Inflation goes up…PM prices go..down?

Discussion in 'Bullion Investing' started by Gam3rBlake, Jun 13, 2022.

  1. desertgem

    desertgem Senior Errer Collecktor

    I haven't seen much moderation lately unless they hide their tags.
     
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  3. medoraman

    medoraman Supporter! Supporter

    I agree, I hear of USD circulating widely around the world but never have heard pre-65 circulating. Problem with PM circulating is they would have to adjust what their value is daily based upon spot prices. Mexico I believe was the last country trying to circulate any coin with silver in it.
     
  4. medoraman

    medoraman Supporter! Supporter

    I agree. We are on a coin website. We know more about coins and investing in physical pm than almost anyone else in the world. Everyone has a political opinion, and usually they are divisive, so offering one in CT is not talking about anything we have special knowledge of. I know the bullion section is always most apt to do this, since investing in pm has economic inputs, but please don't go there.
     
  5. longnine009

    longnine009 Darwin has to eat too. Supporter

    Fed just raised interest rates 75bps. So silver closed up a few cents and USD closed down. Figure that one out.
     
  6. Santinidollar

    Santinidollar Supporter! Supporter

    Sadly, given the choice of respecting the forum, those who run it and their fellow members, there will always be those who think they’re clever by running their ignorant mouths.
     
  7. Michael K

    Michael K Well-Known Member

    If you know that PM prices are down, then now is the time to buy.
     
  8. Gilbert

    Gilbert Part time collector Supporter

    Did you resign?
     
  9. Gilbert

    Gilbert Part time collector Supporter

    That is not terribly hard for anyone with an internet connection.
     
  10. medoraman

    medoraman Supporter! Supporter

    Yeah, but how would you like to revalue your money every day, up or down, based upon a market like Comex? I know, someone snarky will make a comment how every day their money gets adjusted down due to inflation, but think about it. Maybe your quarter is worth more today than yesterday due to market movement, yet the seller does want to acknowledge it. Makes trade harder than it should be.
     
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  11. fretboard

    fretboard Defender of Old Coinage!

    No, prices aren't crashing they're just not going up as much as we'd expect but the price of gold is holding strong and anyone who holds it is fine in my book! :smuggrin: I think the reason it's not going upward is because the powers that be want it that way so the US dollar is pumped up artificially!
     
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  12. GoldFinger1969

    GoldFinger1969 Well-Known Member

    It's the market, not JP Morgan Chase.

    If Chase could forecast PM or financial market prices to the degree you think, the stock would be $1,000. :D
     
    Gam3rBlake likes this.
  13. GoldFinger1969

    GoldFinger1969 Well-Known Member

    If we were on a Gold Standard, the direct correlation you imply would hold.

    But we're not. :D
    But so many things impact the price of gold beyond inflation: supply and demand factors like Central Bank sales...institutional buying....Chinese and Indian buying....investor demand....etc.

    Gold is not going to track the inflation indices. You want TIPs or I-Bonds for that. :D
    Gold wasn't crashing, up $40 today. :D

    During periods of financial turbulence, very few financial assets go UP in price. Today, that was gold and U.S. Treasuries.
    I think I've discussed this before...but contrary to the YouTube and web clowns you may see, banks like JP Morgan Chase DO NOT own huge positions in PM's or gold or silver. It's not something they would be allowed to do by bank regulators. No bank regulator is going to let a bank have tens of billions in PM's/Gold/Silver and have capital levels impacted by PM prices.

    The positions you see are held by JP Morgan and other banks as CUSTODIAN not for their own accounts.
     
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  14. masterswimmer

    masterswimmer A Caretaker, can't take it with me

    GF1969, you know you can say it another 1000 times. You can hit them over the head with a 2x4, you can try hypnotism, whatever you say they're not going to believe you. If bank regulators were to permit reserves to be held as PM's the instability of the banking system would crumble in no time flat. The thought of JPM or any bank 'investing' in PM's is beyond absurd. The YouTube yahoo's just like to hear themselves talk. I can't believe even they believe what they're saying.
     
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  15. Gam3rBlake

    Gam3rBlake Well-Known Member

    I’m not saying that or asking about it because of YouTube Yahoos.

    I’ve seen legitimate news organizations report on it and I’ve seen reports of JP Morgan paying large sums because of it.

    89F2ABCC-8C0D-415E-B0BB-B24D657A9B34.png
     
  16. masterswimmer

    masterswimmer A Caretaker, can't take it with me

    Manipulating the PM markets for positions held as custodian for their clients is not in any way shape or form the same as manipulating the market for PM's in their own portfolio.
     
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  17. Gam3rBlake

    Gam3rBlake Well-Known Member

    Fair enough. I never accused though even my OP was just a question to learn. :)
     
    GoldFinger1969 likes this.
  18. Gam3rBlake

    Gam3rBlake Well-Known Member

    Sorry Hoop I did think about that but it was just a question about inflation and it’s relationship to PMs so I figured it was appropriate to post in the bullion thread where people stack & talk about PMs :(
     
    fretboard likes this.
  19. Clawcoins

    Clawcoins Damaging Coins Daily

    I've suddenly planned a trip this weekend to Kentucky with my Shovel Collection and Paddyman98 metal detectors .... ;) :wideyed: :woot: :wacky:
     
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  20. GoldFinger1969

    GoldFinger1969 Well-Known Member

    I know, MS. What they say is something that is true: "JP Morgan Chase has $120 billion in gold and silver as of May 2021....now, with prices 30% lower, they have less than half of that." Or something like that.

    But of course, JP Morgan and other banks did not HAVE that gold/PM....it was OWNED by other people and held in custody at the bank.

    Fidelity Investments has $4.5 trillion in assets. It doesn't BELONG to Fidelity.....it's the customer's accounts, including me and my family !!! :D
     
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  21. GoldFinger1969

    GoldFinger1969 Well-Known Member

    Understood....but even these headlines are deceptive.

    When EVERYBODY is doing it -- spoofing (false buy or sell orders) -- it's a "Game Of Chicken" to engage in price discovery. PM markets can be illiquid at times so you don't know what the market price is.

    Can I sell a few hundred ounces of gold today at $1,850 an ounce....or can I sell a few thousand ounces ? What about tens of thousands of ounces ?

    You see the same thing in other illiquid markets....muni bonds and corp bonds. It is ILLEGAL but it's not really manipulation. You're not driving the price higher or lower over time, just maybe at the open or intra-day.

    I knew one of the guys accused of this. He got fired, basically took a bullet for JP Morgan Chase. He wasn't hiding anything, and his superiors and the regulators and the government all knew for YEARS that this was going on.

    The CFTC should focus on firms that engage in fraud and go under or screw their clients like Refco. Commodities trading firm goes public...collapses a few months later. How does THAT happen ??

    Yeah, the CFTC has their priorities straight. :D
     
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