If anyone's been following, you know the market had a couple of VERY bad days. Of course, this is normal IMO, as the economy is being severely manipulated to create a false sense of prosperity. Is this correction a sign of bigger things to come? Obviously only a guess, but I have a feeling that, yes, another deep slide is going to occur, and precious metals will finally start regaining their true worth, within the next few months.
Summer is the time people live large; vacations, travel, weddings, etc. In the winter (aside from holiday spending & heating fuel) most of us are stuck indoors and purchases decline.
Things are going to start getting mighty interesting.
Hang on to that gold
Joe
Joe, you woule have thought that will all of the countries doing poorly and the threat of nuclear war......prices of noble metals would be on the raise and going through the roof, right?
(08-22-2015 02:34 PM)Bigtony Wrote: [ -> ]Joe, you woule have thought that will all of the countries doing poorly and the threat of nuclear war......prices of noble metals would be on the raise and going through the roof, right?
Yep, exactly. That they're not just shows how badly the manipulation is. Normally, when paper based assets are weak, precious metals go through the roof. Why isn't this happening? While the economy is doing better than 2007/2008, it's still in the crapper, IMO. Then you have the situation in Greece, the Chinese just devalued their currency, and a bunch of other stuff. Gold has to start spiking soon. There's only so many magic tricks the fed can play before it all goes POOF.
Joe
Well I'm off to seize the Nazi train of gold. Anyone else ?
The Federal Reserve is in a catch 22. If they raise rates, the gov is screwed on interest payments and Wall St. will go in the dumper like 2008 because Treasuries will be the loverboy real quick for big money. Which makes the Federal Reserve richer, btw, but the bad boy on the block for the gov! If they QE, they risk higher inflation and fatten the banks with margin money so the corporations can buy back their own stock with cheap borrowed money, because no one else is buying but the short hedgers. The VIX shows that retail stock buying is in a coma. So yes, we're in for a blow. Monday will make or break it either way. The Federal Reserve is crapping their pants right now. They're going to be the poster boy for bad times in either direction from two camps!
Will gold and silver go up? My guess is yes. But, we have China and the PIGGS to worry about. And there are one hell of a lot of paper GLD/SLV contracts out there on COMEX. Above 50:1 and that ain't good. But, there is also a downturn in miners. They're going bankrupt or shutting down for maintenance. So in the real world, regardless of manipulation, "no or short supply" but "more demand", the price goes up. But the other aspect is inflation. If the Federal Reserve ups rates, even 1/4 point, people that don't cash in their GLD/SLV contracts are nuts because they'll never get the silver or the gold, just the cash. And if they don't do it quick like and convert to IN YOUR HAND Silver and Gold, if they can even get it at that point, they're out in the cold with dollars that were worth more yesterday than today.
IMHO!
Stay cool my friends. HOLD!
ODF
(08-22-2015 09:32 PM)Ohio Dirt Fisher Wrote: [ -> ]The Federal Reserve is in a catch 22. If they raise rates, the gov is screwed on interest payments and Wall St. will go in the dumper like 2008 because Treasuries will be the loverboy real quick for big money. Which makes the Federal Reserve richer, btw, but the bad boy on the block for the gov! If they QE, they risk higher inflation and fatten the banks with margin money so the corporations can buy back their own stock with cheap borrowed money, because no one else is buying but the short hedgers. The VIX shows that retail stock buying is in a coma. So yes, we're in for a blow. Monday will make or break it either way. The Federal Reserve is crapping their pants right now. They're going to be the poster boy for bad times in either direction from two camps!
Will gold and silver go up? My guess is yes. But, we have China and the PIGGS to worry about. And there are one hell of a lot of paper GLD/SLV contracts out there on COMEX. Above 50:1 and that ain't good. But, there is also a downturn in miners. They're going bankrupt or shutting down for maintenance. So in the real world, regardless of manipulation, "no or short supply" but "more demand", the price goes up. But the other aspect is inflation. If the Federal Reserve ups rates, even 1/4 point, people that don't cash in their GLD/SLV contracts are nuts because they'll never get the silver or the gold, just the cash. And if they don't do it quick like and convert to IN YOUR HAND Silver and Gold, if they can even get it at that point, they're out in the cold with dollars that were worth more yesterday than today.
IMHO!
Stay cool my friends. HOLD!
ODF
Yes, it IS a Catch-22. They are going to surely have to raise the interest rates soon, as how much longer can they give away near free money without dire consequences? That was one of their dirty little magic tricks to prop up the economy and make it appear more active. But, as you said, raising the rates could very well cause catastrophe. As far as converting precious metal contracts into hard money, good luck with that! They have spread themselves so thin with all of that bologna, it's worse than a shell game. We've actually had to buy/borrow gold/silver from other countries to cover large institutional orders that simply couldn't be filled. Imagine if there was a run on the contracts? While Greece is a scary, scary thought, they are a pimple on someone's ass compared to the looming Chinese problems. If the Yuan has troubles, so to does the dollar. And that could be a recipe for disaster.
Joe
ODF/Ed and Joe.....all good valid points, yet the market went down yesterday by about 500 points and the smaller marketrs (S&P...etc) also went down.
What gets me is the the traders and financial folks say now is a good time to buy in and don't taked your money out to put it into cash.....
But hold it is and hopefully we can all ride it out
(08-23-2015 02:39 PM)Bigtony Wrote: [ -> ]ODF/Ed and Joe.....all good valid points, yet the market went down yesterday by about 500 points and the smaller marketrs (S&P...etc) also went down.
What gets me is the the traders and financial folks say now is a good time to buy in and don't taked your money out to put it into cash.....
But hold it is and hopefully we can all ride it out
But... But.. I really meant HOLD your Gold&Silver! If you think your going to get hurt, put a stop order in first thing Monday morning. Get up early folks. Looks like China is taking another beating.
ODF
I will never understand why the price of platinum is below the price of gold.
I thought it was more scrace then gold and that would put it higher but maybe that asteriod they are looking to mine has brought the price down sooner.
Another BAD day! I was watching as the market opened this morning, and my jaw hit the floor when it was at 1,100.
Look for a possible rebound tomorrow, as the hedge funds and fat cat investors will all jump in like sharks for the good deals on stocks that took beatings, today. There may even be a mini rally, but a lot of the average, individual investors (you & I) are starting to get queasy, and will start taking out their dough, so that'll complicate things.
Extreme volatility is normally a signpost. Of what? Who's to say, for sure, but I think the waters are starting to get very rough.
Joe