Huge drop in gold!

Nows a great time to go coin hunting. If you couldn't afford the coins before, now may be right for you.

http://online.wsj.com/article/SB100...4123590556556.html?mod=WSJ_hpp_LEFTTopStories

 

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if you can find any.....

 

I'll wait for it to break $500 / ozt.

 

Why would you not be able to find any, apmex has 1 oz bars for $40 over spot.

 

No worry, the Mint will have a warehouse full of it this Thursday......BUT, what will the price be?????

I wonder what the $50 Proof Gold Eagle goes for?

 

so true.

 

I'm looking local, nothing going on around here....

 

That sounds about right...I'll guess $1860 for the $50 AGE.

 

Neither am I, as per the law laid down by my wife.

 

I read an article stated that people who hold physical gold and/or silver bullion aren't in risk because they don't have to sell them right now. They can hold them until price go up. Only gold and silver paper are at risk. The big investors hope small investors will sell their physical gold and silver due to big drop in value per oz. I guess people who invested physical gold or silver are still winner and those who invested on gold and silver paper aren't so lucky at this time.

 

The only paper losers are those holding call options on SLV, GLD, etc. The equal side of those holding put options are making better gains than the physical holders , but will have to sell eventually ( according to their expiration date. The other paper loser are those big timers ( such as bullion suppliers, and such that have contracts on gold or silver in the future. Most will lose all value as it stands due to not wanting to take delivery of gold/silver at a price above value. Contract sellers made out great. They can take profits or buy an offsetting call contract for much less and enjoy profits.

Owners of SLV or GLD shares ( paper) have the same proportional loss as physical holders as their shares do not expire and if/when the value rises on the physical metal, their share value will also.

The idea in the article you read is to encourage the uninformed that only the hard physical metal is 'safe' even as it loses value. If paper and physical are considered with an open mind, GLD/SLV shares share the same value directives. There is no big time ETF or bullion dealer that only deals with physical, they must deal with paper to some extent for hedging as well as for future inventory control. They are just trolling for suckers. IMO.

 

I don't know how they convince people that their physical holdings are not losing value, but somehow they do convince them.

 

Great post. Kind of reminds me of the skit on the original SNL. Dan Ackroyd plays a radio talk show host and is asking for people to call in. No one does. Then he makes a somewhat inflammatory remark, still nothing. He gets to the point he's advocating killing puppies and all other kinds of absurdities simply to try to get someone to call in to talk to him.

In the same vein, salesmen like you describe Doug will say or do anything simply to generate "action". They seriously do not care if they convince you its a sham and going down, play on fears and convince you its going up, or what. They simply want some action, as that is what lets them buy their Beemers and the summer house on the lake.

My main defense? REALLY pay attention to the wording they use. Any use of intentionally inflammatory language, or unsupported broad assertions, are my first red flag its a sales pitch, and not real research.

 

Yesterday, I went to three different pawn stores. One said, "All gone." Other two of them said same thing, "We do buy them, but we don't sell them. If you want them, then find your local coin shop to obtain them."

I guess they won't accept the loss. Oh well.

I wonder if bank will offer gold/silver bars or coin shop is only one that would sell them?

 

Hope springs eternal, as the saying goes. I don't see why individuals could be expected to divest themselves of their holdings on a dip like this unless it was out of dire financial necessity, and that even that would be at all widespread seems to be wishful thinking.

 

If its a dip. You are assuming it "has" to back up short term. Some dealers held their pm in the early 80's all the way from the 40s down, finally selling it off for less than $10. What if this is a temporary reprieve, an opportunity to still sell before it corrects more?

Just pointing out sir the possibilities go both ways. Its not a black and white scenario only, like much of life.

 

Good points made in both of the two previous posts. My thought is that many who bought gold and/or silver bullion might've had a reason such as an inflation or currency collapse hedge rather than to resell for a profit or to avoid a bigger loss. Those folks probably aren't going to be stampeded by the present situation.