Posted on 11/20/2013 11:56:27 AM PST by CivilWarBrewing
I checked the stock market today and noticed it's down. But I also noticed that precious metals appear to be tanking. Gold is at $1245/oz and Silver at $19.85/oz.
What's going on here? Is J.P. Morgan or some other major player manipulating the precious metals market?
Gold doesn't earn interest, it is a "store" of value, therefore the higher the interest rates (to a point) gold is sold in favor of higher paying investments. When inflation truly kicks in..., and paper assets become confetti, gold again becomes desirable!
Gold is not an "investment", it is an "insurance policy" of last resort! Always has been and always will be!
Rumor is that China is hoarding gold though.. I think this is a complicated issue, but interesting thoughts abound here.
Because they’ve been grossly over valued for a really long time. Eventually enough traders were going to realize that.
I see from your homepage you have a BS in Finance and an MBA so I sincerely believe you understand how the FED’s QE is primarily a deflation-fighting apparatus. All this talk about easing QE when the unemployment rate hits 6.5% is pablum for the masses and diverts the middle class from the possibility of postponing purchases until the prices come down in the future (thereby helping the deflationary process).
Everyone is selling their gold holdings so they can buy BitCoins.
I think a lot of us believe that it will end in runaway inflation, but it will be preceded by deflation. I see these drops strictly as buying opportunities.
Minutes of Fed meeting released at 2pm ... look at the chart.
I will not be giving up any of my precious metals (lead and brass) any time soon.
If one needs to buy when its low it is a good thing if one has to sell when they are low it is a bad thing.
"Okay, precious metal prices have been dropping all morning, which means that everybody is waiting for it to hit rock bottom, so they can buy low. Which means that the people who own the precious metal contracts are saying, "Hey, we're losing all our damn money, and Christmas is around the corner, and I ain't gonna have no money to buy my son the G.I. Joe with the Kung-Fu Grip! And my wife ain't gonna make love to me if I got no money!" So they're panicking right now, they're screaming "SELL! SELL!" to get out before the price keeps dropping. They're panicking out there right now, I can feel it."
In 1983 I bought physical silver at $16 and even then it was high and collapsed so be careful. The story is more than this involving my father but no one cares
Talk about decline. Eddie Murphy has been on decline since then.
****Great movie though!!
I think a lot of us believe that it will end in runaway inflation, but it will be preceded by deflation. I see these drops strictly as buying opportunities.
But I prefer real estate (land). I can actually use that.
The phony metals paper trading market is what’s moving down today. The real valuable physical stuff is sitting in people’s vaults and safes.
I will not be giving up any of my precious metals (lead and brass) any time soon.
My first, and biggest buy, was silver at around $6.50 and gold at $420. so I'm still on the plus side of the curve.
Newly released Fed minutes show that the end of their program of monetary stimulus is approaching. Interest rates will then rise, which will drive down precious metal prices as commodities speculation becomes more expensive in terms of carrying costs and less attractive than the more secure profits that will soon be available from lending. The current sell off is a way for metals speculators to secure profits in anticipation of the price decline that will ensue because of the Fed pull back.
my thought is that I think silver is a tremendously attractive buying opportunity! gold also attractive but not quite as much as silver, which looks like a real steal !!
(for long term investors, of course, as ... these sort of things can and do go up AND down in short term trading )
but anyway since you asked for our thoughts, there’s one for you.
worth about what you paid for it, incidentally, you puts up your money and you takes your chances
good luck!
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