What's Going on With Gold/Siver? Should I Invest in Oil Instead?

[cubical]

fall just a but more and I will be buying.

 

[Dr.3D]

Watch the physical metals and you will see there really isn't much of a drop in the prices.

 

[StilesBC]

This is NOT an implosion of any kind. People here really seem to have short memories. PMs can move breathtakingly on a day to day basis. In the crisis of '08, it was not abnormal to see swings of 10%. Please don't get hysterical over a 1.5% move and claim "blatant manipulation."

 

[Seraphim]

exactly.

For most of our purposes, reality...the physical metals...are what we are concerned with for ourselves.

Watch the physical metals and you will see there really isn't much of a drop in the prices.

 

[hazek]

I was asking only because I saw other commodities also going down, not just PMs and so I was wondering what might be the cause of that.

 

[Dr.3D]

This is NOT an implosion of any kind. People here really seem to have short memories. PMs can move breathtakingly on a day to day basis. In the crisis of '08, it was not abnormal to see swings of 10%. Please don't get hysterical over a 1.5% move and claim "blatant manipulation."

Yeah, even if it is "blatant manipulation".

 

[enoch150]

I was asking only because I saw other commodities also going down, not just PMs and so I was wondering what might be the cause of that.

A slowdown in the global economy would cause most or all commodities to fall a bit. If Brazil, India, and China are raising rates, Europe has some kind of austerity measures, that could slow down the economy enough that commodities take a hit.

http://www.bbc.co.uk/news/business-12272717

 

[juvanya]

Hopefully they go down before rebounding. Altho I will be depressed thinking about how I bought all my silver at around $28-9.

 

[JoshLowry]

Hopefully they go down before rebounding. Altho I will be depressed thinking about how I bought all my silver at around $28-9.

Cars (4 wheels, motor, enclosure) were around $1500 brand new in the 1950's.

Protect your purchasing power. They are stealing from everyone.

Also brought up to me recently: They tax your real estate yearly, but not your precious metals.

 

[Danke]

Cars (4 wheels, motor, enclosure) were around $1500 brand new in the 1950's.

Protect your purchasing power. They are stealing from everyone.

And Muscle Magazines can go for around $5 compared to 35¢ in 1954.

 

[juvanya]

Also brought up to me recently: They tax your real estate yearly, but not your precious metals.

Dont give them any ideas!

 

[Seraphim]

At 27$ silver, I am thinking there is maybe another 1$ drop in store for us.

Near the end of December I had stated that 25-27$ price range correction/consolidation would be 1) healthy 2) needed 3) An entry point/buy opportunity.

Even though the trend is down right now, there is a lot of support and 27 right now is proving the be hard to go lower. Silver hits 26.80$ and the market gobbles it up and pushed it back up.

Combine that with unprecedented demand for physical we are seeing the unravelling of paper markets and the Comex.

It wouldn't surprise me to see 30$ spot and 50$ physical by Sept 2011. A sizeable MONEY/SAVINGS position in physical PM's (as a % of assets) will put you in a very good position over the next half decade, or more.

It's going to get VERY bumpy and PM's will offer you some padding where you need it most.

Hopefully they go down before rebounding. Altho I will be depressed thinking about how I bought all my silver at around $28-9.

 

[TomtheTinker]

Wasn't gold supposed to go to 1500 by Feb?

That is like saying the fish are suppose to bite at 6:00 a.m.....sure its sounds about right but there are to many variables to be able to predict what golds price is going to be on any given day.

 

[pmbug]

...
It's going to get VERY bumpy ...

 

[Seraphim]

Just checked with my dealer.

Premiums on physical silver are up 50 cents per ounce and gold premium up 20$ per ounce.

At 27$ silver, I am thinking there is maybe another 1$ drop in store for us.

Near the end of December I had stated that 25-27$ price range correction/consolidation would be 1) healthy 2) needed 3) An entry point/buy opportunity.

Even though the trend is down right now, there is a lot of support and 27 right now is proving the be hard to go lower. Silver hits 26.80$ and the market gobbles it up and pushed it back up.

Combine that with unprecedented demand for physical we are seeing the unravelling of paper markets and the Comex.

It wouldn't surprise me to see 30$ spot and 50$ physical by Sept 2011. A sizeable MONEY/SAVINGS position in physical PM's (as a % of assets) will put you in a very good position over the next half decade, or more.

It's going to get VERY bumpy and PM's will offer you some padding where you need it most.

 

[Bossobass]

Uhh crude production is peaked. oil is the best investment in the world at the moment

I've never believed that oil is a fossil fuel. I've never believed that anyone can predict peak oil (which Schlesinger convinced everyone was imminent in the late 70s, but now says is imminent today) and, if the wankers really believed the BS, their partners in crime would not have been building and selling 18 mpg vehicles for the past 1/2 century.

Despite the medias "no new finds since, blah, blah":

Scientists at the U.S. Geological Survey announced Friday that approximately 513 billion barrels of “technically recoverable” oil were found in the Orinoco belt region of Venezuela – twice as much as previously believed.

Outside the Middle East, the largest oil reserves in the world exist in Venezuela. The Orinoco region spans a 50,000-square-kilometer (19,305-square-mile) area in the eastern portion of the country. Nearly 20 foreign oil companies hold contracts there, according to the Latin American Herald Tribune.

BG's Brazilian oil find will 'dwarf' BP's strike in the US Gulf Coast

Even if one remains unconvinced about peak oil and the timing of it, these 2 latest finds doubles capacity in the short term.

Gold and silver are a different story, IMO.

Bosso

 

[Seraphim]

There is also the emergence of alternative energy technologies that moving forward will remove some of the pressures on oil driven energy. We aren't there yet but it IS coming. Energy demand is increasing, but so is energy production.

I've never believed that oil is a fossil fuel. I've never believed that anyone can predict peak oil (which Schlesinger convinced everyone was imminent in the late 70s, but now says is imminent today) and, if the wankers really believed the BS, their partners in crime would not have been building and selling 18 mpg vehicles for the past 1/2 century.

Despite the medias "no new finds since, blah, blah":




Even if one remains unconvinced about peak oil and the timing of it, these 2 latest finds doubles capacity in the short term.

Gold and silver are a different story, IMO.

Bosso

 

[Dr.3D]

This is NOT an implosion of any kind. People here really seem to have short memories. PMs can move breathtakingly on a day to day basis. In the crisis of '08, it was not abnormal to see swings of 10%. Please don't get hysterical over a 1.5% move and claim "blatant manipulation."

John Embry: 'Manufactured' gold correction will produce lowest price for year
http://www.sprott.com/Docs/InvestorsDigest/2011/MPLID_012811_pg003Emb.pdf

 

[YumYum]

I've never believed that oil is a fossil fuel. I've never believed that anyone can predict peak oil (which Schlesinger convinced everyone was imminent in the late 70s, but now says is imminent today) and, if the wankers really believed the BS, their partners in crime would not have been building and selling 18 mpg vehicles for the past 1/2 century.

Despite the medias "no new finds since, blah, blah":




Even if one remains unconvinced about peak oil and the timing of it, these 2 latest finds doubles capacity in the short term.

Gold and silver are a different story, IMO.

Bosso

This is a very interesting post. I wish you would elaborate a little more on oil not being a fossil fuel. You make some very valid points. They say we are running out, but they keep finding more oil.

Also, why do you think gold is following oil? Gold is independent of the dollar (gold goes up when dollar goes down). But lately, gold has been reacting to the moves made by oil.

 

[pmbug]

For you YumYum:

Over the past several weeks there had been rumors that the reason for the precipitous drop in gold was primarily driven by a hedge fund liquidating its futures positions. This has now been confirmed: "Yeah, that was just me liquidating my spread position," Mr. Daniel Shak, [of SHK Asset Management] 51 years old, said in an interview. "I had a significant, fully margined position. The dollar amount of the gold liquidation was very small, it was just a lot of contracts."" Of course in the extremely jittery gold market, the kind of persistent marginal gross selling of contracts was all that was needed to spook week hands into a consistent dump of the precious metal, which as we pointed out was beyond overdone. Judging by this morning's jump in the precious metal SHK's liquidation is now over. Look for gold to resume its upward advance as investors realize that the gold dump was nothing more than an ongoing futures position liquidation.
...

http://www.zerohedge.com/article/meet-man-behind-liquidating-hedge-fund-blew-gold-market