What's happening to PMs?

[Dr.3D]

I look at it differently. There is no PM bubble but a Gigantic FIAT bubble. The fiat bubble is bursting. Its lasted over 30 years and its going to be over soon.

More like a vacuum bubble.

 

[seapilot]

More like a vacuum bubble.

Exactly. There are way too many dollars floating in the world starting to chase too few goods and services. Even if PM doesnt increase in designated fiat value it will get harder and harder to find any to purchase as the price stays suppressed.

 

[Ron Galt]

It's simple... you print money, buy gold and then sell it for less than you paid for it. You can drive the price down to nothing.

 

[buffalokid777]

Markets don't go up in a straight line.

We're in the middle of a correction. It could go even lower before it goes higher. When the price is down, think of it as a buying opportunity. Other people are being stupid and selling; now is a good time to buy.

Instead of focusing on the price, think about PMs in terms of other things of real value. How much oil can you buy per ounce? Or the ratio of the price to the Dow:

looking at this chart........tells me this.......

during the great depression.....at the bottom of the trough........you could trade 2 ounces of gold for the dow..........

during the 70's which cumulated in the PM spike in 1980.....at the bottom of the trough,,,,,,,you could trade slightly over 1 ounce of gold for the dow.......

I predict this time when we hit the trough.......you will be able to trade .5-.7/ ounce of a gold for the dow........

I predict the first point we can get to that....is 2012.....I predict the latest we will get to that point is 2018.......the fed has abilities it didnt have before.....but by 2018......I truly believe there will be a point where .5-.7 ounces of gold will buy the dow.....

 

[NinjaPirate]

looking at this chart........tells me this.......

during the great depression.....at the bottom of the trough........you could trade 2 ounces of gold for the dow..........

during the 70's which cumulated in the PM spike in 1980.....at the bottom of the trough,,,,,,,you could trade slightly over 1 ounce of gold for the dow.......

I predict this time when we hit the trough.......you will be able to trade .5-.7/ ounce of a gold for the dow........

I predict the first point we can get to that....is 2012.....I predict the latest we will get to that point is 2018.......the fed has abilities it didnt have before.....but by 2018......I truly believe there will be a point where .5-.7 ounces of gold will buy the dow.....

"Buying the dow?" ....English, please?? :o

 

[Zippyjuan]

There are index mutual funds which buy the same stocks of the Dow Jones Industrials in the same ratios as the index- this allows you to invest in the Dow.

I think that the reason for the pullback on gold is that the speculators have moved out of there and into energy markets causing those prices to go even higher.

If something is going up quickly and it seems like everyone is buying it, that is the time you want to be selling. Gold recently went throught that- more quickly than I thought it would. The problem is that energy speculators can have a more negative impact on the overall economy (and hence their other investments) than something like PMs since we are so dependent on fuels.

 

[AceNZ]

"Buying the dow?" ....English, please?? :o

In other words, with a 1:1 Dow:Gold ratio, one ounce of gold would have the same value in dollars as the Dow Jones Industrial Average -- so you could sell the gold and buy the stocks that make up the Dow, or buy Dow futures, etc. In reality, you would probably just buy stocks, rather than literally buying the Dow.

 

[RSLudlum]

In other words, with a 1:1 Dow:Gold ratio, one ounce of gold would have the same value in dollars as the Dow Jones Industrial Average -- so you could sell the gold and buy the stocks that make up the Dow, or buy Dow futures, etc. In reality, you would probably just buy stocks, rather than literally buying the Dow.

I didn't know what that phrase meant either till a couple of months ago when I heard Peter Schiff explain it in an interview; he uses it quite often.


Does anybody think silver while drop to $15 or $14 ie the spot it was at coming into 2008?