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 Replies: 45 / Views: 5,912 |
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Pillar of the Community
United States
586 Posts |
Nowadays, protecting US dollar is equivalent of protecting US bond and stock markets; they will ACT.
It's not an IF, but WHEN.
One more technical indicator: GLD has retraced the 38.2% fibonacci level, an evening star is formed; watch out below.
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Valued Member
United States
112 Posts |
How will they act? What are the possible ramifications
of their actions?
They can raise interest rates to "defend" the dollar.
The question is will this impact housing and the stock
market?...
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Pillar of the Community
 United States
586 Posts |
They acted today.
Daily chart shows gold price correction target of $1172/oz.
Watch out below.
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Pillar of the Community
United States
586 Posts |
Silver has lost the $17 handle ... ... NOT a good sign.
Gold-to-Silver-Ratio has rolled over and heading downwards; if Silver can't even hold up, watch out below for gold price.
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Valued Member
United States
112 Posts |
My screen reads gold 1201, and silver 17.22 spot paper prices.
I see no confirmed trend change yet...
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Pillar of the Community
United States
586 Posts |
Gold and Silver are struggling on 1200 and 17 headline resistances, respectively.
Selling pressure in futures market has been heavy; most likely the direction is DOWN.
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Valued Member
United States
112 Posts |
Perhaps, but saying something does not make it so.
So far they are holding here.
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Valued Member
United States
112 Posts |
Gold 1210, Silver 17.12
Is this a trap, or can they start to base here?
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Pillar of the Community
United States
1450 Posts |
If Fed really starts to increase short term interest rates it will eventually have effect on bonds, gold, stocks, housing and every other financial instrument. Eventually, it will hurt housing and will immediately impact existing bond prices. I think it would make gold less attractive. Inflation is what makes gold tick. In my neighborhood housing prices are back to where they were in 2007. To me this is a really bad sign because they were grossly inflated then and seem grossly inflated now. I bought my crib in 1987 for $70,000 using G.I. Bill. Now this 68 year old house would sell probably for $350,000-400,000 due to location. The house builders are knocking down houses like mine and building 4000 square foot jobs on these tiny city lots. They then ask $800,000 for they cheap and flimsy house they have built on the lot.
If I buy an ounce of silver or gold today just how far does it have to go up for me to make a decent profit if I sell it given transaction fees?
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Valued Member
United States
493 Posts |
Metals are getting support from a weakening dollar, but it is rumored that interest rates will go up some more this year, we are due for a dead end year for metals, this could be it.
Inflation should give some added support.
Edited by everything
01/23/2017 9:49 pm
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Pillar of the Community
United States
1450 Posts |
I was watching PBS market watch tonight and some guest was saying that he believes that inflation will revive and then Oil, PM's and real estate is good place to be. So PM's might be good. I wonder about platinum. Why is it cheaper than gold. Is this the buy of a life time for platinum? I own oil stocks and got destroyed on them except for those that did not cut their dividends. If you believe inflation is coming back they buy PM's. Not to get political but if Trump does what he wants that will increase inflation I think. Trillion dollar infrastructure program with borrowed money and huge tax cuts at the same time? Plus a tariff on imported goods from Mexico and China that means all the goods we buy will become more expensive which means employers must give raises which starts the inflation cycle.
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Valued Member
United States
112 Posts |
Metals are an insurance policy in a world of paper backed by nothing. In our uncertain times it makes sense imho to have a bit as a store of value. No one can know for sure if they will be up or down over a given time. Still, I note that people have desired silver and gold for 5000 years. I am somewhat amazed that I can trade pieces of paper for them. I figure metals will still have value 5000 years from now. The paper, not so much...
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Valued Member
United States
408 Posts |
Quote:
Metals are an insurance policy in a world of paper backed by nothing. In our uncertain times it makes sense imho to have a bit as a store of value. My father, at the height of his position, was one of only seven people who could sign unauthorized checks for the Federal Reserve. Your initial two sentences are more accurate than you know. |
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Bedrock of the Community
United States
10982 Posts |
01/24/17 - Gold is $1216 and silver is $17.20. Don't worry about day-to-day fluctuations. Buy what you are comfortable buying and hold a small percentage of your assets in precious metals. Might be 5% in PMs for some and 15% for others but I would never recommend anyone going over 20% in metals.
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Pillar of the Community
United States
3343 Posts |
For me PM's are like Free Parking in Monopoly. They're a handy place to park spare cash for a rainy day because they're harder to spend, and only 1-2% of savings overall.
The price, whether buying or selling, is relatively unimportant. I'd sell gold at $600 in dire circumstances and buy it at $1800 if I had the money to do it on any given day. For somewhat collectable gold I'll pay 2x melt.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
Edited by thq
01/24/2017 3:32 pm
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Pillar of the Community
United States
1450 Posts |
You know you can buy preferred stock paying 8% dividend and it actually pays to own it. Owning PM's costs the owner to store and has zero interest or dividends. It is a horrible investment except as insurance.
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Replies: 45 / Views: 5,912 |
Posted 01/18/2017 6:55 pm
