Gold and Silver Dive today

I just noticed Silver dropped $1.25 already today, and gold dropped $25, so far.
The bubble is bursting?

 

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I think the proper metaphor is "some air is leaking out of the balloon while the child holding it takes another deep breath."

 

it cant go up forever! there has to be a point of leveling off and i think that is close
At hand

 

The Dow is down, so is SP and NASDAQ, All ags except cotton, Oil, Copper, Gold, Silver & Platinum.

 

I don't know about gold, but as a silver collector I was expecting it eventually to plateau and stabilize at a certain price, which might be what we're seeing. An adjustment of sorts.

 

BUY! BUY! There is a shop in town that sells silver eagles at $1 over spot (he has a collectibles shop and also buys PM). I think I will see if he has any in stock today.

 

Big Dip. Time for me to go out and BUY!

 

Silver has gone from 29.49 high yesterday to a low today of 27.375. There is a decidedly negative attitude in the market and precious metals seem to be included in that. But there are reports of "non hyper" inflation. and the USD and EUR/USD seem Ok for PM, but individuals seem to be going to cash, and more shorts will jump into the stock and PM markets to drive them even lower.

I see several stocks that appear to be bargains, but I am unsure how much they will decrease further. A flattening of a day or 2 would make me feel better about buying more. I would advise ( for what it is worth) thinking of doing similar for PM, or piecemeal purchase a portion over several days or weeks, JMHO.

 

On the positive side, this appears to be just another scary drop that seems to happen once or twice a year before the next leg up.

On the negative side, the market is training people to buy the dips. One of these dips will turn out to be a major crash and people will go to the bottom fully loaded with gold and silver acquired during the "dip."

Knowing the difference will be the key to success.

 

I think almost every trader would like to know how to do that

The other old sayings about " The trend is your friend" and " Don't fight the trend" are sometimes a better than nothing indication.

Jim

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it;s time to sell your platinum and palladium. and buy gold and silver. those two were overpriced by several hundreds dollars.

 

Suddenly it feels like PM's have taken the real estate motto....

Prices are low! Now's a good time to buy!!!

Prices are high, they will only get higher, don't get caught out of position! Buy now!

 

I agree. The trend is still up unless/until the price closes below about 1250. If it does, it might take some soul searching.

 

As stated in an earlier post on this thread, went out to get more silver today. Dealer friend of mine in Sweet Home, Oregon said he would sell to me today @ spot or I have the option of waiting until Mondays close. Which ever price is lower, Friday or Monday, I can buy and take home at the lower price. Met his new bride today and Jerry is a new man. He has gone from quiet, no sense of humor, never smiles or laughs, to the most happy go lucky, roudy, outgoing, funny, carefree person I've ever met. It's easy to see why. Wow. Going to buy some other coins from him soon before the honeymoon is over.
I think perhaps silver is going to just bounce around for a couple of weeks, then start moving back up. Jusy my thought. No argument intended.

 

Love does that to you. The power and gift of love is also its curse.....

 

fools-gold: I know you're right!

 

On the long term chart, you probably are right, but on the shorter term chart from about the 1100 mark, looking at it "technically", it has tested 1320 level twice this fall/winter and rebounded upward, That is the level I would watch. Interesting to watch. Next support would be about the 1290 mark (fibonacci retracement), and that would also be more of a psychological level also being under 1300. All IMO, don't invest on comments from the internet

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If anything, palladium is underpriced, not only is Russia expected to run out of Palladium stocks later this year, but Norlisk Nickel, the biggest producer of Palladium, is instigating a new mining process that involves the chemical extraction of Copper and Nickel, which is much more more efficient at extracting base metals, but not noble ones like Palladium.
In addition to its role as an inexpensive alternative to platinum in catalytic convertors (and the use of it compared to platinum is getting more efficient all the time), palladium has unique properties that no other metal posseses, such as the ability to absorb hydrogen, and also a recent story involving its use as an ingredient in a new form of toughened metallic glass. As most of us already know, the US Mint will also start issuing palladium coins on a regular basis very soon.
I think palladium may well have gone up too fast in the past couple of months though, I agree, and some of the hot money will need to come out of it before it starts to proceed to the next stage of the bull. But believe me, the long term future of palladium is very rosy indeed.
Sadly, I don't want to risk selling any of my palladium in the hopes of a dip. With VAT at 20% in the UK, on top of the dealers premium on the buy back, palladium would have to drop very substantially indeed for it to be worth my while, so I'm not willing to sell what I do have because I'm not sure enough about how far it will drop in the short run. I will definately be buying more on on any substantial dip though. All things considered, palladium deserves to be priced much higher than platinum, and I expect that this will be the case one day in the long term...

 

When I look at a chart, I just plot a simple trend line. I just went to stockcharts.com, one year HLC weekly chart for GLD, plot a line connecting the two lowest points. I don't really go for anything more complex than that. That gives me about 1250 -- close enough. That's my super-secret trend following method. I've been using it for years.

 

With the overhang of national debt and the necessity to debase the U.S. dollar as part of the strategy to pay it off (other parts of the solution would include raising taxes and reducing social security and other benefits) the fundamentals supporting precious metals could be in place for years, perhaps decades.

In the short term, PM prices have dipped as a result of the improved appetite for higher risk assets (viz. stocks). The extension of tax cuts and the 2% payroll tax rebate back to consumers will help prop up consumer spending through at least part of 2011, but like a sugar high, it will start to wear off later in the year. At this point, it will become apparent that there is a better than 50/50 chance that we will re-enter another recessionary phase in the economy.

Unless I start to see some major improvement in employment figures and the housing industry, I will ride out any dips for the foreseeable future.