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<p>[QUOTE=&quot;WingedLiberty, post: 1687326, member: 26030&quot;]i heard some stuff on CNBC about it. These were just theories</p><p><br /></p><p>1. There is a whiff of deflation in the air.&nbsp; Strange that is going on with all the money printing though.&nbsp; A lot of commodoties are dropping (oil, some grains, copper, etc) </p><p><br /></p><p>2. A lot of hedge funds owned gold as disaster insurance, and there seems to be less fear about the worst happening, so some funds are selling their insurance</p><p><br /></p><p>3. Gold and Silver did not rally this year (like stocks did). so Hedge funds are dumping their gold and silver and buying stocks with the money.&nbsp; Sort of like money seeking out what is hot</p><p><br /></p><p>4. The cyprus bailout wasnt big enough so there were rumors that Cyprus had to sell their gold to make up for the short fall.&nbsp; However later I heard it&#039;s not allowed for countries in the EU to do that (for some reason)</p><p><br /></p><p>5.&nbsp; Selling begets more selling.&nbsp; As the price falls more people panic and sell.&nbsp; This happened in the financial crisis of late 2008 and early 2009.&nbsp; When almost all assets were dropping like rocks (I think Gold went from $1000 an ounce in early 2008 down to $600 an ounce in early 2009 -- Silver as I recall dropped to $9 an ounce in 2009.&nbsp;&nbsp; </p><p><br /></p><p>6. This winter and early Spring ... Silver and gold could not rally though their old highs set in 2011, even though there were lots of reasons for them to rally.&nbsp; Sometimes this shows that an asset class is tired and due for a fall. </p><p><br /></p><p>7 Goldman Sachs downgraded Gold earlier this week, perhaps that caused some people to start selling</p><p><br /></p><p>8 Gold and silver had a 10 to 11 year run of upward trending prices ... in 2001 silver was $4 an ounce and gold was $250 an ounce (I think) ... No asset class just goes up forever.&nbsp;&nbsp; So after 11 years, perhaps silver and gold are due for a multiyear rest with flat or falling prices.&nbsp; &nbsp; Interestingly Stocks were basically flat from the peak in early 2000 to early 2013.&nbsp; So the stock market went nowhere for 13 years (while silver and gold was rising 700%).&nbsp; &nbsp; So it could be time for stocks to become the asset of choice for the next 12 years???&nbsp;&nbsp; (Remember Gold and Silver went nowhere from 1981 to 2001 (almost 20 years of flat prices).&nbsp;&nbsp; Most asset classes go through these sort of up down and flat cycles.[/QUOTE]</p><p><br /></p>

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