PM's in a nose dive today

Nobody knows, although some think they do. What you have to ask yourself is how high you believe silver will rise. If you think $30 is the top, you are probably too late. If you think $70 is the top, then $2 doesn't matter much. Any strategy that requiries buying at the exact low is bound to fail.

 

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Just like they will usually not pay normal rates when buying and they believe prices are high and will come down. These actions are almost always overlooked by investors of physical PM, but can really cut yoru profits of investing in physical PM. Besides the normal dealer spread, its one of the bigger shortcomings of investing in physical PM.

 

That was so short lived, I don't think anybody would have adjusted their prices down in that amount of time anyway. It looked like it could be a major move down, and maybe it still is. I think prices will have to go down further and stay there before anybody gets too excited. As someone else said, it depends on what side of the sale the dealer is on for how they view their crystal ball. Prices tend to stick for a while even after drops.

 

Vess is absolutely right. And you have to take into consideration the peaks and valleys of the market. If we look back to earlier in the year when the prices topped out around $50/ounce and began this dropping trend throughout the year. There will be times the prices move up a couple dollars in a week's time just so it will drop $5 or more the next week. And the same will hold true when the pm market is on the steady climb. Honestly, I can't recall 10+ straight sessions where the price dropped. I'm a long term investor in silver, so the fact that most folks try and predict short term trends is rediculous for pm's. What is this, penny stocks??

 

Agree with the first quoted sentence. The market has been nuts this year with triple digit gains or losses happening with such frequency, it no longer seems noteworthy. On the other hand you have events like the Iranian bluster in the Straits of Hormuz that the market (including metals) simply ignores. Market fatigue I guess. As stated earlier, I agree that the fundamentals that drove the silver market higher in 2010 & 2011 are still in play with the situation in Europe deteriorating somewhat. I still see silver north of $40 in the next few years and believe buying in the mid $20's to be a bargain.

Regards,

Bluesboy65

 

If all this stimulus begins taking hold and the economy begins heating up, you could start seeing the FED drain liquidity and (dare I say!) raise interest rates. That would have a depressing effect on PMs. I have no idea if that will happen, but it would be a bearish scenario for PMs. There's certainly "political will" to make it happen.

 

I've thought for a while that a lot of small G&S buyers are "riding for a fall". At least, when still buying after the huge %-age gains of the last few years. Markets go up, markets go down. There is no asset class exempt from that, at least not yet in human history. There will be a time that G&S go into another long period of decline, or stagnation. I don't know when.

I'd just say, "assuming" that G&S "have to" always go up, seems dangerous to me.

 

This effect is actually variable. I have two local shops that deal in PM to the tune of posting real time web pages showing their buy/sell prices. These track right along, dip or spike. One of these shops back in the spring during the big drop of the year had a line of folks wrapped around the corner of their building (small though it is), all people buying silver. The shop did not flinch at the volume, claiming to still be sitting on many years worth of reserve in 'vaults'. I tend to believe them too. I guess they acquired most of it at well less than $10, probably even less than half that so they see profit at every turn these days. So it's just luck of the draw whether you have a shop around that is a real market maker. I'm thankful to have that just a ten minute drive down the road.

 

To the contrary, I see the government doing all it can to stall the recovery and take more liberty at every turn. Maybe that's just me. What's not me, is the simple repayment problem that higher interest rates would lead to should they decide to begin raising them. Paying interest on the debt at next to zero is one thing...all the while building trillions more on top of it...now, raise the rates - that's gonna hurt! Maybe so much so that it will begin the final dollar collapse. The great fiat dance is well under way and we know the outcome, just not the particulars of the thing itself.

 

No worries..edited as political opinion. Forum rules.

 

As far as I am concerned, as long as you have the cash and the local coin shop (or online bullion dealer) has the type of silver that you are looking for available for sale, then there is always the opportunity to buy silver. I am always buying but I am a silver art bar collector.

 

You don't have any worries. "Stimulus" is a euphemism for taxing the public and then handing over the proceeds to a select segment of society to do something, hopefully positive, with it. In essence it's taking wealth from one part of society and handing it to another. In other words it's government picking the winners and losers in an economy, but when has this ever worked? The Soviets learned this, and every single "stimulus" scheme that has been tossed out over the last 5 years has failed to do anything. Bush $100 checks, Cash for Klunkers, TARP, First Time Home Buyer giveaway, etc etc etc, only serve to protect the entrenched interests and political donors.

and solutions to fix the economy won't be coming from the government, or from that secret meeting room of old men who never held a real job in their lives otherwise known as the Federal Reserve Board of Governors. Creation of Boom/Busts. However, the Fed has blown its wad and has nothing left. There isn't much that can be done once they reduce interest to 0% except to deceive, obfuscate, change rules, and lie in hopes of kicking the can far enough down the road while waiting for a miracle. It will never come because there is nothing left now but bust.

Raising interests rates, significantly, is one of the things that should be done to fix the issue. They won't do this because it will destroy a number of TBTF institutions and force people to live within their means. No politician will support this because the current generation has been taught to believe that free credit is a "right".

So IMO, gold and silver continue to be very good long positions to take but only if you take physical control of it. MF Global should be a clear warning that when you let the banksters hold your stash, they will run off with it and the government doesn't care.

 

If you're not spending it, why do you need it?

WOW!! I just had an great idea!...until you need this extra money you have laying around, why not let the government use it to help folks that (through no fault of their own) don't have enough...you know, the folks that are helped by your charitable giving now (plus some you may not think deserve your help...but vote). When you really need something, the government will provide for your needs...assuming you're poor enough by then to qualify. hya:

 

^Luv, this, exactly. The Federal government isn't interested in solving problems. It only wants to create dependence.