Why Gold and Silver are dropping ...

reply to post by SeekerofTruth101


"give a greedy man an inch and he will want to become a ruler".

Brilliant!

with the drops all i see is a better buy for me

The greatest commodity one can have is FOOD! So, all y'all that are collecting gold and silver...hit me up when you get hungry...cuz that's the only thing you'll be bartering for. I mean, who determines the price of gold or silver? And if 'they' determine it too be worth $1 dollar....what EXACTLY can you do about it? Not too long ago...gold was selling for $700 or so an ounce...and today's price? So, why has the value increased? And, if you bought gold, at $2,000 an ounce and it sells tomorrow or $1,000....how is that a smart investment.

Here's another smart investment....MARIJUANA! Or at least some good seeds. No???? hahahahah

Originally posted by jamiejames
The greatest commodity one can have is FOOD! So, all y'all that are collecting gold and silver...hit me up when you get hungry...cuz that's the only thing you'll be bartering for. I mean, who determines the price of gold or silver? And if 'they' determine it too be worth $1 dollar....what EXACTLY can you do about it? Not too long ago...gold was selling for $700 or so an ounce...and today's price? So, why has the value increased? And, if you bought gold, at $2,000 an ounce and it sells tomorrow or $1,000....how is that a smart investment.

Here's another smart investment....MARIJUANA! Or at least some good seeds. No???? hahahahah

edit on 25-1-2011 by jamiejames because: (no reason given)

Food is perishable, precious metals are not. You can't by an acre of land or a really good hunting rifle with a bushel of corn, but you can with a piece of gold or several pieces of silver. You can easily transport your wealth across a distance, not so much with a storehouse of food. Again, you have to look at the big picture, not an immediate need.

S&F.

Gold will always be prized and have worth, Its been like that for 1000's of years and is not about to change because some ATS posters dont have any and slag it.off.

In 1975 when the US was chased out of Vietnam, they left behind 10's of 1000's of South Vietnamese collaborators who had to flee the North Vietnamese Regime. How did they manage to escape?
They bought their sea passage on boats using gold bars.... thats right... gold bars.

Forget the BS MSM reports that reported the plight of these "poor" boat people cos guess what? They were not poor and had their wealth in gold and that is what got them out of the country when the US legged it and TSHTF.

I laugh when I hear people here say "You cannot eat gold" My answer to that is "Why would anyone want to eat gold?" People who are savvy enough to own physical gold are also savvy enough to have food supplies tucked away.

To the member (Saturn X - I think) who said you cannot rub gold and it turns into a boat, guess what mate? If youve got enough, not only can and will it turn into a boat (see above) but it can also turn into a helicopter or a plane and if you want to get out of a country fast, guns, ammo, arable land and bags of food will just not cut the mustard with the ferry man.

A gold 20 dollar coin is a gold 20 dollar coin and people immediately know what it is when they see one.....Oil paintings? You really are having a laugh arent you? most people could not tell a Monet from a Manet so who could you possibly sell them to when TSHTF?

Your average fine art dealer will be long gone, on the boat already

PEACE,
RK

A wave low this morning (day session; yest in night session) of an ABC correction for both Gold and Silver. This rally will fail and then we will make a lower low (

Originally posted by CosmicCitizen
They are "shaking the tree" (of weak longs).

I think there may be more than a little substance to that statement

I am not so sure about the big cash payoffs by institutions who cannot deliver physical PM's.
In todays climate, where fraud in the financial industry goes unpunished, I suspect that they will pay out current market price in Fiat and say "like it or lump it."

Any ETF holders here who fancy requesting delivery of physical and confirming or killing this blog rumour?

PEACE,
RK

Pretty big bombshell reported today on Zerohedge. Looks like the jig is up and GOLD will be back on the rise early next week.

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 weak 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 PM complex, SHK's liquidation is now not only over but about to promptly reverse as daytrading momos realize they were duped by one single guy. Look for gold to resume its upward advance as investors realize that the gold dump was nothing more than an ongoing futures position liquidation.

Meet the Man behind the Liguidating Hedge Fund that blew up the Gold Market


Here's another good one as well:

Gold is the only asset that takes the escalator down and the express elevator up. Incidentally, the 3% surge in WTI was predicted by Zero Hedge yesterday on what is completely common-sensical assumptions. What kind of idiots are running this market if someone is surprised by what is happening today?

Gold Flash Smash

reply to post by OnTheFelt


Nice, OnTheFelt. Also from Zero Hedge is this article, for those who might be interested, in the GATA position on the history of the price manipulation.

www.gata.org...

reply to post by alyoshablue


Good article. Thanks for posting it.
Probably a good day to go by the coin shop and pick up a few more. That and another bag of rice and beans!

Will a loaf of bread buy a bag of gold because breads expensive or gold is cheap?

You can't say that gold will always hold it's value. If the world plunged into chaos and societies fell, or a mass die off of humanity occurred, gold will be worthless becuase it's locked up in vaults and too heavy to carry and if I had food you needed, what would I do with your gold, use it for a doorstop?

So we only have a 7% drop inside 30 days. Not too bad. But if this rate occurred for 6-7 months there will be some pissed off small investors and some happy traders who will buy more at cheaper rates and wait until it rises again, unless they die in which case it's worthless to them.

In the end, when your dead, the amount of gold you owned means nothing.

This is going to be a great week for metals and other commodities. Sad for the people of the middle east, but I expect some good things for silver this week riding on the back of these protests. I don't think we're going to see prices lower than where they're at right now for a while, if ever. The silver squeeze just got pushed forward and this might be the Black Swan event we were waiting for in metals. I don't know about you, but I was getting tired of watching gold and silver dive while the dollar was doing the same thing. And that's on word of shortages at the same time the US Mint is making record sales this month. If that isn't a sign of manipulation, I don't know what is. Definitely time to make purchases if you've been sitting on the sidelines waiting for them to drop just a little more.

Saw this article today. It's over my head., I have no idea what noncontango means or backwardation, but down the page on the link it explains at least. What I am reading is silver is in short supply, the futures market is lower than the spot price, which is backwards and unheard of, people do not want to sell their physical silver for a higher futures price for fear of no physical to be found in the future. PM manipulation galore going on, but not for much longer? Did I get that right?

harveyorgan.blogspot.com...


I would hold that metal a while longer.

we were supposed to sell the head and shoulders pattern at 1428.....
i should have told ya....now what we have is the little known february 4 reversal....it can be valid for 6 weeks at least....it's the japan fiscal year ending in april according my view.....w d gann found it way back when....

reply to post by GBP/JPY


Ok, now explain what you just said to someone that does not speak that lingo. I've heard of the head and shoulders chart, but hasn't that been thrown out at this point? Seems we are in unprecedented territory in our financial history, with all the debt, and no great US business to show for it anymore.

Big up-move today in metals.

Just a reminder to those who follow metals, any serious escalation of conflict in the Middle East will almost certainly push oil, and then metals, considerably higher.

With rumors of "secret" meetings going on around the globe right now, I wonder if we are on the verge of something "big".

JR

reply to post by JR MacBeth


i hear ya, i hope everything pans out. I dont understand the people that wish the world to go to hell???? they really dont know what they are wishing for. the only thing you can do is get ready for it.

Im ready but am not wishing for TSHTF

reply to post by camaro68ss

I dont understand the people that wish the world to go to hell????

Yeah, it's interesting, but here on ATS, there are plenty that seem to want to just "get it over with".

I've got family, kids, the last thing I want is terrible things, but we live in a world where it only takes a few (wealthy and powerful) terrible people, and bad things can happen.

Which is why some of us "prudent virgins" try to keep some oil in our lamps, so-to-speak (old biblical reference). We're not big fish, we don't know "when" exactly things can get very bad, but if we make a few simple preparations, it doesn't matter so much. When the SHTF, whenever it does, we'll have done the right thing by our families, and there will be no regrets.

JR

reply to post by SunnyDee


sunnyd....i'll give the price levels to expect....this is good....elliott waves get into it and there's been a break through.... dow and gold prices follow elliott pretty well because of the large populus trading them( the more general public, the better)i have a spread sheet, i'll go get the levels....basically we're due for a wave 5 up in both....