Message:

<p>[QUOTE=&quot;InfleXion, post: 1248578, member: 29012&quot;]In my mind the answer to this question relies heavily on the reasons for why they drop. If it is because of margin hikes or a slowing economy I would see it as a temporary dip and buying opportunity. I would tentatively look at the Fibonacci numbers to try and identify the bear trap. I was just doing some number crunching last night on the substantial drop in silver in May, and it bounced precisely off the 38.2% Fibonacci retracement down from the $50 high, then hit resistance at the 38.2% Fibonacci retracement up from the previous $27 low, bounced around those lines for a while and has now broken above both of them which is bullish. The 61.8% number from $27 is around $43.50 so if we break that I would expect full steam ahead, otherwise I would want to see it break down through both of the other Fibonacci numbers I mentioned below $36 before I would be bearish.&nbsp; </p><p><br /></p><p>However, if the reason prices drop is due to fiscal responsibility (although paying off all the debt would cause a deflation and probably still cause PM&#039;s to rise in purchase power even if the actual price drops) or due to some sort of monetized metal standard then I would look at it more as a top than a dip, but even then such a scenario would provide stability and I doubt the price would move much anyway after metals are pegged to the dollar.&nbsp; </p><p><br /></p><p>As such I have a very hard time seeing VALUE going anywhere but up considering the ongoing bank runs in Europe, and the massive debt we have in the US which must grow at it&#039;s current pace to prevent a deflationary scenario. Even if we do see a deflation (which is seeming more likely to be inevitable to me unless the Fed is willing to hyperinflate to infinity which isn&#039;t really sustainable) precious metals will lose their value at a slower rate than other commodities, thus increasing buying power as price drops. So I don&#039;t really see how you can go wrong with PM&#039;s.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in