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4/12/13

Gold & silver down...way down

Gold plunged $84 an ounce today, 5.38%, closing at $1477 an ounce. By percentage, silver is down even more, down over 6.5% at the close of the market. Both closed at their lowest point in the past two years.


The sell off is being blamed on a variety of factors, mostly boiling down to two big uns:

1. Cypress and other countries perhaps being forced to sell their gold reserves in order to receive the ECB bail out - read more here. This would dump several tons of gold onto the market, increasing supply and theoretically driving down demand.

2. As the general investing public is gradually perceiving markets to be recovering from the crash and the Fed is starting talk about easing off the money printing quantitative easing train, there's been a slow move away from precious metals. Today's slide started as a more moderate down turn but then triggered off automated sell positions as it descended down past $1525 and $1500. As these price levels were passed and more sales book, more gold was dumped onto the market, further driving down prices. 

So, at the end of the day, an ounce of gold is worth fewer USD at the end of today than it was this morning.

What action you'd take depends on your long term view of the economy. If you think we've turned the corner, the economy is stabilizing and that we'll see some good growth in the stock market, you may want to think about selling some PMs and parking that cash elsewhere.

On the other hand, if you feel like the future of the economy still looks grim and the recovery uncertain, this weekend might be a pretty good time to jump in and buy some discounted gold and silver.

What are your thoughts?

18 comments :

  1. This beat-down is "paper contract" manipulation by the Walking-Dead Anglo-Am banksters and their trading bots ...

    Every time this occurs, real folk [read: India, China, South Korea, Iran, Turkey, Oz] pick up phyzz. The Fed and their Uro counterparts seal their own doom

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  2. Based on the current value of the American dollar I would hold on.

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  3. Scare tactic to get people to sell. GS will them buy everything up so they can continue to manipulate the market. When GS is telling people to sell PM's, you should buy instead. Expect a sharp upswing in 4-6 weeks.

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  4. time to buy gold I think... just saying, buy low sell high. gold is a very stable metal, silver is a little more wobbly.

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  5. I would not sell core holdings. On the other hand if you have metals above and beyond whatever stash you deem necessary I would look at selling. The time to sell silver at the peak is past, Gold's time may be getting short also.

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  6. Why exactly did the price drop? Exactly what's it going to do next and why? If you really knew for sure you'd be a billionaire. It is awfully high and a I think the current value is pretty soft. I think we've had a bit of a gold bubble over the past few years. There are two reasons most people buy gold. One is as a shorter-term financial investment and the other is as a long-term safeguard against doomsday: disasters/banking-collapse/hyper-inflation. I expect many of us buy pms for the later reason. In which case figure out how much precious metal you want for that purpose and work towards that goal. Once you reach that point (your 'core holdings' as Ryan puts it) there is no need to ever sell. If your happy with that as your gold horde then keep that gold for ever and when you die you'll grand-kids can fight over it. What the gold price does tomorrow and the value of gold post-collapse is completely unrelated.

    Anything above and beyond that core horde of gold is a shorter term investment, which is fine too. If that's the case then buy and sell in an attempt to get some kind of return on your investment. But hopefully your either really smart or have access to a crystal ball. The precious metals market isn't as straight-forward or predictable as it might seem.

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  7. The last time that metals and gas dropped dramatically was during the crash of 08-09. Is there a similar crash brewing?

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  8. So the price of gold dropped because there was a discussion around Cyprus selling their bullion reserves to pay their debts to the ECB. When there is a rumor or an actual sale... many people sell their "paper" based shares of Gold, this in return drives down the price... yes... it is highly probable that the "bots" were told to automatically sold the over billion dollars in gold stock... somebody made it take a dive... they will "rebuy" now that it is low... and that will in return drive the price higher... much higher...

    Now is a good time to buy Gold / Silver... it is low... and it is real wealth!

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  9. the gold price falls a little, and really it is a little compared to what it used to sell for a few years ago, just a few years. gold will come back hard every time a nation goes into deep distress, the gold will rise then suddenly fall as they sell their holdings. that said, there is nothing a stable as gold, like real-estate it will always have worth. silver can drop to 9 bucks where it was a few years ago, gold could slide down another 300 or so, but it wont drop to the 1000 dollar an ounce for at least a decade, and if the USA keeps going into distress, it will be the money you want to have in hiding, not in a bank, because the dollar will not be worth the paper it is printed on.

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    1. Yep, PMs are pretty cool that way. If you had a chest full of gold 500 years ago, you were a very rich man. That same chest of gold today would still make you a rich man. Heck, you could go back to the time of the Romans or the Egyptians and still be very rich. Don't see a lot of places accepting 500 year old currency these days.

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  10. Hi all! I'm pretty new to the prepper scene. I understand that precious metals may become the preferred method of trading post SHTF/TEOTWAWKI if cash loses its value.
    Are there significant differences between having a cache of silver eagles/maple leaf/etc as opposed to "junk silver?" I don't have much of either, I'm just curious.

    Thanks!

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  11. jnunk silver is fine as long as it is the same quality you know 99% silver, heck even the 40% stuff is worth keeping. some of the 1965 stuff was only 40%, prior to that is was 99%. I have some of all the denominations, dimes, quarters, halves and dollars, then some tenth once gold coins (eagle and maple leaf) because I cant find the 1 gram bars up here anywhere. that is the best way to hold gold, and it is easily traded just like money. lately you could buy the 1gram bars for $60 each so buy one a week if you can, thats 4 a month before long you have some stashed, same with old silver coins, but I do have some silver and gold jewlery also. what ever you have will work as long as it is gold or silver.

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  12. I never got the gold and silver thing. The stuff has been severely overvalued for like a decade, largely on the strength of mass delusion.

    When the world ends, will it really be better to have six ounces of gold, or $10,000 worth of sustainable preps at pre-apocalypse prices?

    Apart from that, precious metals aren't used for bartering. They constitute a commodity money, a monetary system with more or less the same level of dependence on state-driven order as fiat currency.

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    1. Obviously being prepared with the right goods and materials is a top priority. But forms of currency can come and go, and precious metals have stood the test of time. The USD or the Euro could suddenly go tits up but gold and silver will always mean something.

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    2. They will mean something. The question is whether they will mean enough. It seems to me that everyone is buying high, and will end up selling low whether the apocalypse happens or not.

      The artificial scarcity created by the current commodities market has driven the price of gold higher in terms of the labor hours required to procure it, than the level of actual scarcity will do in a total collapse of the global economic system.

      I'll bet you 50 rocks and a chicken. Check in with me when the world ends and we'll settle up.

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  13. Who in the heck actually things these metals are worth anything? If your economy collapses where you live the only thing of value is your livestock, garden, water supply, house (especially if paid off), guns, and ammo. I don't understand why people actually think I would accept an OZ of silver for my livestock if SHTF. Now trade me a 100 rounds of 30-06 HP and you can have the goat and that's if I don't shoot you first and take the ammo and keep my goat.

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    1. Can't eat silver, my friend. Right on.

      Though I don't think I'll be bartering with you though if you're going to randomly start blasting away with a .30-06. That there's bad for business.

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  14. Let's not forget that this forum is about preparing and making ready for a really bad situation. Whatever may come. Murder is and act that never changes no matter the place, time or situation. Self-defense is one thing, but if your SHTF plan is to just murder people and take their stuff, this not the form for you.

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