My totally uneducated spidey-sense is telling me something BIG is going on behind the scenes.
U.S. Printing presses are smoking, printing money trying to keep the Big Euro Banks from failing, and NO ONE in the US Mainstream media even DARES to mention it.
(Like so many other things that might make a Democrat look bad.)
The liquidity crisis is morphing in to a SOLVENCY crisis. Note the BIG sell-off in metals? Some folks are selling hard assets to cover other losses, and likely margin calls.
Obama is having a heart Attack that this hits US right before the elections.
I agree. We don't know half the story. I simply do know that the Euro-statists in Brussels will not give up their empire building without a fight. I also believe that Central Banks around the world, particularly the US FED, are sympathetic to the while Euro project, and will print, print, print in coordinated way when they feel the time is right.
While the presses are going full speed, that money isn't going anywhere besides the banks and sovereigns.
The Velocity of Money remains at historic lows, especially in Europe.
Defaults will continue and eventually engulf said sovereigns.
The "money supply" is drying up...slowly.
Regarding the commodity crash, it’s more complicated than that.
A primary factor is that the “paper gold” holders and investors are dumping their paper gold like crazy. They’ve realized that they will not be able take delivery of paper gold. Those investment funds that were padded with PM futures were keeping that ETF pricing in place. No one wanted to sell that paper for fear it would crash the price and a lot of portfolios would take a shot in the arm.
I stated about a year ago that the price of gold would go up, that as the fiat-currency situation worsened, those who thought they “had gold” would realize they would not and that they would dump their paper, and that this would lead to a drop in the price of gold.
Another part of the reason that the commodities are dropping is because the bubble that is the Chinese economy is now popping. China does not need commodities as they pretended to need them for the past decade. So, many holders of paper and physical are getting the sense that in the next six months or so China is going to be dumping a lot of their commodities to get cash to pump into their deflating bubble. So, folks are selling while the price is still high.
I’m no investor or adviser, just someone who loves to read.
But it looks to me that the price will continue to drop for a few months and that this will provide a great opportunity to buy.
When the price starts to climb again, it will be because so many people are fearing the death of fiat-currencies and the implosion of sovereigns over their debt problems.
When that happens, the price of gold will skyrocket and it will not be coming down. I’ll be keeping a close eye on silver, which is all I can afford, and that only when it is very cheap.
Just my opinion and research the issue out the wazzoo before making any investments.