Is anybody still buying silver and gold?

Discussion in 'Bullion Investing' started by ahearn, Jul 27, 2011.

  1. claygump

    claygump New Member

    Me 2. Was planning on stopping into a coinshop last Wednesday anyway and with the plummet in the price I thought it was a good time to get off the sidelines. Bought a krugerrand, a buffalo, and because I've wanted it for a long the the First in Flight 10 Gold UNC. Time will tell if I'm an idiot or genius. I'm not really a bullion "stacker" but the large drop in prices this past week made me pull the trigger.
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  3. Owle

    Owle Junior Member

    And Paul Krugman and the like have been berating Ron Paul recently on his prediction of raging inflation which has not occurred. So even relatively sensible and conservative forecasters can get it wrong. The biggest bullion dealer at the New Haven show today is calling for a surge in gold after Martin Luther King day into March next year.
  4. jjack

    jjack Captain Obvious

    Just a bought platinum ring with a gold insert coin will post pictures when i get it. It is shame it is quite hard to find good NCLT platinum coins at small premium over spot.
  5. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    You will have to ask her. I take no responsibility for predictions. This is where I think people misunderstand the use of technical analysis. It doesn't predict the future, but it can give you an idea about what to do today -- whether the path of least resistance is up or down or unknown. This was Jesse Livermore's approach to the market and I think it's the right way to think about it if you intend to use technical analysis.
  6. InfleXion

    InfleXion Wealth Preserver

    Technically the money supply has tripled since the DOW was at 6800 in 2008, so dumping your stock wasn't necessarily a 'burn' unless you kept it in dollars. Otherwise you still lost 1/3 of your wealth with the increase.
  7. InfleXion

    InfleXion Wealth Preserver

    Inflation, which by definition is the expansion of the money supply has most definitely occurred. It's just that commodity prices have not caught up to it yet, but that is an effect of inflation, not inflation itself. If we are talking measured percentages of price increase, which is often incorrectly called inflation, then it's correct to say it has not kept up pace with monetary expansion, but it has definitely increased.
  8. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    That's pretty hypothetical because it assumes that the triple in the money supply equated to a triple in the general price level for goods and services, which clearly did not happen. Most people would be pretty happen with a 77% increase in net worth in less than 4 years, and rightly so. Prices are not 77% higher now than in 2008.
  9. Owle

    Owle Junior Member

    This from Larry Edelstein of Weiss Research recently:

    "Gold has plunged through many of the support levels I've previously provided you. It's dropped through the $1,730 level ... the $1,610 level ... and has thus far reached as low as $1,564.
    Once it closes below $1,610 on a Friday, which it will likely have done before you even read this column — the stage will be set for gold to collapse to at least $1,435 and, very possibly, as low as the $1,100 mark.
    And silver, precisely as I've been warning you, has started to crash again — losing more than $4 last week and shattering support at the $30 level ... then the $29.16 level — and is now ready to make a beeline down to $25 and, very possibly, much lower to $22 to $23 an ounce. "

    I question the man's bias and got this response from the insider expert who sent me the info:

    He has usually been mostly accurate, not only with price, but with timing too.
    I don't discount him. He feels that the eurozone mess is making the US dollar stronger...even with the US Treasury and Ben's Fed trying to push it down, a stronger dollar in his reasoning means commodities in terms of the US dollar a less expensive. Eventually, the eurozone mess crisis and chaos will end probably ugly, then it will be the US turn and gold will soar and the dollar demise with a new replacement currency. That is his overall position. Long term no limit on the price of gold.

    Why I think he is good for coin dealers...he lets you know in a timing range how to trade because he tells you what to expect. Sure, he can be far OK
  10. InfleXion

    InfleXion Wealth Preserver

    I agree this has not happened, as I mentioned in my other post. However, that is because it is being hoarded by banks because they still have more outstanding debt than capital to play with. Once it hits the mainstream money supply then we will see the effects of this inflation. The function of money is to exchange goods and services. It's a simple rule that increasing the money supply increases the amount of money that each good and service is represented by. I don't view it as hypothetical just because it hasn't reached fruition, but I will concede that since this money hasn't yet hit the market that the inflationary pressures have not amounted to as much of a loss as I previously stated at this time.
  11. medoraman

    medoraman Supporter! Supporter

    No sir I disagree. Inflation is NOT an increase in the money supply. Inflation is the increase in XXX, (dollars, gold, silver, money), that it takes to buy good Y. The money supply can increase indefinitely and not drive inflation, if the quantity in the basket of goods purchased goes up proportionately. If the basket of goods is fixed, THEN increasing the money supply will drive inflation.

    Its a misconception that drives wrong behavior. You are correct if you are assuming consumption is static, (not increasing), to say increased money supply=inflation. If you are assuming that, though, you must always state this otherwise your statement on its face is false.

  12. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    Well, if the banks have more debt than capital, the newly created money will never be released into the general economy. It is just a replacement of the bank reserves lost in the prior downturn and will never be available to lend.
  13. fatima

    fatima Junior Member

    Well.... His prediction was wrong. Gold closed lower than his trigger last Friday yet instead of collapsing to $1435 or even $1100, it's on the rise again. Without giving a rationale for his predictions he is just another dog yapping at the moon.

    "He feels that the eurozone mess is making the US dollar stronger...even with the US Treasury and Ben's Fed trying to push it down, a stronger dollar in his reasoning means commodities in terms of the US dollar a less expensive."

    So my question is this. If people are so willing to believe that the Fed is manipulating the $ to make it stronger or weaker why do they reject the simple premise the Fed manipulates the price of gold & silver? Answer: They see what they want to see. Gold got pushed down in December because the central bank lease rate for gold were changed to negative on two separate occurrences. It's a gold delivery month.
  14. InfleXion

    InfleXion Wealth Preserver

    Consumption may not be static, but it is independent of the money supply. Increasing the money supply does not put more metals on the market, or food on the table. According to you are correct that inflation is relative to price, not money supply. However, in my mind, and I may be wrong, that's like saying putting air in a balloon isn't inflating it because the words on it didn't stretch as much as you thought they would.
  15. JCB1983

    JCB1983 Learning

    I am going to give you a hypothetical situation. Say for instance Iran and other middle-eastern countries decide to implement entitlement programs. They come to the conclusion that the best way to fund these entitlements would be to raise the price of oil. Meanwhile the price for gasoline rises to $5.00 per gallon. A few months down the road the amount of money in circulation is getting less and less. Billions and Billions of dollars are now sitting in middle-eastern bank accounts. We start to see the negative effects in America. Spending begins to decrease. The government reacts by pouring 1 trillion dollars directly into U.S. Banks through quantitative easing. Is this inflation? Does this lead to inflation? Should we agree with Milton Friedman that it is a monetary policy? Should we conclude that it is a reflection or change in pricing? Or is it simply the way in which capital flows to hard assets such as gold? I am confused. I have always assumed that inflation was a monetary issue.

  16. fatima

    fatima Junior Member

    The only way that Iran or any other individual oil producing country can raise the price of oil is to stop selling it. It defeats the purpose since oil might go up, but the country that made the move is selling less. OPEC was successful for many years because it was a cartel of countries that set prices, but since new sources have come on-line, namely Russia, the cartel doesn't have that much influence now. There are no shortages of oil so it's and even tougher thing to do.


    Inflation = increase in the circulating money supply, absolutely. Inflation /= price increases related to demand or shortages. People often get this wrong.
  17. Mr. Flute

    Mr. Flute Well-Known Member

    I'm certainly still buying, and my local shop even has low grade proof quarters in their "junk" bins. So that's interesting.
  18. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    I agree that no single country can unilaterally decide to raise the price. Adding to the discussion on shortages, the only reason there is no shortage is that the price rose from the $20s to the $90s over the past few years to kill off much of the demand that would have occurred at lower prices. So as long as the price is free to adjust, there will never be a shortage, but there may be many folks who can't afford it.
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