Bullion vs. Oil

I know that this whole subject has been discussed to death, and that there are way too many factors influencing the price of bullion to blame just one, but HOLY COW!

This week has got to be the lowest I've seen bullion prices since the 4th quarter of last year. Platinum down to $1540 an ounce?! Yikes! Guess the US Mint won't be selling any of their new platinum eagles any time soon...

Lowering oil prices clearly has had an effect... what else has been going on in the world that could account for such a drop?

 

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has the US dollar strengthend at all. I know the strength of the dollar can easily look like the prices are adjusting.. at least from our standpoint.

If platinum prices have dropped here, but not over seas, then the dollar could be a factor. If the prices have dropped all over ... then maybe not.

 

The dollar rising. When the dollar buys more, commodities drop.
Guy~

 

The credit crisis has many investment firms searching for liquidity. There is no way to know for sure, but it seems likely that the price moves are caused by the liquidation of positions in the futures market, and not because of the selling of phyiscal gold. When the selling stops, the price will move back up. If you want to buy bullion coins, the next couple of weeks might be a good time to do it.

This is only opinion and doesn't come with any guarantee.

 

I have developed a perfect system for predicting the price of gold. When I buy, it will drop quickly, and when I sell, it will start moving north.

Works every time

 

When are you sellin' Jack?

 

I think Jack's system is the way it works for me as well. Honestly, I don't even bother looking to see what metals are trading at anymore. If I like it I buy it.
Guy~

 

Same thing with me Guy. My system (totaly non-existant) doesn't work either.

 

It's just nothing more than supply and demand. Why make things so complicated? If miners strike, this will reduce supply and hence prices will go higher. If people have too much money to waste on, this will increase demand. If oil prices go up, supply has to go down. A good read on kitco.com will give you a better idea.

 

Read it all the time GX......still poor.

 

Hi, i'm certainly not a metals expert or even close. But from what i have read, the summer months are usually very weak periods for gold(which probably drives other precious metals South also). As far as Platinum is concerned, the slumping outlook for auto sales has hurt Platinum prices(Platinum is used in cat. converters). As people drop out of the metal markets it could be a good buying chance for gold & silver. Bullion priced Silver may prove a good investment, since Silver is used in many manufacturing processes. With most commodities slumping, it more than likely is just a lull before heading higher in the future. With increasing population, a roaring China growth economy there should be good sledding for commodities in the future. Just my unexpert opinions! Don't forget that only 5 years ago gold was under $400.00 an ounce, with Silver around $4.00 an ounce. So there is a huge downside!

 

I've sure been watching bullion prices drop a lot faster than oil - at least at the pump.

It's a crapshoot as always. Silver, gold and platinum all took a serious nosedive.

So really what does one do? I converted old silver into gold when gold was $600. Not like I have a ton but the ratio was right.

Now I'm considering converting a few ounces of gold into silver because the ratio is right.

Man! Where did I put my Crystal ball?

 

Dan
I bought another gold coin today, it will drop, lol.

 

Way to go Jack. Now I REALLY know who to blame!

So if you buy gas will it drop? Keep me posted on that one for sure!

 

As a matter of fact Dan, you know my truck well, lol. $115 last full up and gas dropped $.25 by the time I filled up again. LMAO

Edit: I can go 3 weeks between tanks if just work and back

 

Don't forget political unrest. The Iranian nuclear issue has yet to be resolved and may well go violent. Russia attacking Georgia adds more instability, so I am hanging onto my metals for now. Hedging against war is the only time that I hope I lose a lot of money.

 

That's a very good plan. Even if it doesn't work, it's a good plan. :thumb:

 

What are you guys gonna do if silver hit $4.00 ounce again? LOL! Happy, sad, or skipping meals to buy all of it you can? I don't think it will happen but man, what a heck of a dive lately. Still good news in a way.

I know there are at least several hundred people on ebay who purchased 100 oz bars for over 2 grand that are probably wishing they would have waited a couple months now.

 

what gold have today? something like a $35 drop!!

 

Yep, my wife bought a Rooster Saturday, gold has dropped $40 since, lol.