I hope it keeps tanking another 25%, fingers crossed Edit: updated screenshot as prices kept falling.
Gold is down almost $200 since August. Slabbed St Gaudens are starting to sell for around $1350. If we can get another couple hundred to the downside I will take some serious looks for sub $1000 coins. I'm really hoping the Indians come down just as much. I want to work on a type set if gold gets low enough.
It's getting exciting that's for sure. I used to have to plan to be able to buy 20 ozs. At these prices, I can pick up an extra tube of generic rounds and not even move money around in accounts.
I'm excited for the same reason. I had stopped buying silver when it became (in my opinion) overpriced a few years ago. At this rate I will be stocking up again pretty soon.
I love it. I can stack heavily for years if it stays low. Just as long as it shoots to the moon 25-35 years from now, I'm happy as a clam.
I got to say I'm tickled, it seems like people have to start threads about how thrilled they are silver's price is dropping. Is this to convince themselves that they're doing the right thing by investing in silver as it goes down? I've looked at every angle and can't see ANY reason to own gold, and even less so silver as an investment or a hedge. Modern history just doesn't support it. Just my 2 cents. Buy it for it's attractiveness, not for investment.
I can't see any good reason to buy it as an investment either, but as a hedge it makes good sense. A dollar worth of silver will always be a dollar worth of silver, regardless of inflation.
My gut feeling is we'll see the bargain hunters kick in and an upward trend soon, then it'll probably fall even lower sometime after that. It just seems to generally be the case, looking at historical trends. Then again, my brain tells me nobody really knows what will happen. Soooo...
Yea, once it gets low enough, increased demand balances it out. What happens after that? Anyone's guess.
Metals dropped due to the Federal Reserve announcing the end of QE. The Fed is no longer buying bonds, so treasury auction rates will start to tick back up. The trickle-down effect is that lower grade bonds will start to offer higher rates of interest. As this happens, physical commodities drop in value. That's how things work.
I hate trying to pinpoint an expanation for fluctuations in the economy in hindsight. Sure, a stronger dollar means less people will turn to gold (in the US) but it seemed obvious the market was a giant bubble waiting to burst in the first place. Also, America isn't the only factor, even if it might be the strongest. One thing remains constant -- people are people and history will repeat itself. They see a tornado and run. Remember that scene from Natural Born Killers where Mickey *runs into* the tornado to escape from jail? Oliver Stone sure is a genius.
PM is down for a number of reasons not just the fed bond buying. Republicans have full control of the congress. Dollar is strongest currency at present. Employment numbers are good. Lots of other things pointing to a strengthening US economy in macro terms.
Starting a few years ago Bank of Russia was buying up gold like there was no tomorrow, they were acquiring a rainy day fund and the rainy day has come in the form of USA and European sanctions and BoR is slowing filtering out previously purchased gold to prop the economic sector as oil and natural gas revenues plummet.
No way they've got enough gold reserves to last for long, sanctions arent' going to way and the russian economy is crumbling coupled with decreased petroleum price
Reading a link: http://www.caseyresearch.com/articles/the-truth-about-chinas-massive-gold-hoard Estimate of russian gold reserves is 1068 tons. at about 2% of GDP, contrast that with the 8100 tons of us gold reserves (and is 2% of gdp)
