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<p>[QUOTE="ToughCOINS, post: 2122098, member: 20480"]Investors tend to drive the demand for commodities even more than consumers, but artificially so. This is because that demand is speculative, and not consumption-based. Further, it is because speculation is more often leveraged by investors than by consumers (think commodities contracts).</p><p><br /></p><p>Market swings generally are started by changes or forecast changes in consumer demand for the commodity, while those swings are accentuated or amplified by investor speculation, whether stepping into, or out of the market, creating excess volatility.</p><p><br /></p><p>Since you appear to be trying to make money in metals without actually consuming them in a productive effort, your prospects for profit are ultimately dependent upon changes in fundamental demand, although upon investor sentiment as well.</p><p><br /></p><p>Unfortunately, rather than researching the historical supplies and rates of consumption in the marketplace, you appear content to try and base your investments upon rather broad assumptions. If you want to get really good at this, you need very good data.</p><p><br /></p><p>That is a very specialized area, I do not claim to know any more than you about that specialty, and I do not have the energy or inclination to get that deep into it, however I do know that it is necessary to reliably achieve the level of success you seem to desire. The reason the levels in the bullion market often contradict the fundamentals is because there are so many players who speculate, placing artificial demand on the supply without actually affecting the fundamentals.</p><p><br /></p><p>What did Dirty Harry say? . . . "A man's got to know his limitations."</p><p><br /></p><p>If you don't have the ability, energy and inclination to achieve the necessary level of certainty through good research, you should not expect the results such research would deliver. That is the very reason so many are losers in the precious metals markets. In fact, that is the very same reason so many are losers in the real estate, equities and other investment markets.</p><p><br /></p><p>I'm not trying to discourage you from making money in this market, but to let you know that, if you want to be sure you'll be making money, you need a deeper level of knowledge of the market than you appear to have.[/QUOTE]</p><p><br /></p>
[QUOTE="ToughCOINS, post: 2122098, member: 20480"]Investors tend to drive the demand for commodities even more than consumers, but artificially so. This is because that demand is speculative, and not consumption-based. Further, it is because speculation is more often leveraged by investors than by consumers (think commodities contracts). Market swings generally are started by changes or forecast changes in consumer demand for the commodity, while those swings are accentuated or amplified by investor speculation, whether stepping into, or out of the market, creating excess volatility. Since you appear to be trying to make money in metals without actually consuming them in a productive effort, your prospects for profit are ultimately dependent upon changes in fundamental demand, although upon investor sentiment as well. Unfortunately, rather than researching the historical supplies and rates of consumption in the marketplace, you appear content to try and base your investments upon rather broad assumptions. If you want to get really good at this, you need very good data. That is a very specialized area, I do not claim to know any more than you about that specialty, and I do not have the energy or inclination to get that deep into it, however I do know that it is necessary to reliably achieve the level of success you seem to desire. The reason the levels in the bullion market often contradict the fundamentals is because there are so many players who speculate, placing artificial demand on the supply without actually affecting the fundamentals. What did Dirty Harry say? . . . "A man's got to know his limitations." If you don't have the ability, energy and inclination to achieve the necessary level of certainty through good research, you should not expect the results such research would deliver. That is the very reason so many are losers in the precious metals markets. In fact, that is the very same reason so many are losers in the real estate, equities and other investment markets. I'm not trying to discourage you from making money in this market, but to let you know that, if you want to be sure you'll be making money, you need a deeper level of knowledge of the market than you appear to have.[/QUOTE]
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