What I find interesting is how the establishment immediately attack gold and silver buyers when the metal drops. Ridicule, sarcasm and etc is directed at the prec metal buyer. You do not see this when stocks, real estate, options and hedge funds take a plunge. Instead the pundits argue one should not panic and the wise ones will buy after the drop in prices. My 2 cents on attitude of establishment financial types attitudes/biases on different types of investments vehicles.
Yes that is true. They attacked it when it was up, too. Talking heads on financial networks and even the Oracle of Omaha all attacked Gold in an almost surreal coordinated way. It is like denying human history, 1000’s of years of economics. “forget gold, we are more evolved now, trust the fiat paper, invented in 1913 and refined in 1972 when we left the gold standard”. Sorry, but 40 years experience is not enough time to declare 4000 years antiquainted. They don’t want us in PMs and especially not physical gold, maybe in part because they can’t deliver on growing demand for physical PMs. And because gold is associated with certain Libertarian types, and anti-Fed types, and the zombie-apocalypse crowd they ridicule it as a political weapon too. But Ron Paul was right when he said he could buy a gallon of gas for dime when you calculated its cost in gold. He is right that the Fed makes bubbles and pops bubbles influences where private money gets invested.
The thing is at this point you can’t really be sure whether the bubble in PMs was designed by the same Fed that bubbled back the stock market and continues to work on housing/RE. And you can’t be sure they aren’t on the opposite side either. Gold spiked from 2010 to 2012 about $800, with Silver in tow. If you look at multi-year chart you can see clearly how money just plowed right into it. If you remember the tech bubble from 1999-2000 it looks similarly spiked. Straight up. Almost like a short squeeze. And now maybe the beginnings of straight back down. With $85B a month to throw around any single market can be moved in a big way. With Japan throwing other massive amounts you’d expect everything to bubble higher but instead we are probably going to see a big correction. Something specific is happening I suspect, I just can’t guess at what. It could just be that they can’t paper over the worldwide economic malaise any further and the big money realizes it. But that’s too generic to feel right to me.
At the end of all hyperinflated markets comes massive deflation. That is how the cycles work. While we do not fit the traditional “hyperinflation” such as seen in Weimar Germany or Zimbabwe, this recovery from the depths if 2008 happened very fast and with a less solid foundation. It just bubbled due to QE. Fact is we may be in a liquidity trap. All this money being printed and still nothing happening in the economy except asseet bubbles. People who could borrow don’t want to or need to, and people who do want to or need to borrow are unable to. Jobs are not there, especially not $30/hour jobs, no matter how much money is being thrown around. There is essentially nil economic growth, just bubbles. All that money in stimulus and in deficit spending... and it hasn’t worked. So now what do we do?
I am not anti-PM. I just am opinionated, I think all markets are going a good bit lower still. I hope I’m wrong I don’t want to see more wealth wiped out. I would like to be a buyer of PMs and may nibble, but looking for another 10% first. I could be wrong, in fact I want to be wrong. Best wishes and good luck to you.
Now that Silver is under $20 and gold down to around $1250, I thought you might recall this conversation. I toldja so ;-)
I really want to buy stackable quantities but I just have this feeling I will get a chance at $15 or even $12 if I wait long enough.
The Zombie Apocalypse may be coming, but not as early as many are predicting. :-D
I noticed that too. Average dude buys gold, silver, etc. because its private and it’s tangible, and it doesn’t rot. The people criticizing it are in stocks and bonds.
Obama blew out the bond holders on GM, for unions of all things, which means bonds aren’t a hedge on stocks any more.
Stockholders? They should know more than everyone else about the actual material condition of the companies they hold, but they don’t.
The market, and I think it is generous to call it a free one, is a scary, mobbed-up place right now. I think its rigged.
If you can get tangible, non-perishable commodities and trade them, I think you should.
Lord knows were I in the top levels of the NRA, and I could see what the Usurper had planned, I’d have bet the ranch on ammunition and sold it out of my garage. You could sell almost all of what you had quickly for 10 percent below what Wal-Mart was selling it for and doubled your money.