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 Replies: 44 / Views: 4,384 |
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New Member
United States
47 Posts |
It interesting to see the effect of PM price changes on numi coins. I would love to see some side by side charts...
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Moderator
 United States
189673 Posts |
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My personal theory is that it's tied in with the number of internet forum threads about the ups+downs of spot prices or investment insights/advice/predictions of some kind or other. Right now, 7 of the 10 top-of-the-list threads in this forum fit that description. I think we're responsible for it. We should toss in half a dozen more threads in this overall subject area. We might be able to drive silver back up to $30 and gold back up to $1600.  |
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Pillar of the Community
United States
899 Posts |
I am guessing it is much ado about nothing myself. The road to here has been full of spikes - in both directions.
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Bedrock of the Community
United States
10047 Posts |
OK - I am no expert and certainly a novice.
But I predicted (for myself) the spike when Obamam got into office b/c the economy had to tank worse and people would ru to PMs for some ssort of stability. At least this was my thinking in my own uneducated manor - it made sense (and plent of dollars in the long run!).
From what I have seen on this forum and done a bit of researching (remember - no expert), the market was manipulated by an incredible dump of PMs from "somewhere" right as silver was about to crest the 50.00 mark (coincidence - I guessed not - and think not - but have no proof).
Now the PMs are not on the "fun" ride up and I am guessing people ave lost faith in them from the last manipulation. THis is something the fed would enjoy b/c PMs are not so high in regard to their fiat currency.
I see people all over (not just the forum) wanting to buy, buy, buy silver. And yet the price has been dropping. I always thought when something was in demand, that the price would go up as more and more became unavailable b/c it was sold. also thought the mint recently had a short supply on silver (?).
So my current thoughts are that manipulation is still present?
I do not know. But it is fun to think over.
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Pillar of the Community
Canada
3167 Posts |
Interesting! Thanks for sharing!
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Pillar of the Community
United States
2543 Posts |
Record highs in the stock market, two year lows in the PM market. There is only so much investment money. It is as simple as that. Maybe I should start 4 more threads to discuss it. |
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Valued Member
United States
410 Posts |
@ Earle42: I think you are giving too much weight to what is happening in your local region by small time silver investors. The people buying physical PM from their local shop or online are a tiny fraction of the PM market. Even the guy that buys a monster box at a time is a little guy in the global market. The vast majority of the market is held by hedge funds, pension funds, banks, sovereign wealth funds, and governments. These investors are the ones that move the market. The big investors buy and sell millions or even billions of dollars of PM's in a single trade. It is not manipulation it is economy of scale. The following chart gives a good visual of who really runs the financial markets:  The top 10% in the US hold 73% of the wealth and that was in 2007. They hold a greater percentage today Wealth distribution is even worse globally (2012 figures):  |
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Bedrock of the Community
13014 Posts |
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I see people all over (not just the forum) wanting to buy, buy, buy silver. And yet the price has been dropping. I always thought when something was in demand, that the price would go up as more and more became unavailable b/c it was sold. also thought the mint recently had a short supply on silver (?). Seeing people wanting to buy on forums is way to small of a sample size. You have millions of ounces bought in all forms all the time. The demand is over stated, you can find silver absolutely everywhere. You can have short period of heavy buying from some big movement, but its not sustainable and doesn't last long. The mint wasnt short on it either, they had more on the way. A real shortage would mean no more is coming for the year. They dont make much on bullion coins and unless forced dont go out of the way to pump them out every second. Quote:
So my current thoughts are that manipulation is still present? Selling isn't manipulation its just the product cycle playing out. Diamonds are manipulated being held back giving them a fake inflated value, metals arent. Really theres just only so much possible upside to it without an economy falling apart. They rode it to the top which happened to be about the same time the stock market started showing signs of life. Theres much more money to be made in stocks and by 2011 it was obvious its wasnt Armageddon so they moved the money there. Theres have to be far to many people involved all trusting each other not to double cross the rest for some world wide price fixes. It may seem like a fix because they all act off the same principles but most people stopped buying in the 40s which includes individuals as well not just institutional buyers |
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Valued Member
 United States
325 Posts |
It's down again today. time to buy low. :-)
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Pillar of the Community
United States
899 Posts |
@joecoin85 no rush... today tomorrow or next week.. I'll continue to nibble at the corners. :)
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Pillar of the Community
United States
2543 Posts |
I mean seriously ......... the stock market is hitting record highs daily, where does everyone think this money is coming from ? New investors emptying their savings accounts ? Powerball winners ? The money being dumped into stocks, causing these record highs, is being taken out of other investments, by large funds and banks, and is being re-invested in stocks. PM's are one of the investments these funds are moving out of into more profitable stock investments. If you just won $590 mil in powerball, would you rather invest in PM's at a fluctuating 5% yearly return or in growing Nasdaq companies at a steady 10%-20%. In spite of what others on this forum may lead you to believe, it's not rocket science. What I usually do , is read Yahoo Finance every morning and then come here and read some people repeating it, sometimes word for word, as their own opinions and analysis. Edited by denco7
05/21/2013 11:49 am
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Pillar of the Community
United States
2168 Posts |
Up down every day it seems. More down though. I still haven't bought. I just don't like the premiums. my dealer is a lot better than most online. 15% over spot for junk dimes and quarters so not that bad by oomparison. I may if silver still decreases and premium stays like that but somehow it just bugs me to pay high premiums. I buy the 5 oz. ATB as well and they are way over spot now. |
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Pillar of the Community
United States
561 Posts |
or in growing Nasdaq companies at a steady 10%-20%.
If only it were that simple. None of us would have to work.
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Pillar of the Community
United States
3670 Posts |
Shot up for a bit then leveled back off to where its been last few weeks....
I still think we down trending a bit, but I heard it costs 18 bucks per oz. to mine it so really cant fall much lower and even be profitable enough to mine....
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Pillar of the Community
United States
2543 Posts |
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or in growing Nasdaq companies at a steady 10%-20%. If only it were that simple. None of us would have to work Or if we could all pick out the newest issued coins to buy , that will be worth $10,000 in 10 years. I guess that is why we pay our financial advisors so much, they supposedly can recognize such companies. |
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Replies: 44 / Views: 4,384 |
First Page
Posted 05/20/2013 5:32 pm
