What the hell is happening to gold and silver?

[Jeez]

1 ounce of gold, the rest silver...IMHO.

Imo as I told you last month there is industrial sell off under way in silver due to recession fears. It can easily go down as low 20.

 

[Seraphim]

"Industry" is a little too broad. Demand for solar and the like are still increasing - PV cells require silver to operate.

Overall there are vastly more +'s then -'s for physical silver.

A deflationary crash could see silver go into the 20's...no doubt. I am hoping for that, actually - that doesn't mean it wil occur though.

Imo as I told you last month there is industrial sell off under way in silver due to recession fears. It can easily go down as low 20.

 

[Jeez]

"Industry" is a little too broad. Demand for solar and the like are still increasing - PV cells require silver to operate.

Overall there are vastly more +'s then -'s for physical silver.

A deflationary crash could see silver go into the 20's...no doubt. I am hoping for that, actually - that doesn't mean it wil occur though.

Solar industry is good example lot of companies are going to go under in coming months. But biggest sell off will come from auto suppliers which were couting on car sales to improve in USA and Europe and to continue booming in BRIC. With the storm appearing in horizon they are going cut down consumption and liquidate excess inventory.

 

[Seraphim]

Car companies will effect palladium much more than silver.

There are many government subsidized solar companies that are struggling - yup.

Solar industry is good example lot of companies are going to go under in coming months. But biggest sell off will come from auto suppliers which were couting on car sales to improve in USA and Europe and to continue booming in BRIC. With the storm appearing in horizon they are going cut down consumption and liquidate excess inventory.

 

[-C-]

Honestly I think the productive capacity to mine PMs is going to collapse under the bloated aggregated bubble on top of them. This is just indicative of everything happening to all global comods. When this happens suddenly whats on top of the ground means a whooole lot more, right then, right there, than some speculative contract about some future shit not even coming out of the ground anymore, for whatever reason.

Imo as I told you last month there is industrial sell off under way in silver due to recession fears. It can easily go down as low 20.

"Industry" is a little too broad. Demand for solar and the like are still increasing - PV cells require silver to operate.

Overall there are vastly more +'s then -'s for physical silver.

A deflationary crash could see silver go into the 20's...no doubt. I am hoping for that, actually - that doesn't mean it wil occur though.

 

[Acala]

Imo as I told you last month there is industrial sell off under way in silver due to recession fears. It can easily go down as low 20.

One can hope.

 

[specsaregood]

One can hope.

I'm on the hope train as well.

 

[Sjmfury]

Will these prices stay this long for long? How Long? 6 Months? 1 Year? Any Ideas?

 

[WilliamC]

I got so happy at the drop in silver I went to the coin shop again today after just having gone yesterday and bought me a whole other ounce!

A sweet bicentennial commemorative bar for only $40 and change!

Of course on the way back my check battery light came on so I pull in to Pep Boys and spend $400 and change on a new alternator and battery

I wonder if that's suppose to show me the folly of my ways in thinking I can somehow get ahead by converting some of my not-quite-yet-worthless fiat into something tangible...

Nah, I'm still happy with it

 

[freshjiva]

"Industry" is a little too broad. Demand for solar and the like are still increasing - PV cells require silver to operate.

Overall there are vastly more +'s then -'s for physical silver.

A deflationary crash could see silver go into the 20's...no doubt. I am hoping for that, actually - that doesn't mean it wil occur though.

Why do you keep using this term "deflationary crash"? Deflation is when prices are forced lower due to a lack of liquidity. Inflation is the exact opposite.
So when you use the term 'deflationary crash', what is that in contrast to? An 'inflationary crash'?

 

[WilliamC]

Will these prices stay this long for long? How Long? 6 Months? 1 Year? Any Ideas?

Days if we are lucky.

As the system continues to unwind expect bigger and bigger swings until the ultimate break between physical and the futures market.

 

[Seraphim]

Look at the balance books of banks dude - they are so highly levered with toxic garbage that even the slightest inkling of duresss they shut down lending to other banks - THAT + liquidating assets to meet the margin calls of ones creditors causes deflationary crashes.

That is EXACTLY what happened in 2008. Could happen again.

Schiff said it right. We will have QE3 (inflation) or TARP2 (to save banks during a deflationary crash).

Why do you keep using this term "deflationary crash"? Deflation is when prices are forced lower due to a lack of liquidity. Inflation is the exact opposite.
So when you use the term 'deflationary crash', what is that in contrast to? An 'inflationary crash'?

 

[WilliamC]

Imo as I told you last month there is industrial sell off under way in silver due to recession fears. It can easily go down as low 20.

I dunno, under 'normal' circumstances you might have a point but it seems there is so much credit/fiat/fake money floating around that it would be extremely easy for several big players to buy up essentially all the available physical for what?

According to this http://www.silverinscripture.com/moreRAREthanGold.html there is ~671 million ounces of physical silver bullion in the world.

At $20/oz that's what? Not quite 13.5 billion?

Who wouldn't snap that up?

edit: at 30 I'd start eating into my emergency fund to buy more physical, at $25 I'd be tempted to go all in.

at $20 I'd be borrowing money....

 

[Seraphim]

Exactly.

I'm telling you, if silver sees prices that begin with a 2 and only has 2 digits, the amount of physical that will be gobbled up off the market will be massive.

It's been doing that everytime it touches prices in the 30's!! The support in silver is huge below 40$.

I dunno, under 'normal' circumstances you might have a point but it seems there is so much credit/fiat/fake money floating around that it would be extremely easy for several big players to buy up essentially all the available physical for what?

According to this http://www.silverinscripture.com/moreRAREthanGold.html there is ~671 million ounces of physical silver bullion in the world.

At $20/oz that's what? Not quite 13.5 billion?

Who wouldn't snap that up?

 

[Zippyjuan]

The value of the dollar was rising today- pehaps that helped push down the prices. Commodities often move counter to the value of the dollar (other factors being the same).

 

[Original_Intent]

Look at the balance books of banks dude - they are so highly levered with toxic garbage that even the slightest inkling of duresss they shut down lending to other banks - THAT + liquidating assets to meet the margin calls of ones creditors causes deflationary crashes.

That is EXACTLY what happened in 2008. Could happen again.

Schiff said it right. We will have QE3 (inflation) or TARP2 (to save banks during a deflationary crash).

I wouldn;t be surprised if they fail to pass TARP the first time, they make things so bad that the populace DEMANDS it and they will say "See, that's why we had to pass it the last time."

Whatever happens, the spin will be in.

 

[pmbug]

Why do you keep using this term "deflationary crash"? ...

Credit deflation

 

[billjones]

Exactly.

I'm telling you, if silver sees prices that begin with a 2 and only has 2 digits, the amount of physical that will be gobbled up off the market will be massive.

It's been doing that everytime it touches prices in the 30's!! The support in silver is huge below 40$.

If silver dips below 30 and the GSR is still below 50 I'd rather be all in with gold. Although I may have to get in on some sub 30 silver, too.

 

[Imaginos]

Same thing happened during the 2008 crisis, folks. Margin calls on stocks getting flattened is prompting liquidations in gold.
Longer term prospects in PMs are stronger than ever. This is nothing but a buying opportunity.

qft.
Brothers and sisters, don't panick because all you hear is a market noise.
This is a fire sale and make sure you keep on stacking and thank me later.
PM market will be continued to be volatile so you need to be calm and focused on the fundamentals, not on the short term noises.

 

[cubical]

buy gold, industrial demand for silver will evaporate