Did I miss some bit of news? Not finding a fundamental reason for today's PM dip. Seems we hit resistance at 17/1200, then back to rangebound stagnation. Interested in other's opinions on this. Been trying to learn this market for about a year or two now, harder to figure than stocks.. should be easier.
I suppose this will start a firestorm of controversy, but anyone who believes that PM pricing is honest, transparent, and not manipulated DAILY by COMEX data, J. P. Morgan, the C.O.T. data, reports of Indian and Chinese acquistions, etc., etc., etc., is very naive, and due for a shock one of these days. Start reading www.24hgold.com every day, where 30 to 40 experts discuss news, trends, and data. On May 1, post (on this subject) again, and tell us if you have a different outlook. One of today's blogs is a good start: http://tinyurl.com/pby9z9d Another eye-opening source is www.milesfranklin.com where you can sign up for a free daily commentary. Also keep in mind that rising PM prices signal a failure in (U.S.) monetary policy, and thus, there's a vested Federal interest in keeping them in check.
I totally get that there's market manipulation, and price-fixing. There's been a lot written on that recently. Though, I also see rational moves based on macro events. Trying really hard to understand this market more. The more I study, the more it seems to be a very poor investment for anything other than a safe haven as a small part of a diversified portfolio. Unfortunately, I keep buying on the dips, only to see it continue ever downward and never finding the right time to lighten the position. As far as trading or speculating, it seems that playing craps would be more fruitful and fun. Thanks for the add'l resource links!
How the heck do you get that rubbish in your head? So NOTHING in the world affect pm prices other than US monetary policy? Not jewelry demand in the far east, not mine opening or closures, not price of oil, NOTHING except the US? Good gosh, this is so shockingly naïve and jingoistic as to not really merit any other retort. OP, its a complex market with all of the things listed above, coupled with irrational beliefs that somehow pm matters at all to economic policy anymore. PM is a commodity, and most closely tracks other commodities. Gold is a metal frequently mined for by its own, and its demand is more emotional than other commodities. However, it usually has less volatility. Silver is much more complex, have some emotional investing, along with major industrial uses. Also complicating silver is its mainly a byproduct metal, meaning if tin or copper continue to be mined silver will be mined regardless of the mine owners wishes. All of this leads to much higher volatility for silver versus gold. Hope that helps a little.
Bingo. Its a PART of a diversified portfolio. As for the "manipulation" stuff, most of that "information" you will find is truly garbage if you educate yourself on how commodity markets and trading works in the real world.
It really doesn't matter if "they" are manipulating the price. They keep driving the price down to keep it affordable for me.
Gold is currency not commodity, even the former head of the federal reserve Alan Greenspan said this.
Why don't you post the entirety of this quote like someone did in the other thread? The entirety changes this quote, though you already know that, don't you.....
This looks like the entire quote: "Gold, unlike all other commodities, is a currency...and the major thrust in the demand for gold is not for jewelry. It’s not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating." -– Alan Greenspan, ex-US Federal Reserve Chairman, August 23, 2011 =========== When I buy PMs, I am escaping from a fiat money system, which is my prerogative. In 1913, the year the Federal Reserve was created, a paper dollar was worth a dollar; a century later, BLS and Treasury estimate it's worth 5c to 7c of that 1913 dollar, plus some (unknown) allowance for technological advancement in like goods. I would add the observation that China and Russia have bought enormous amounts of gold bullion in recent years, and lightening up on dollar-denominated assets in the process; they must not have read your post.
Gold and silver are used as an inflation hedge investment but when used as such usually is not intended as a permanent position.
Does arguing get your rocks off? Why post so much in the BULLION INVESTING forum if you want to constantly badmouth investing in BULLION, the very thing the forum is for.
Actually he seems to help balance the forum, and as he has said , he has bullion. Hopefully , even a positive side member would not say there can be no down side, and 100% safe for investing entirely.
There was a time, believe it or not, when EVERY gold coin was numismatic. I bought my first gold, a $5 Liberty, at our coin club auction in 1961. The Krugerrand (first bullion coin) came along six years later, effectively starting the gold hedge.
10%-20% as my other investment values go up or down. I try and keep my hedge fund at a level equal to 6-12 months of living expense. I figure if a world calamity happens, it would take about that long for another stable fiat currency to appear again. It could even be our own if it can bounce back.
Does this (Federal Reserve) chart look sustainable to anybody??? The idea is more comprehensible if you leave out the murky term "hedge" and simply say that you're trying to preserve the purchasing power of your liquid assets. Today, a silver dime buys a loaf of bread. Hyperinflation comes, and hopefully a silver dime STILL buys a loaf of bread. Most of the quibblers here have far too short a time frame. And gold's OK, but silver's better, because it's readily available in very small units suitable for everyday commerce. That is YOUR money, CT Members, SPIKING on the chart...
saltysam-1, you will be a Survivor in this mess. I'm around 10-20% too, but would rather be at 50%. My other primary investment, my stamp collection and dealer inventory, are more illiquid than coins, and MUCH more illiquid than bullion. I'm selling off excess material the best I can. All my coins fit in one 10x10 safety deposit box; I estimate the stamps take up the equivalent of a dozen file cabinets, 60+ years' worth.
I think we both have balanced and weighed our options correctly. I'm not sure of your age doug5353, but I'll venture a guess we are not that far apart there either. It seems to me the one's who have it the roughest are the youngest. Life hasn't given them time enough to deal properly with all the safe guards necessary in this kind of situation. I'm glad to see them addressing it however. Unfortunately, unless they come from a family of unusual means, their future security for themselves and their families needs time to develop. Yet they still need to provide these things for their present lives as well.
