Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
What Is Going On With Gold & Silver Spot Prices?
>
Reply to Thread
Message:
<p>[QUOTE="Rono, post: 4263575, member: 6492"]Howdy folks,</p><p><br /></p><p>Yeppers, the spread between paper gold and real gold is getting larger as I type. This is what is know as an artificially priced market and by this I too am not talking any sort of conspiracy, just the nature of the beast.</p><p><br /></p><p>As mentioned, a lot of folks had some of their assets in the paper version of precious metals such as the bullion ETFs like GLD and SLV, etc. Right now because the market is puking, many are getting margin calls and they must raise cash. Couple in the fact that there are a lot of 'liquid' assets - ETFs and mutual funds that are actually a bit illiquid right now. You see everyone has been looking for yield and a lot of money managers have put as many junk bonds (pay higher yield) as they legally can in their funds - many of which are U.S. shale/oil paper. They have a break even price of oil between $40 and $100 and right now it's in the 20's. Their debt is trash and that's one of the reasons why the Fed has been pumping cash into the system but it has also put more sales pressure on the POG. So, all this paper bullion has been sold and driven the price down. </p><p><br /></p><p>Er, the 'street' disagrees with the spot price which results in either a reduction in the supply or an increase in premiums or both. We're seeing both. </p><p><br /></p><p>It's the same thing as when the interest rates (price of money) get so low, the bankers decide they don't have any available money at that rate. 30 year fixed at 2.5%? Sorry, I don't have any money to lend. 5.5%? Well, maybe I can find some.</p><p><br /></p><p>Please note for the record, that as I type, physical silver bullion for sale is unavailable.</p><p><br /></p><p>peace and Flatten the Curve,</p><p><br /></p><p>rono[/QUOTE]</p><p><br /></p>
[QUOTE="Rono, post: 4263575, member: 6492"]Howdy folks, Yeppers, the spread between paper gold and real gold is getting larger as I type. This is what is know as an artificially priced market and by this I too am not talking any sort of conspiracy, just the nature of the beast. As mentioned, a lot of folks had some of their assets in the paper version of precious metals such as the bullion ETFs like GLD and SLV, etc. Right now because the market is puking, many are getting margin calls and they must raise cash. Couple in the fact that there are a lot of 'liquid' assets - ETFs and mutual funds that are actually a bit illiquid right now. You see everyone has been looking for yield and a lot of money managers have put as many junk bonds (pay higher yield) as they legally can in their funds - many of which are U.S. shale/oil paper. They have a break even price of oil between $40 and $100 and right now it's in the 20's. Their debt is trash and that's one of the reasons why the Fed has been pumping cash into the system but it has also put more sales pressure on the POG. So, all this paper bullion has been sold and driven the price down. Er, the 'street' disagrees with the spot price which results in either a reduction in the supply or an increase in premiums or both. We're seeing both. It's the same thing as when the interest rates (price of money) get so low, the bankers decide they don't have any available money at that rate. 30 year fixed at 2.5%? Sorry, I don't have any money to lend. 5.5%? Well, maybe I can find some. Please note for the record, that as I type, physical silver bullion for sale is unavailable. peace and Flatten the Curve, rono[/QUOTE]
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
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
What Is Going On With Gold & Silver Spot Prices?
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...