Of course the cartel isn't going to let the week close above $1800 and $35. That would just trigger a massive buying spree on Monday, and we all know they aren't having any of that, right? 😁
Great... now they just need to figure out how to supply themselves with gold(III) chloride. Basically, they aren't conjuring gold out of thin air. 🙂 What's next? 🙂
You're right. After the election, we might see a temporary fire sale on everything, including PM. Of course, you'll have all those pundits claiming the bubble finally burst, which will probably be one of the few chances left to pick up more 😁
Unfortunately, we aren't seeing any extra production from the Arab states. They simply can't manage it... Ghawar has hit its limit. If Bernanke had actually said what his buddy implied, gold would have smashed through $1900 instantly, and silver probably would've hit $40. They aren't just desperate; they're clueless, with nothing left to do but print money. Seen that before.🙂
quiettrucker12, the Federal Reserve only knows how to do one thing: print paper. This US Dollar strength is just temporary, especially when you compare it to other assets that are also losing value fast. Honestly, the Federal Reserve is basically just racing to see which one can destroy its own currency first.
People aren't seeing any deflation here. Deflation means your money actually gains purchasing power. Anyone who buys groceries, pays utility bills, or deals with the daily cost of living knows their dollar loses value every single day.
What exactly are central banks going to do about it? 🙂 Point a gun at Chinese people and Russians and tell them they have to use the dollar? It’s actually the central banks themselves that are working so hard to destroy the dollar, the euro, the pound, and everything else... Throughout history, plenty of people assumed their policies would last forever, thinking nothing could ever stop them. But unfortunately, there's always a critical mass of workers and regular folks who see things differently than those in power. 🙂
First off, they say "energy needs," not just oil. Second, if we were actually pulling enough oil from our own backyard, there’d be no reason to be in Iraq or trying to force democracy on Libya. Third, the US is arguably more socialist than any European nation. Just look at how many people work for the government—from local offices all the way up to the Federal Reserve—not to mention the roughly 50 million people on food stamps and those massive unfunded liabilities in healthcare and social security. Also, the American economy is driven almost entirely by consumer spending. There are really only two reasons why the dollar remains the world's reserve currency: one, our military might, and two, the fact that oil is traded EXCLUSIVELY in dollars. Right now, the dollar is the fastest horse in the glue factory. 🙂
The answer is pretty straightforward: all that money the Federal Reserve printed just went straight to the banks so they could cover their OTC derivatives, MBS, and whatever other financial magic tricks they’re pulling. Of course we aren't seeing hyperinflation yet—that cash is still just sitting there with the banks while they pretend they're actually solvent.
If you look back at Greenspan’s forecasts over the last decade, he’s actually been pretty spot on. In my book, the Euro vs the US Dollar goes down first, then the dollar follows. Unless we see exactly what Jim Willie laid out in his latest piece—that the Eagle finally decides to ditch the dollar as the standard for oil payments. If that happens, we'll have much bigger problems to worry about🙂
If you take a look at Greenspan’s predictions over the last decade, he’s actually been pretty spot on. In my book, the Euro vs the US Dollar goes first, then the dollar follows. Unless what Jim Willie wrote in his last post actually happens—that The Eagle decides to ditch the dollar as the payment method for oil. If that happens, we'll have much bigger problems to worry about.🙂
There’s a dead simple, non-invasive way to check if there's any Tungsten hidden inside a gold coin: just use ultrasonic testing. You can pick up a device for a few hundred bucks, so I honestly don't get how any reputable jeweler or dealer in the US doesn't have one on hand. http://www.youtube.com/watch?v=rh0Mcagio5Q I'm with you on sticking to one-ounce investment gold. It’s especially smart when dealing with those classic coins you see all over the States—the ones that are easy to identify and nearly impossible to fake, like old Eagles or Sovereigns.
Yeah, they claim everything is rock solid, yet last year they announced they’d peg the franc to the euro at a rate no lower than 1.20. Why bother? Because they don't have a choice. They're forced to print money in this insane financial landscape where having a cheap currency is somehow seen as a virtue. Right now, they're basically the least attractive option at the beauty pageant. Besides, they've already bowed down to the Americans—saying goodbye to any semblance of banking secrecy for US citizens—not to mention all those scandals proving Swiss banks aren't nearly as safe as they used to be.
nimblepanther18 said:I’ve been reading several articles suggesting that Germany is headed straight for a recession. If stocks take a dive, what does that mean for metals? dustyheron5 shared an article claiming that JPMorgan Chase is recommending gold purchases right now, but I personally struggle to see how that makes sense if we are actually entering a recession. Furthermore, when looking at silver—which is essentially an industrial metal that tends to peak when industrial demand is high—I would actually expect silver to see an even steeper decline than gold. Because of this, I intend to hold off on buying until a correction occurs. Am I miscalculating here? What are your thoughts, or are there other factors at play that might prevent such extreme volatility in metal prices?
PS. Personally, I found the market's reaction to the announcement of QE 3 quite disappointing.
Wrong. It’s always a smart move to hold gold when the country is in crisis. Silver plays both sides as an industrial and monetary metal, making it a win-win. First, its price doesn't really swing based on industrial demand because it's price-elastic (it accounts for such a tiny fraction of the final product cost that whether it's $30 or $150 doesn't matter). Second, most silver is just pulled out as a byproduct of copper, lead, and zinc mining. That means if industrial activity drops, supply will naturally tighten. Third, just like gold, people try to protect whatever little they have left during a crisis. Buy gold at $1,400? Not many people can afford that. Buy real estate or farmland? Sure, if you're one of those vultures in the finance industry... In reality, silver is what's left for everyone else. Of course, if you're just looking to gamble, I can't help you. 😁