Gold and silver are behaving Juss fine!

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yup

 

When it goes back above $1000 everyone will get excited. Inevitably some folks will try to sound profound by registering their intent to sell due to the belief that gold prices are cyclical. In reality, sometimes they are and sometimes they aren't. They were pretty cyclical in the 80s and 90s. They weren't during the 70s when gold went in an irregular manner from below $100 to above $800, finally settling down in the $400 area. Those people who sold after gold moved from $100 to $200 are probably waiting for the cyclical move back to $100 to buy again. Now is one of those times when gold is working its way to a new higher level from which it will probably start to behave in a cyclical manner again. No, I don't know what that level will be except that there seems to be a high probability that it will be much higher than $1000. That's the long-winded way of saying that I don't think this is a good time to sell your gold coins.

 

I'm waiting for it to go down to $50 , then I'll buy . LOL
Some people really are waiting for it to go back to $400 , & then they still wouldn't buy .
rzage

 

Get real, you don't even know where supplies are coming from. Everyone can just speculate on demand demand demand and MORE demand but supply? Supply DOES NOT stay at a constant, excuse me. Geez, that's economics 101 out of the window.

 

er... who were you aiming this at?
it sounds a little angry

 

Rock&Gem magazine July 08 seems 2 think Cresson Project will help fill some of that gap at 300,000 troy OZ mined in '07 and producing steadily. Cost to recover 1 troy OZ is at $334, so profit is there for them. However, Vietnam continues to accumulate(sp?) gold and has passed India in ammount imported and there is only so much gold in the earth. Maybe we will find gold in space next?

 

Since I'm a newbie, I cannot comment on personalities since I don't really know anybody yet but I'd say GX is trying to drive home the point of economics 101 a bit at somebody. Lol

 

I won't comment on this too much....NOW.

Look what has happened in the mortgage industry and banking industry in the past few days.

I work in a coin shop "part time". Lately it's been full time. Why? Our economy sucks. We have been buying gold and silver all day long. Yesterday it started going both ways. Fannie Mae and Freddie Mac hit the news after IndyMac collapsed.

Today told a lot. We bought a lot of silver as we have been BUT we had some huge sales as well. The sales end has been lagging except regulars and other dealers. Now it's exploding.

So are gold and silver behaving just fine. Guess one could reasonably argue that point. Not too fine for most folks though.

This upcoming week should be REAL interesting.

 

There are some key points that I should clarify.

All gas, metals, minerals come out from the mines, with a certain percentage recycled for metals. Most commodities were priced way too low before 2003 simply because there was little demand and working conditions were absurdly harsh with high death rates, etc. Most people either ignore this fact or just assumed that metals come from bank vaults.

It was in 2003 where most commodities, in particular iron and copper, rose in particular from the Chinese market demand. It would be absurdly foolish that no companies took the opportunities to start developing back then. 5 years later today, if you say no companies are still looking to develop new mines and resources, something is obviously wrong. Gold in particular has been a popular commodities for years and most companies would not ignore if there is an extremely large ore body and economically viable. Mining cost per ounce of gold is perhaps about 300USD like TheNoost said, so there are huge money to be made. Last year, a new gold mine opened in China - Jinfeng mine is said to produce about 120,000 oz of gold. A mine in Mongolia, Oyu Tolgoi is scheduled to open later this year with full production rate scheduled in 2010 at 330,000oz. I'm sure there are other major gold mines coming into schedule within the next few years but those are the examples that I know offhand. China is currently being proactive, looking worldwide to buy mines - yes a whole mountain in some cases! I vaguely remember one Chinese company buying up an entire mountain in Peru and wanted to move an entire village for mining.

The situation is different for other metals, let's say platinum and rhodium. There have been no new sources identified other than South Africa and Russia. South Africa still produces about 75%+ of the world's platinum supply, which is quite scary to think about if South Africa runs into some conflict.

Agreed, when people feel troubled with their local currency, this will increase demand but when it's over, prices just fall. My point is, there has never been a time where metal prices have held high the whole time since 2003. Will it keep on rising? I am quite doubtful. In the short term, yes it might but long term, definately no. High prices does not necessarily help everyone. And just in case you don't get my point yet, can I remind you how expensive it is to drive these days. Not pleasant.

 

I spent a long time in West Africa and that quote reminds me of an American company that was mining Rutile in Sierra Leone. They actually were mining a huge area and had made a lake out of their excavations. There were swimming pools, tennis courts, satellite TV and it looked exactly like suburbia. All of this about 200 miles from the capital city and in the middle of a hot, steamy jungle.

We were told Rutile was mined there to be used as a component of the paint (or whatever) used on missiles, rockets and other high altitude thingys.

So, I've seen things that he is suggesting - it happens!

 

Cloudsweeper:
Back above $1,000?
When did that happen before?

 

Two rules. One, anything can happen in the short run; two, what goes up must (and eventually will) come down. The End.

 

its juss fine because people are buying gold since the US dollar is becoming monopoly money.

 

On St. Patrick's Day this year the intraday high price for gold was above $1000.

 

Regarding rule two. When will gasoline go back to $0.299 where it was when I was in high school? When will silver go back to $1.29? When will bread return to $0.18 per loaf? In fact, when with the Voyager spacecraft return to Earth?

There is no "must."

 

Ok guys, start throwing those spouse coins in the melting pot!

 

Gold hit past 975 and up to 980's in London. Silver is well over 18.00. Things appear to be looking up! :hail:

 

I have to disagree with you, Cloud, sure there is. In fact, that's the only real thing we can count on, change. It's inevitable.

Let me edit that. Taxes too.

 

The only must in this scenario is when there is no more a paper and coin denomination system. If one continues to exist and people collect them, then the "must" you talk about will never materialize.

We will never smell fuel under $2 ever again. Oil will never drop to below $1.25 and will probaly never taste fresh quality bread under $2 a loaf again either. Here in the islands we'll never tast fresh quality bread under $3 a loaf. Currently I pay nearly $5 a loaf and fuel is $4.32 and rising.