why is gold and silver going down right now?

Argumentative... THEIR SOURCES are gov't sources.

 

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OK then if they come to the forum I will discuss it with them, but I saw nothing that indicated this, and you apparently have no idea. In any case, like the matter of the gold standard which you got wrong, this also has nothing to do with my post that you originally responded to. The point was that a gold standard does not hinder economic development and in fact it enables it. The history of the USA, as I stated above proves it.

 

Now that gold and silver are up strong today, maybe we should just change the title as to why UP?? If one looks at the Gold, Silver and the EUR/USD chart they will have at least 80% of their answer. IMO.

But for many .....Nah, I won't say that.

 

^I don't think it changes anything that I've said. I've maintained for a long time on this forum that one needs to have an investment plan based on their goals, risk adversion, and requisite research (as best as they can get there) and then stick to it. Unless one is day trader then these short term swings have no bearing on this. Gold and Silver bullion buying is for long investing/safeguarding/getting out of the system, only.

Silver & Gold reach new highs, everyone here is crying crocodile tears in that they wished they had bought more when it was lower and long for just one more chance. Chance comes, and now they cry crocodile tears about PM bubbles bursting, should'a would'a could'a, and all that stuff. etc. Go get a plan.

 

Really? Dang, I guess I've been doing it wrong all these years. Maybe I've just been lucky instead of smart in that after 20 years in the market I've yet to lose a dime.
Guy

 

Personal anecdotes are meaningless on an investment forum as they can't be verified or followed. I would add, except for the hopium smokers, they don't provide any useful info either.

I do have some advice for you however. Try reading in the context in which it was given. Nobody was talking about the stock market of 2 decades ago.

 

2 decades ago...nor was I. Personal anecdotes aren't meaningless and I have proven them several times here. The entire market is made up of nothing but millions of personal anecdotes. The market as a whole, therefore, is the irrelevant matter.
Guy

 

I welcome your proof then relative to what I have said in this topic. I'll make it even easier for you. You seek to discredit what I said based on your abilities which you have not shared here. I will be glad to have that discussion if you like. Else, talk is cheap.

 

I have read reports that the Fed has leaned on a couple of large banking interests to sell their holdings. The reason is to keep the metal prices down to prevent the pressure from lowering the value of the USD.

Once a large amount of futures paper is dumped, the computer trading programs trigger a "sell" command, which also dumps on the market.

Also, many people have moved from gold to oil quite recently, and that also applies pressure to drive it down.

Today we see a climb. Now this can be because those who sold short, bought back in lower than the "put" and driving prices back up ?

Remember, PMs are a small underfunded market subject to wide fluctuations. Brokers make commissions when trades are made. Flat markets don't make people money. Therein lies the "bug". IMHO Stability in the PM market does not make profits. So it's forced to fluctuate.

 

^ PM prices drop is mainly due to money being flowing into equities as a result of improving economy. If Fed comes out and says economy will contract Q3 trust me PM will shoot up 5% and stocks' will go down in other hand.

 

Yep. Quoting from a report issued by the South Carolina State Treasurer's office re: the advisability of investing public funds in gold and silver:

"Similar to other commodities, the value of gold and silver is determined by supply and demand, as well as speculation. The Federal Reserve, the London Bullion Market Association, JP Morgan Chase, and HSBC Holdings have practiced fractional-reserve banking and engaged in naked short selling causing artificial price suppression."

Source: http://www.treasurer.sc.gov/Documents/Proviso 89 145.pdf

Unless you believe that the Treasurer of the State of South Carolina is a conspiracy theorist, I'd say this is pretty conclusive evidence of some hanky panky going on in the gold and silver markets.

 

I do not necessarily think they are conspiracy theorists, but neither do I see any evidence, let alone conclusive evidence on that point. It is hearsay at best.Why would a state treasurer want to engage in PM trading as their job is not fund raising ( state legislature and executive branch of the state) and any credit for increase in the treasury would go to them , and any loss would be attributed to the treasurer. PM is a high risk/ reward scenario and if I wanted to keep my job, I would discourage PM as an investment of public money under my care also. Only casino playing and lottery ticket buying ( not selling) are higher risk "investments", and at least the odds are known there unlike PM "investment".

 

hope that is true about my weight.. lol

 

Yes, it is possible that the Treasurer of the State of South Carolina is propagating hearsay. Then again, I would assume that someone in his position would have access to better data than I have. And this isn't the first time I've read that the Fed is involved in manipulating the gold market backed by some fairly convincing evidence to support that contention.

If what I've read is correct, gold is SERIOUSLY undervalued at the moment. And while I'm not quite ready to bet the farm on that notion, I am willing to "invest" 10% of my portfolio in gold bullion. I did that back in 1992 and it's doubled in value twice since then.

 

I think that 10% of total investments in commodities is a reasonable amount, as long as it is maintained by research and evaluation at reasonable intervals and adjustable to amount. Best of luck!

 

Thanks.

 

Before you draw conclusions, would it not then be fair of you to go and have a look at what evidence the SC Treasurer might have? (Especially if you wish to accuse the office of hearsay.) Else, it sounds as if you are simply refusing such a possibility without any evidence either way.

"I would discourage PM as an investment of public money under my care"

If PM as a investment of public money is such a horrible choice, then why does the US Treasury maintain a gold stockpile in the middle of an army base in Kentucky? It's an extremely expensive operation to maintain. Why does the Federal Reserve also maintain an even larger stockpile of gold at it's NY HQ again at great expense? If we have the US Secretary of the Treasury and the head of the Federal Reserve maintaining such a huge stockpile of gold, why is it the Treasurer of SC is wrong for wishing to do the same? There would seem to be no logic to this beyond that of one who doesn't trust gold no matter what happens. Is this correct or am I missing something?

 

Without having access to the data the SC Treasurer has access to, we can't know for sure whether he's acting out of enlightened self-interest or a bias against gold. But from what I've seen and heard, I suspect it's the former rather than the latter.

 

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I wonder if you bothered to read the "proviso" . Hearsay is when statements are made which the maker ( in this case The indicated state treasury office ) indicate are factual when no evidence is given, which is exactly what they did. If they have evidence, it wasn't included in the body of the paper , nor as attachments, thus hearsay. If you have the evidence , please submit the reference. Of course you don't, except possibly from conspiracy sites.

Of course you are. Mainly missing the context of the partial sentence you quote. I was saying in the previous wording that if I was a state treasurer, I would discourage PM as such an investment with public funds. There is a big difference between a state treasurer and the US treasurer and the need for Bullion as a trading asset. So you think that the US gold reserves are an investment choice of the US treasurer? He is going to buy/sell on the market for income? The SC treasurer is going to swap gold for what?

My opinion is that the treasurer of the state mentioned was pressured into the consideration by bullion or gold standard political interests, and the treasurer produced an unsupported evidence statement that appeased the pressure. I am sure they would believe it because they more than likely fall for the bullion storyline of manipulation, banksters, and all.

 

^Actually I double checked the legal definition of Hearsay before I responded to your post and I did read it. It clearly states why they believe there is price manipulation. It's only Hearsay if it can't be proven, IF asked. (source is the Wikipedia definition) Hence, my question still stands. On the second point, I see no difference between the state government of SC holding gold & silver vs the US government holding gold and silver.

"My opinion is that the treasurer of the state mentioned was pressured into the consideration by bullion or gold standard political interests, and the treasurer produced an unsupported evidence statement that appeased the pressure. I am sure they would believe it because they more than likely fall for the bullion storyline of manipulation, banksters, and all. "

I take it that you didn't read the Proviso then. The State Treasurer recommended AGAINST holding gold & silver of any form. It seems like a very odd position to take if they had caved against "bullion or gold standard political interests" and that they have been suckered into false tales about the misunderstood banking industry which really only has the publics good at heart. Seems to me they are not the ones who have caved to a certain storyline. IMO, the Treasurer's office gave a very balanced report that stuck to facts and not opinion.