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 Replies: 19 / Views: 4,143 |
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Valued Member
United States
372 Posts |
After reading different scenarios about what could happen if the US defaulted later this month, I have to wonder what effect that would have on metal prices. They say of course the value of the dollar would go down as well as the markets but would metals shoot up?
I try to understand the factors that cause the fluctuations in metal prices but it gives me a headache when I can never figure it out.
Any thoughts?
Mike
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Pillar of the Community
Japan
666 Posts |
if US defaults PM shots up
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Pillar of the Community
United Kingdom
548 Posts |
Hard to say what will happen to PMs, but the USA won't default. A deal will get done.
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Valued Member
 United States
372 Posts |
I'm hoping they will figure things out and am guessing they will but in cases where I thought medals would go up the did the exact opposite.
Mike
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Pillar of the Community
United States
3789 Posts |
while I dont think a default is possible, even a possible technical default wouldn't help PMs either.
PMs are dead broken assets that should be avoided for more. The case is very strong for lower prices.. and again, at best gold and silver are broken.
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Pillar of the Community
United Kingdom
548 Posts |
Although people are saying in the event of a default there would be a sharp decline in the value of the dollar which ought to push the price of PMs up.
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Pillar of the Community
United States
3789 Posts |
Yea but correlations only work for a while and then they stop. The dollar has floundered for a while and nada, it has not supported gold at all.
IF a default did happen, I could see the dollar actually strengthen. Its still the worlds 1# reserve flight to quality asset.
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Valued Member
United States
315 Posts |
Im going to guess Pm's will go down., maybe stocks too. A lot of people out of work will have to sell.
Edited by Superhal
10/10/2013 1:27 pm
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Bedrock of the Community
13014 Posts |
The credit rating Moodys has already basically said that a "default" would do nothing even if no deal got done. Treasury would still pay off old debt, the debt ceiling is really for authorizing new spending. The ironic part though is we really arent paying anything its more just saying okay you can keep charging us more interest. The gap though for new spending is smaller this time around too.
Its unlikely that anything major is going to come from it for pms, stocks would probably see a dip though and have to work their way back up
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Pillar of the Community
United States
3789 Posts |
the gentleman from cali basically took my comment.
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Pillar of the Community
Canada
746 Posts |
Well, if there is a default, metals should go up, since their behavior has been the opposite of the stock market lately. But it could be a quick run and temporary; because some kind of rescue mission for the dollar would likely take place shortly after the default (like tapering or adjusting interest rates) in which case metals would drop rapidly. That might be a good time to buy some silver.... Whatever the case, I suspect the debt ceiling issue won't be resolved on the 17th, but rather postponed. This thing could drag out much longer than expected, especially if a default is in the works...  |
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Bedrock of the Community
13014 Posts |
Quote:
I suspect the debt ceiling issue won't be resolved on the 17th, but rather postponed. After the midterm election is probably as soon as you could expect a real longer term resolution on it. As long as the composition of Washington is the same expect the status quo of just going a few weeks/months at a time |
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Pillar of the Community
Canada
2019 Posts |
How do you resolve a 17 trillion dollar debt ? You don't... you move into a new type of currency , the start of a new world currency which is what has been planed all along.
Look up "Trilateral Commission" and the "Bilderberg Meetings" for a start and you might get a glimpse of who is really running the show and its not Obama or any other president for the last 40 years....these guys were/are just salesmen and that's it.
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Pillar of the Community
Canada
3692 Posts |
I don't think that the world will flock to PMs RIGHT AWAY. People think it will skyrocket to the moon but I don't see people on the fence about silver and gold ready to press the button if there's a default; it's not even on their radar ready to happen. There are tons of monetary instruments that will get used first before the "barbaric relic" that is gold. Once people finally get that you can't spend money you don't have then it will sink in. Until then people are in the dark. I really hope there's no chaos because my PMs will be worthless to idiots, especially idiots in distress. Silver and gold will be seen as a "rich" thing, IMO, because that's the realm in which they reside. There's going to be scorn against gold IMO, and the majority (I'm guessing) of the public has never used silver as money so the transition will be slow. We'll see. I don't think there will be any wide-spread panic.
Of course these are guesses. I'm never without controversy and strong opinions but my mind always changes according to new information gathered. I really hope the American public gets through this safely and come out stronger.
Edited by Libertad
10/10/2013 7:56 pm
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Pillar of the Community
United States
3789 Posts |
I continue to take the stance that even if there is a default, gold and silver will continue to be broke going forward.
Absolutely NOTHING is supporting the price of gold and silver.
What I find interesting about this forum is how many people are talking about if prices will go up, and what if they go up and what not.
There are very few folks here that say prices are going to go back to their all time lows. Thats is something that could really happen depending on how strong this downtrend is.
That is why folks should excerise caution.
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Pillar of the Community
Canada
2019 Posts |
You maybe right Yup but which ever way its goes, up or done if a default did happen , I am glad that I have my stash of silver and gold and not just a stack of paper money or worst, some digits on a computer screen that possibly could be worth pennies on the dollar or simply vanish. Well I do have some cash as well lol,need to "try" and cover as many bases as possible.  |
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Replies: 19 / Views: 4,143 |
Posted 10/10/2013 06:28 am
