them by gold and silver was telling you all you needed to know.
I have been repeating myself for months now, we dont know yet if the selling is down, the downtrend is strong and this will take time to work itself out.
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Valued Member
United States
329 Posts |
I became bearish after the G7 in October. I missed the EOY rally. I was looking for a correction and I got it. The correction is deeper than I ever thought it would be but thats the reward for patience.
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Valued Member
United States
329 Posts |
I had a good friend who was a big investor in mining stocks. And he asked me why I could be so bullish on gold yet so bearish on gold mining companies. If you want to make money mining gold in a negative interest rate environment then you need to mine central bank gold because the eocnomics simply don work. Its far easier to speculate in the bonds they buy with the all the money they print and then drop the proceeds in gold. This is much less risky and costly than crawling down a hole.
Markets are funny things. Things that seem the same can be quite different.
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Pillar of the Community
United States
3670 Posts |
Northerncoins came with strong point last page about how tractors, parts,and money to fix is when the banks really began to own the farmers as the wisest business man can't always fore see unforeseen events and breakdowns, hidden costs....
Perfect example today the Time Bandit on the Deadliest catch. They did a show about how those brothers worked with their dad day and night to build that one and a half million dollar crab boat....
What does boat stand for-shell out another thousand eh.....
They made 2 million that 1st year and paid their dad back on the boat....
After they built it he threaten to not let them have it and they tossed a fit and threaten to quit him forever. That is the fire he wanted to see and they wanted to prove him wrong and they did....
However last year was their best year-but last year was also the worst ice year since 1977...
I bet you they spent more on that boat in repairs after the ice damage then they netted last season. Just another fine example of bigger pay checks and bigger bills and how the banks and gov really own us all...
You see it on the other gold mining shows as it often cost more in repairs and equipment then the gold found can cover. Now with this drop many of them may not be able to stay in bus....
Edited by Silverhawk74
04/17/2013 4:11 pm
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Pillar of the Community
United States
4132 Posts |
For Game of Thrones fans, this blog post pretty much explains it all, without even getting into the power of the Iron Bank of Braavos. |
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Pillar of the Community
United States
2661 Posts |
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Cyprus was talking about selling some of their gold but that's only worth a few hundred million dollars. Is that enough to trigger the biggest fall in price for 30 years?
And I read a report on Kitco news just last week stating that Cyprus and China had started dumping physical gold on the market only to find out two days later that it was merely speculation that it would happen. I have also read that A lot of bullion banks in the Euro zone as well as big head funds and others are shedding their paper assets which is driving the market right now. I do know that silver and some gold was plentiful in my area up until about three weeks ago and now I can't find any. I was out and about last Friday and stopped in a few of my old haunts and managed to come with two Mercury dimes, the only silver I could find. |
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Valued Member
United Kingdom
90 Posts |
It's interesting how silver is thought of as an industrial commodity but never really gold. Whilst its true the amount used is way way smaller, just think, every single piece of circuit board in every electrical device has gold in it with the gold contacts, whether its your pc or mac/laptop motherboard, cpu, memory, your mobile phone, you can see the gold plated contacts everywhere.
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Pillar of the Community
Canada
2019 Posts |
Well this is a pretty good read and sounds as the most likely reason for what what happened, how much longer can they keep up the bailing out is the bigger question I suppose. "After Gold Crash, Experts Point to Central Bank Manipulation" Quote:
Economist Dr. Paul Craig Roberts, assistant treasury secretary during the Reagan administration and former editor of the Wall Street Journal, is one of many experts who argue that the recent collapse in gold and silver prices was carefully orchestrated by the Fed and a coalition of allied mega-banks. In a widely cited analysis of the recent plunge in precious metals entitled "Assault On Gold Update," he said the U.S. central bank was "rigging all markets" - - " bond prices, interest rates, and of course, the bullion market.
The purpose, Roberts argued, is to protect the value of the dollar while the Fed continues adding to the supply of fiat U.S. currency faster than demand increases. If the dollar's exchange rate were to fall, prices would rise, the Fed would lose control over interest rates, the bond market would collapse, and turmoil would reign in the financial system, Roberts noted. So, the U.S. central bank had to act. According to Roberts and other experts, it did so by selling "paper" gold that may not even really exist - - " naked short selling, in other words.
"Rapidly rising bullion prices were an indication of loss of confidence in the dollar and were signaling a drop in the dollar's exchange rate," Roberts explained. "The Fed used naked shorts in the paper gold market to offset the price effect of a "rising demand for bullion possession". Short sales that drive down the price trigger stop-loss orders that automatically lead to individual sales of bullion holdings once their loss limits are reached."
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The socialist and communist-minded regimes ruling the BRICS countries, meanwhile, recently signed their latest declaration calling for a global currency managed by the International Monetary Fund (IMF) that would presumably replace the U.S. dollar as the world reserve eventually. They also called for Third World rulers to have a larger role in the international monetary system. As they continue gobbling up gold at what strongly appear to be artificially depressed prices, the BRICS rulers may ultimately get what they want â€" at least if and when the dollar finally loses its prized status as the global reserve, forcing a complete redesign of the global system. In the end, if nothing is done, Americans will likely end up among the biggest losers. http://www.thenewamerican.com/econo...manipulationEdited by Northerncoins
04/17/2013 6:45 pm
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Bedrock of the Community
13014 Posts |
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just that they could return to historically low levels I'd the "big money" investors are fleeing the market. Again, just a theory... I think your theory is dead on. The HUGE money the big boys have is what drives markets in a lot of ways. A few years ago gold and silver were very attractive options as a safe haven with the uncertainty happening. As prices continued to rise it also gave incentive for them to hang on. Now that some of that uncertainly has resolved to an extent and prices have been sideways with a DOW recovery theyres more attractive options for their money. The good news is that as long as you dont need the funds in the next few years it should be fine. You can save a ton in future purchases and it certainly will go back up at some point. Depending on someones age its true they could possibly not live to see it but at the very least they have set up a VERY nice nest egg for their children which I believe should be a goal of every parent |
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Valued Member
United States
329 Posts |
Economist Dr. Paul Craig Roberts, assistant treasury secretary during the Reagan administration and former editor of the Wall Street Journal, is one of many experts who argue that the recent collapse in gold and silver prices was carefully orchestrated by the Fed and a coalition of allied mega-banks. In a widely cited analysis of the recent plunge in precious metals entitled "Assault On Gold Update," he said the U.S. central bank was "rigging all markets" - - " bond prices, interest rates, and of course, the bullion market.
The purpose, Roberts argued, is to protect the value of the dollar while the Fed continues adding to the supply of fiat U.S. currency faster than demand increases. If the dollar's exchange rate were to fall, prices would rise, the Fed would lose control over interest rates, the bond market would collapse, and turmoil would reign in the financial system, Roberts noted. So, the U.S. central bank had to act. According to Roberts and other experts, it did so by selling "paper" gold that may not even really exist - - " naked short selling, in other words.
"Rapidly rising bullion prices were an indication of loss of confidence in the dollar and were signaling a drop in the dollar's exchange rate," Roberts explained. "The Fed used naked shorts in the paper gold market to offset the price effect of a "rising demand for bullion possession". Short sales that drive down the price trigger stop-loss orders that automatically lead to individual sales of bullion holdings once their loss limits are reached."
While I'd hate to call a former treasury secretary stupid, maybe he is just old. We dropped the gold cover clause of dollar covertibility in 1971. What did that mean Mr. Treasury Secretary? Well it meant that gold bullion stopped flying on jets all around the world and equity would be transferred to, or drained from those who had it via price rather than tons.
Edited by wjl
04/17/2013 8:36 pm
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Valued Member
United States
329 Posts |
"My father told me that back in the 30s when farmers where switching from horses to tractors around here that most people that used horses had a bit of money in their pockets most of the time but when they bought tractors and the plows,extra equipment to go along with them , fuel/oil repairs that they were always in debt to the "banks" farm board or what have you , so while production increased most farmers wealth didn't. Ya they might make more money but owed more money...."
A perfect example of how negative real rates destroy productive enterprise.
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Replies: 28 / Views: 3,557 |
First Page
Posted 04/17/2013 12:26 pm
