The Killing of Osama bin Laden and the Price of Gold (and Silver)

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Oh really? The USD value increased because of this osama incident? This only goes to prove my theory more, that osama has been dead for quite some time.... And this is just a publicity stunt.

Ugh.

 

I have noticed a massive price drop in silver over te past few days and hope it drops a bit more so I can get better prices when buying.

 

What so ever! he has nothing to do with bullion trading.

 

In the past 4 days silver has dropped 20p.

 

sigh, time ot spend more money!

 

Well, when should we buy? Think the prices are going to go down more, or should we bite the bullet and buy now since prices are already so low?

 

I would say bite the bullet before they go back up.

 

bingo... Id buy during the weekend while it is static...

 

Hello, my first thread here. I was referred by PeakOil.com. I also used to be a member at GoldisMoney.com

I think one of the things to watch is the oil price and how it is tracking with PM prices.

Oil down-ticked to 95 on Tuesday May 17, at the exact same time as the US $ hit it's peak-for-the-week.

Which also happened to be when Silver made it down to about $32.85. About 11:10 AM Eastern time.



It's almost like watching a transistor with gain. Oil falls 5%, silver falls 30%.



For sure silver has been tracking oil the last several weeks. When oil made its highs, that's when silver got to US$48-$49+.

That silver tracks with the oil price at times, one can see by observation.

The reason for oil trading as it does, we might need a whole forum category for that. The way world affairs & the world economy & currency trading works, a reduction in geo-political in-stability tends to correlate to a lower oil price. If silver is tracking with oil at that time, then the silver price falls. That's the behavior we saw last week.

Also, I think, there was some price manipulation going on - a hypothesis. The huge dive in the silver price occurred before the official announcement about Bin Laden, but after the actual incident ... nice to be an insider, I guess.

Because much buying & selling is computerized, with limit stops, many times when a commodity takes a dive, people sell silver because their computer is programmed to sell silver when it sees a particular price decline. Combine that with the recent consecutive increases in contract prices, the amount you need to "put down" to buy a 1000 ounce silver bar - it used to be really low, like $1 an ounce. now it's, I think, about $20,000 for a 5000 ounce contract.

So when silver hit that US$32.85 on Tuesday after the official announcement about bin Laden Sunday night, there was a lot of "stuff" going on in the markets.

Silver tracking with oil, perceived reduction in geo-political in-stability, increase in margin requirements (is that the word ?), snowball effect on the downside when limit orders cause more selling ... all forces that push the price of silver down.


Sometimes I wish they would require people to put up all 100% - they want to buy 5000 ounces, they put up the full amount, $175K when silver is @ $35.

But maybe there's some legit reason for the margin requirements to be lower.

 

Prices as they stand you wouldn't really miss out by buying now.

 

How prices of metals are affected by the death of Laden. I don't understand. Only the trading will be affected for a day or two, or say it for a week. Not more than that. With every big incidence the trading is affected. So, its normal. Nothing to panic.