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theo
Penny Hoarding Member
USA
588 Posts |
 Posted - 05/06/2010 : 11:25:21
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As I write this gold is up over twenty dollars and challenging the 1200 level while silver has yet recover from its brutal sell off earlier in the week languishing in the 17.50s.
The experts don't seem to have a lot to say about it apart from maintaining their predictions of 20.00 silver in a few months. I'm still bullish on silver and tend view this sell off as a buying opportunity; however when an asset that I hold loses 10% of its value in two days, I'd like to know why. Of course two main possibilities are:
Scenario 1: JPM and friends used their massive short positions to send the silver price spiraling downward. . . again!. Although it is very possible that this is true, its frustrating to continually read these accusations and not have any real confirmation or resolution.
Scenario 2: Silver's widespread (and growing) indusrial use is making it vulnerable to market downswings. Gold may be weathering the storm more effectively (at least in the short term) as it is seen as the ultimate form of money.
Any thoughts?
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Edited by - theo on 05/06/2010 11:32:27 |
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thedrifter
Penny Sorter Member
USA
96 Posts |
Posted - 05/06/2010 : 11:53:12
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| Industrial metals are also having a tough time right now, so your scenario 2 might be a plausible partial answer. |
The Drifter |
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Country
1000+ Penny Miser Member
USA
3121 Posts |
Posted - 05/06/2010 : 11:54:09
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JPM and company can not control the GOLD price when they are in competition with the sovereign buyers such as China and India and others. SILVER is a much smaller market that can be manipulated. Long term, SILVER will catch up, but is subject to vicious market manipulation at times. $1200 GOLD - and beyond - here we go!!  |
---> Come to the new and improved realcent: http://realcent.org
The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
– Theodore Roosevelt
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Edited by - Country on 05/06/2010 12:23:04 |
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battlecat
Penny Pincher Member
152 Posts |
Posted - 05/06/2010 : 11:56:20
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| From what I can recall at least over the last five years we have had drops like this around the same time every year. I would have to look up a chart to see if this is true. But then we get an upswing near Oct. |
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beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
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NiBullionCu
Penny Pincher Member
USA
168 Posts |
Posted - 05/06/2010 : 13:23:42
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I vote scenario #2
Gold is the true hedge, silver is the "poor man's" hedge.
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Country
1000+ Penny Miser Member
USA
3121 Posts |
Posted - 05/06/2010 : 14:23:09
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| GOLD hits $1209 when the US stock market is down almost 1000 points. Is the currency crisis here? |
---> Come to the new and improved realcent: http://realcent.org
The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
– Theodore Roosevelt
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Market Harmony
1000+ Penny Miser Member
USA
1274 Posts |
Posted - 05/06/2010 : 14:23:19
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gold is a store of wealth.
silver is still very much an industrial metal.
When there is fear like there is today, then people will flood into gold and sell everything else that is tied to the economy. |
goto the new and improved realcent: http://realcent.org |
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PennySaved
1000+ Penny Miser Member
USA
1720 Posts |
Posted - 05/06/2010 : 14:24:35
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| I think it is great that silver is trending downard and gold is going up. I think it is a great buying opportunity because we all know that silver/gold ratio will ultimately correct. |
SELLING COPPER PENNIES 1.4X FACE SHIPPED......“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principles of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale” Thomas Jefferson |
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wheeler_dealer
Penny Collector Member
USA
402 Posts |
Posted - 05/06/2010 : 22:08:48
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Buy the dips. Think Long.
If you had $10,000 dollars to put in a chest for your kids inheritance down the road which do you think would be worth more in ten years? twenty years? Can you afford to wait? Would you rather open the chest in ten years and find CASH or SILVER COINS?
Paper is someone elses liability and people in the EU realize that. I wouldn't be surprised to see Gold gain another $40-50 dollars or more by next week as people flee the stock market and paper money. |
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IdahoCopper
Penny Pincher Member
125 Posts |
Posted - 05/07/2010 : 08:34:50
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Did you notice that silver spiked up pretty good just prior to the end of April? It went for $17.50 to over $18.60 from Apr 20, to the end of the month.
That had to be from buying pressure to deliver physical as futures contracts expired, and folks demanded physical silver.
Once May began, JPM was able to resume its daily manipulation game.
This is a strong sign that more and more people in the futures market are going to demand physical settlements. Watch for silver to spike significantly at the end of every month, and drop again during the first week of each new month.
Finaly, Hoard will be able to buy and not crash the price! Its all in the timing. |
See - http://IdahoCopper.com
and:
http://beefjerky.com |
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HoardCopperByTheTon
Administrator
USA
6807 Posts |
Posted - 05/07/2010 : 09:55:08
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quote:
Originally posted by IdahoCopper
Finaly, Hoard will be able to buy and not crash the price! Its all in the timing.
Whoohoo! Finally.  |
If your percentages are low.. just sort more. If your percentages are high.. just sort more.
Now selling Copper pennies. 1.6x plus shipping. Limited amounts available. |
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PennySaved
1000+ Penny Miser Member
USA
1720 Posts |
Posted - 05/07/2010 : 13:23:59
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Did you see the spike in silver today?
up almost $0.69 (4%) while gold was only up $0.70 (0.06%)
Seems like the tables were turned today |
SELLING COPPER PENNIES 1.4X FACE SHIPPED......“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principles of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale” Thomas Jefferson |
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wolvesdad
1000+ Penny Miser Member
USA
2164 Posts |
Posted - 05/07/2010 : 15:18:11
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| gold is usually first to move up, if I recall past experience. |
"May your percentages ever increase!" |
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Shattered
Penny Hoarding Member
USA
523 Posts |
Posted - 05/07/2010 : 16:55:10
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I have a question that is somewhat on topic. I have only been in the game for a short time so I don't have much experience.
Just a few months ago silver was going for $15.00 and now I saw it up past $18.50. Is it likely for it to go back down to those levels anytime soon or is it going to only go higher? |
"I need metal in my life, just like an eagle needs to fly."
-Joseph DeMaio : Die For Metal |
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theo
Penny Hoarding Member
USA
588 Posts |
Posted - 05/07/2010 : 21:37:27
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quote:
Originally posted by Shattered
I have a question that is somewhat on topic. I have only been in the game for a short time so I don't have much experience.
Just a few months ago silver was going for $15.00 and now I saw it up past $18.50. Is it likely for it to go back down to those levels anytime soon or is it going to only go higher?
As others have stated in this thread, there is a comparatively small market for silver making it more subject to volatility than its yellow cousin. So the short answer is; yes, its possible. From what I've read there is strong support at around $16.60, and if breaks through that level, $15 definately could be the next stop. My prediction is that if it does get down to that level, it won't stay there long before recovering.
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Investin Cents
Penny Pincher Member
USA
129 Posts |
Posted - 05/07/2010 : 21:56:17
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I really hope Silver goes up soon - I am tired of it lagging Gold so much. Or, I hope Gold drops like a rock - either way it will be more equitable.
I still cannot bring myself to buy Gold (at these levels) - it is just too expensive in relation to Silver. Gold is like having a $100 bill at a soda vending machine. Yes, both are money, but both useless for small purchases that need lesser-denominations for immediate needs.
Plus something tells me that Gold (and yes, maybe Silver) will peak soon and drop sharply, just like back in the early 80's. Somehow governments will find a way out of this mess (or cover it up very well) and put off doomsday for another 20 to 30 years. |
Most recent book I've read: "Meltdown" by Thomas E. Woods Jr. Current book: "I.O.U.: Why Everyone Owes Everyone & No One Can Pay" by John Lanchester |
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twentybux
Penny Pincher Member
174 Posts |
Posted - 05/07/2010 : 22:20:11
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| I agree that The Man (gov't) will try to find a way out of this mess, but eventually they too will run out of tricks. |
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Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
Posted - 05/08/2010 : 05:47:57
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your time frame is too short.
gold just had a big move due to huge volume currency swings internationally. silver just has to catch up.
secondary factors are that its an industrial metal and is a smaller market more easily manipulated.
key reason is you are just impatient. |
Buying:
Peace/Morgan G+ at $15.00
copper cents at 1.3X
wheat pennies at 3X
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Sovereigns
New Member
15 Posts |
Posted - 05/09/2010 : 13:54:53
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quote:
Originally posted by PennySaved
Did you see the spike in silver today?
up almost $0.69 (4%) while gold was only up $0.70 (0.06%)
Seems like the tables were turned today
I believe it had something to do with the trading commission issuing a warning to the market to remind participants that speculative trading limits apply throughout the trading day as well as at the end of trading. Within an hour after this announcement silver jumped almost $1. |
Gold Sovereigns |
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Why is gold outperforming silver?
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