several factors will effect the price of gold n silver in the coming months.
Iran is opening an oil borse this month! Iranian oil will no longer be traded in US dollars, but in euros, so from this, the US dollar will drop more.
Japan has been told by Iran that they will accept Yen for oil, but not US dollars, Venesuela has said they will join in, along with syria and russia, so alot of demand for the dollar will fall big from this....it's just a matter of time.
I beleive as well as GATA, that the FED bankers have been manipulating the price of gold to keep the USD looking good, but all the fundamnetlas point to the dollar loosing alot of its value.......many things indicate there is a big drop in the USD coming.....M3 fed reports are no more, the Suadis have threatened us to decouple oil from the dollar if we hurt Iran's oil borse, latest news says we've cut under sea communication cable of the iranians to stall the oil borse, our own economy going into recession, the china economic bubble...... there are many threats to the collapse of the dollar. Some have said they see the USdollar fallng 50% from were it's at now. add in the fac tthat the fed is diluting it thru inflation and the 3.1 trillion dollar bush propsed budget...... there is just so many factors playing into this. This could be an opportunity of a life time if you play your cards right....... if you buy gold n silver and real estate goes down, as silver goes up, you could cash in the silver and buy real estate for dirt cheap if the scenario I think is coming plays out that way.
Plus add in the factors that if we are headed for a hard recession and this hurts china, they will dump some of their many dollars on the market to help them get thru this turbulant time...... with dollar heavy china, japan and the middle east and the fact that the value of the dollar is dropping and the temptation of central bankers to want to "diversify" (dump) out of the dollar, I can;t see too much of a drop coming in precious metals...... there are just too many fundamental factors playing into precious metals rising alot more......... I can see silver over $30 an oz and gold over $1200 an oz soon and much more due to the dumping of the USD.
We are entering into a really turbulant time for the USD IMO.
Ther eis the factor of the production, but I don't see prodcution keeping up with the dumping of the dollar events that are going to take place in the near future. I see a gold rush coming.
When I buy, i buy for the long, so i don't worry about if Gold is at $930 or $850. I buy the dips and hold at these little peeks becasue I never know when it's gonna take off big, but I expect some future geo political events and frail economics to take gold and silver up in a big way........ some of these events could make silve rand gold jump and not come back down.
I also diversify. I keep some USD around for spending and living of course, but you don't want too many of those around in case soemthing does happena nd they loose 30% in a matter of a couple days on one of these big events to come, like war with Iran or china dumping the dollar...... notice some big wig form the middle east bought 10% of the Nasdaq...... we needed to alow them to do that becasue they were dollar heavy and if we didn't, they would dump those dollars to move them into some kind of hard asset. I expect, that if a dollar dump or too much dollars are in one's coffer, they will move those dollars into hard assets....then those dollars will be moved around and eventually dumped somewhere on the market. There are just too many USDollars around becasue of the Fed's overprinting of them and I expect the supply side of the USD not to be lacking at all these next 5 years.
Everything says the FED will continue to dilute and over print the dollar to stav off inflation. if they don't do this, the China bubble will bust some, causing them to dump some dollars, them it will have a ripple effect to the middle east, where oil will cost alot more and a whole economic global ripple effect could take place and then, Burnthebanke will be forced to either raise interest rates and firmly implant us in stagflation, which will cause a global recession and the dyumping of the dollar by foreign makrets to cover their buts or keep inflating and devaluing the dollar eventually with hyper inflation....either way, I see a safe haven in gold n silver...... these next 3 years are gonna be some of the most exciting economic times....also some of the most heart wrenching times for thos ewho chose to go the uneducated route......
