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<p>[QUOTE=&quot;InfleXion, post: 1616321, member: 29012&quot;]I guess I would want to know what the environment was when POS tanked 43% due to 1% reserve sale. Currently we have no silver reserves, but I digress. Were real interest rates positive or negative? Was the Hunt Bros runup fresh in peoples&#039; minds? How long had silver been demonetized for? Was price action driven by the metal itself or by contracts?</p><p><br /></p><p>I think the answers to the questions will likely weigh in more heavily than the act of selling reserves in and of itself, as the act can be interpreted differently in different monetary environments with different collective thoughts about what a metal&#039;s role is and different mechanisms for price action.</p><p><br /></p><p>Not to say that these precedents don&#039;t have merit and won&#039;t hold true, I honestly have no idea. I just prefer to know all the factors if possible.</p><p><br /></p><p>Gold bugs do have a couple friends though, namely China. We may not have any friends in Washington, but Washington should probably care what China thinks. And if the Fed is going to keep printing $85 billion each month to monetize the debt, that&#039;s bullish for gold too even though calling them a friend might be a stretch <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie2" alt=";)" unselectable="on" unselectable="on" /> Of course China might be perfectly happy to buy more at lower prices, and gold contracts could very well crush the price if margins were raised sufficiently. It can certainly happen, but since I don&#039;t plan on selling in the near term if ever it doesn&#039;t really bother me one way or the other. I&#039;m waiting for metals to be considered money again as a standard or else positive real interest rates before I&#039;ll think about any strategy except accumulating.[/QUOTE]</p><p><br /></p>

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