Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
Posted on 11/16/2010 8:40:33 AM PST by WebFocus
UGLY.
That's the only way to describe the scene in the commodity world today, as a dismal night in China, and a strengthening greenback continue to make the speculative froth go away.
A few notable moves, via FinViz:
Silver is off 3.5%
Soybean Oil is off over 4%
Wheat is off over 2%
Coffee is off over 3.6%
Here's the key thing to know... prior to the big selloff that started Friday, speculators were universally positioned to be long these commodities (and short the dollar), and so there wasn't much direction for this to go, and not surprisingly, the selling is furious.
(Excerpt) Read more at businessinsider.com ...
Sounds like a buying opportunity coming up.
profit taking before capital gains go up.
Sounds like a buying opportunity coming up.
*******************
My thought exactly.
Exactly. Gold would need to drop another 100 dollars/oz before touching the bottom of its 10 year trend line.
I think the gold and silver markets are in a bubble and its going to burst sooner or later. Then again, I’ve been wrong before.
There are good reasons for that perspective, too. So many asset classes have experienced major bubbles in the last couple of decades . . . I figure it’s only a matter of time before commodities go through the same thing.
This is a pull back, but its also more.
All of the currencies are heading to the door, trying to become the “low cost provider.” As the dollar dropped, gold went up. Now the Euro is dropping like a rock, so the dollar strengthens. Thus, gold drops in relation to the dollar.
In the end, if we keep printing money we will have more dollars chasing the commodities. That will force the price up again.
If you are in this for short trade, this is not the week to be long. If you are in this for the next couple of years, long is the trade. At least that’s my opinion.
In any event, having physical gold and silver make it harder to sell in a “panic.”
It will retrace some more. Then it will go up.
Pump & dump has been the only game in town for at least 15 years. No reason to think they won’t do the same to metals.
If there was a solid quarter of even a faltering recovery I would agree with you, and you may be proven right.
Still, I think people who have some precious metals will be glad of it.
Gee, looks like I called it at $29,xx when the pumpers showed up up yelling BUY, BUY.
If I recall I said pull back to maybe $25 then look to get back in.
I think you have the right approach. The US$ is a huge bubble. Gold is going to correct a little and today may be a good day to buy. Agricultural land and land with water access will be more valuable than gold soon.
Just got done fighting a bunch of freepers who can’t see beyond their social issues to realize the house is coming down around them. I agree with them for the most part, but i can’t fathom how they can get so caught up in social issues when they will be looking for something to eat in the next few years.
Yeah, I remember a couple of guys talking about 25 and 26 at the time. Their (your) comments sparked the idea in my mind that, with tens of tillions of dollars being vaporized by the bubble bursting, a $600 billion loan would be irrelevant, meaning we would stay in deflation. Meaning the “inflation hedge” metals would actually be worth LESS. Meaning the runnup in price was a temporary emotional reaction to the loan.
I’ve told my wife that if people lived to be 200, anyone who simply watched the markets would, by age 120, learn enough through osmosis to earn all the money he needed just playing the markets. Much of it becomes intuitive. In this case it did prevent me from buying though...
I buy and sell scrap gold/silver. We sold to the refiner last week when both were way up. Knowing it was due for a correction and that my refiner (and personal friend) sells me Eagles at spot price, we held on to the profits from last weeks scrap and went in this a.m. and bought 150 Silver Eagles. All uncirculated 1996’s and still in the original tubes.
It’s nice to have friends that are willing to help out. I still say that silver will hit $50 around in the first or second quarter of 2011. We’ll have to see....
And yes, YOU WERE RIGHT, TOO!!
In five days gold's dropped about 10%. If we had a gold standard that would be called 10,000% hyperinflation.
The government’s pathetic “highly publicised” printing of $600 billion cannot stave off tens of trillions being wiped out in all the bursting bubbles. We seem to be in a deflation spiral that the government cannot control.
They hate it. The western world’s credit based economic paradigm DEPENDS on the economy being “bigger” every year - effectively monetizing previous debt. This deflation, if unchecked (and so far all they can do is anemic slight of hand), will be the death of us - or at least our culture as we know it. I am speaking of the civilized world, not just the US.
And on Drudge yesterday, we had the bad economic JuJu coming regarding Portugal, Ireland, France, Greece, Spain, et al.
I’m very interested in seeing what happens this Christmas buying season.
On a side note, it is very sad that such a spectacle carries the name of our Lord and Savior.
All boats go down when the tide goeth out.
Commodities will go down too. Boats have to be sailing to avoid getting stuck in the mud.
>>Sounds like a buying opportunity coming up.<<
I agree. Kinda like when the housing bubble burst in 2006. And that is a buying opportunity that is STILL “coming up”.
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