why is gold and silver going down right now?

thank you, I was thinking the same thing and wanted to know what others thought.

 

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The US debt has now surpassed its GDP. Socialized medical care has not kicked yet. There may be a few upward ticks, but we have record numbers of people on food stamps and record numbers of home foreclosures. The inflation we are all beginning to feel is just getting warmed up. Our nation has incurred a staggering level of debt and you should not expect good times as aresult.

 

http://www.youtube.com/watch?v=zwcbmbOZ8xo&feature=email&email=comment_reply_received

here is an interesting video on how the paper money supply is shrinking but the debt is increasing, video was posted today.

seem like we're going towards a digital money system... and this is bad for all of us.

 

edited - bad taste

 

half the big money thinks are getting better here and equities will do better than PMs. a lot of others see a worldwide downturn on the way (my view) and there will be less money to flow to PMs. wait it out 'till june-july, things will turn the other way, more QE here and Europe and PMs will take off.

 

the only reason the rich think its getting better is because the government printing more money, and that means there is more devalued money to go around.

 

Silver goes down and you guys start popping pills and smoking on the hopium bong again. You absolutely can't apply any reason to prices when the laws that regulate the finance industry that controls where money is going in this economy are flagrantly being ignored and broken, and there is no accountability.

I've seen it said here many times "I wish PMs would just go down again so I could buy more......." Yet when it does, it's all gloom & doom and everyone is looking at chicken entrails for a sign of what to do. You need a long term plan that is based on research, then stick to it. PM bullion buying is definitely a long term investment activity. Short term changes in price, either up or down, should be ignored lest you get burnt badly by emotional decisions.

 

The price of precious metals will always fluctuate based on countless variables. Predicting where it will go is a crapshoot. But an ounce of gold will always be worth an ounce of gold (historically about the value of a fine man's suit) The only thing that goes in a straight line up, it seems, is Apple stock.

 

Because of rising gas prices, which always directly affects the cost of food that is transported from far away locations.

I actually try to buy most of my groceries from local vendors and farmers, going to farmers market and even growing a majority of my own vegetables and herbs. Rising costs at the grocery store never really directly affects me because I buy quality food regardless, not just cheap food.

 

" . . . But when the dollar has no value the world will go back to trading in gold and silver... ?

There are alternatives to PM for trade. Already some countries are planning to use the B​

razilian Real.

I'd like to hear what desertgem and cloudsweeper have to say PM prices.

 

In answer to one of the above questions, yes, it may be the drop is at least in part due to the election year: http://emasfairuz.com/silver-down-91-in-presidential-election-years-since-1917/

ETA, in case that link dies... http://www.minyanville.com/business...ce-of-silver/1/23/2012/id/38964#ixzz1pZIZumEk

 

But even Brazil is not wanting to use the Real. They are intentionally trying to devalue it since its strength, (tied mainly to the high insterest rates the banks there pay), is severely hurting the Brazilian economy. I see even further weakness in the months ahead for the Real.

I agree the US dollar may someday lose its international status, and we will be affected, just commenting on the Real specifically.

 

the canadian dollar is the most stable currency( in my mind)

 

it is going down so it can go up

investment in either is still a safe bet for the long run(10years) and always beats inflation

 

"And I'm not telling."

 

Agreed. The economy is not better in any place. Not my neck of the woods (next to the Pacific ocean) or yours way far from me. There are occasional pockets of communities (like Key West) that were not hit as hard as most in the recessions, but people are struggling everywhere in the U.S.

 

The 1970's says hi!

 

Some people just don't want the economy to improve right now. Regardless of personal experience, overall there is improvement. Unemployment is never 0%, even in the best economic boom of all times. Someone always loses their job, someone is always looking. Things are improving, some companies are hiring more now than they were and business is picking up, overall. It's a weaker recovery path so far, but it was a tremendous recession difficult to compare against others.

Gold and silver are commodities that are traded against prevailing sentiment and world conditions. There are lots of reasons they could be going up or down at any point in time.

 

I've noticed the same thing lately. I guess they don't equate fluctuations in bullion to fluctuations in the rest of the economy, but rather think it's on a tangent of it's own because they hold a small pile and so hope it just rises every day. One doesn't have to look back too far, less than ten years in fact, to see that in good economic times bullion is always way down in price. Thats not a bad thing. That means we have jobs and growth. People have starnge priorities when it comes to those who invest poorly.
Guy

 

People need patience when investing in PMs. Did you ever talk to a day trader on Wall Street? Constantly under high amounts of stress, two bad days from losing everything, and always afraid the sky is falling.
I'm not saying you need to hold on to your silver for twenty plus years, but be patient. Just like when you're on a diet, weighing yourself every day only sets yourself up for disappointment.