While I agree that we may well see a very short term pullback for gold and silver, I see the USD preparing for a major drop. The dollar index is currently completing a double top and has been unable to break above its credit crisis highs. Although if you're right and silver dropped to $10 or even $8, I'd be loading the boat like nobody's business.
Me too. I'm starting to slowly accumulate it. I'm not a gold bug, or even a metal bug, but all the talk about all the stimulus and socialist-making money being spent, and I see it as the 1970's all over again. Even money that is misallocated goes somewhere and gets spent. And when inflation kicks in, the traditional methods for slowing down the economy won't work because we'll have all those 5 year bridge projects going on and everyone and his brother will be locked into loans that don't float with the interest rates. So how can they stop it? Raise interest rates? It won't effect much of anyone. Cut the money supply? The won't be able to because it will be stagflation. I believe stagflation can occur when a product that everyone needs is artificially inflated by cartelling or government action, making everyone poor, but requiring them to drive prices up at the same time. 1970's all over again. SM
Well, it sounds like we may all agree, just with different timeframes. I'm holding my short with a 1-2 month horizon, but am longer-term bullish on both gold and silver.
WEEEEEEEEEEEEEEEEEEEEEEEEE !!!! the FED spoke and the global macros blinked -Silver futures for May delivery surged $1.515, or 13 percent, to $13.45 an ounce on the Comex. A close at that price would be the biggest gain for a most-active contract since Dec. 31, 1979.- go whale go !!!! www.youtube.com/watch?v=v0AWbA8yl7Y
Yeah, I guess the Fed committing to printing $1 trillion in new cash and shoving it into the system will do that, LOL!
I think you're right on. The banks won't lend to folks, businesses: massive amounts of money have been swallowed up in the debt markets. Hardly a formula for upcoming inflation. Plus, unemployment is increasing. Gold will go up, but not before it comes way down. $50 moves are normal for this stuff....and gold tends to swing up on expiration.
SLV crept up to $15.87 Investors are realizing that inflation is up but the Federal Reserve will be too slow on acting on it... I think that is the why metals are moving up now. On top of that the positive Alcoa news kept a relentless bid on the market. If SLV closes above $20 this year I'll regret not having 1 billion to have invested!
Don't feel bad last month I went to the local coin shop who also handles small sized bullion sales and is pretty close to spot on the buy side. One of the times I went in he was sold out some one came in and bought everything in inventory which I figure was about 10k+ ounces. This sucked for me because I was building my position slowly and he had none or little to sell. 3 days later sliver broke above $15.50USD. Currently I am looking to get out of silver and into platinum. Platinum just broke $1,3000/ounce and far away from it last highs around $2,000/ounce. As soon as silver crosses $17.00USD I am taking my profits. The FED could pull a rate hike soon and this will effect sliver/gold etc. Akuma
You gotta be careful with platinum. Its used in cars and car production looks like its going to be slowing down now.