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Why Are Gold N Silver Tanking?


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HOLA441
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HOLA442
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HOLA443
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HOLA444

Gold and Silver prices rose when the western banking system was on the verge of collapse.

Western governments did everything in their power to support the banking system and the price stabilized.

It looks like QE is going to continue for the foreseeable future and interest rates will not rise above 2% for about 10 years. As a result share prices and property prices will continue to rise in value and people are selling their holdings in precious metals to jump on those bandwagons.

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HOLA445
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HOLA446

Economies haven't changed. To me it looks like they're diverting your attention over here with something all nice and shiny (on the outside), whilst over there they're buying up precious metals on the cheap (nice and shiny on the inside).

Ah, the conspiracy theory.

There is a time to buy and sell everything.

I am finally becoming interested in gold, but saw it for the mug's game it was above $1700 (let alone $1900). The precious metal cheerleaders have caused serious damage to the finances of Guitarman and probably Bart to the extent that I doubt we will ever see them here again.

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HOLA447

The precious metal cheerleaders have caused serious damage to the finances of Guitarman and probably Bart to the extent that I doubt we will ever see them here again.

The real problem was the time frame. The inherent problems with charging interest upon loans created through Fractional Reserve Banking will appear eventually but the time period could be 15years plus. Yet many of the commentators I followed in the past would talk as if 1 oz of gold would go to $10,000 in under 1 year. And people believed them.

They didn't understand the fundamentals of investing and have been badly burned. If they can hold their nerve, buy on the dips and wait they will be in a good position but most people sell on the dips and buy at all time highs.

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HOLA448

Your thoughts?

I remember seeing an advert for spread betting which invited the punters to work out what gold was going to do next. There was an ilustration with loads of text bubbles and arrows to illustrate potential links. Check it out:

http://www.financial...ent_mapping.jpg

Now have you worked it out? (snigger)

It's in human nature to look for reasons and order but I think the point of the advert is to trick you: short term movements in big global markets are essentially random. That's a slightly depressing thought but I think IG wanted to encourage people to look for cause and effects to entice them to make bets.

If we stand back and look at the gold market from a 10 or 20 year perspective, you might see a huge bubble that is taking to years to deflate. Some people here won't like that idea at all but maybe there is no argument to explain things - it just is.

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HOLA449

At the moment, there's an attitude in mainstream investing that says that the problem is solved. This is putting equities on the rise. Gold and Silver are not short-term bets. I am continuing to buy PMs as I've made quite an excellent return so far, and if the price is falling, then I'll keep buying. Nothing, absolutely nothing I have invested in, has made such good gains (or protected my assets, depending on your point of view) as PMs, and I am one of those who believe (but may be wrong) that once the Chinese can take no more Gold off the West then they will allow the US Dollar to collapse.

If I had more funds, I might put them into shares and get a bit of benefit from this movement, but I'm happy to keep my small stack for the moment. I think the US is mad to keep selling Gold to the Chinese, but it will make us all a lot of money in the end. If you have some spare cash, then play both lines of investment; but at the moment, G&S are for holding long-term.

I am fortunate in that my Gold & Silver are also useful to me as industrial metals, so I don't mind if they get cheaper, I got most of mine some time ago, and I'll use it eventually. I am still buying Sovs a couple at a time.

Edited by Old Nis
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HOLA4410

Gold and Silver prices rose when the western banking system was on the verge of collapse.

Western governments did everything in their power to support the banking system and the price stabilized.

It looks like QE is going to continue for the foreseeable future and interest rates will not rise above 2% for about 10 years. As a result share prices and property prices will continue to rise in value and people are selling their holdings in precious metals to jump on those bandwagons.

Nearly +1. I think property prices will largely drift sideways for the next ten years, but everything else I agree with.

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