Why Gold and Silver are dropping ...

reply to post by SaturnFX


it is actually about supply and demand. pretend value is in your head.

Remember that gold and silver used in your CPU and the solder connecting all components are why your computer and most all electronics work. This is part of the intrinsic value of Gold and Silver. THey are necessary for all electronics devices.

Why ? Because Gold and Silver are the best electrical conductors. Next is copper.

Without gold connections on your CPU your CPU would not function once warmed up but would only bog down which is why copper isn't used. It simply isn't as good of a conductor. Gold doesn't tarnish and effect it's conductivity as silver and copper can.

There is a continuous demand for these precious metals for the electronics industry alone keeping demand high.

The price of gold and silver are indicative of the weakness of the dollar. Plain and Simple.

As the prices of Gold and Silver go up, Your dollars are losing spending power.

The Dollar is currently at 1.40 Euros meaning each USDollar is only worth about $.71 cents in Europe.
The Dollar is currently at 1.60 British Pound Sterling meaning each US DOllar is worth about $.62 cents in the UK.

10 years ago they were about equal. So all in all we have lost about 30% purchasing power over the last decade.

Had you bought a few Gold Eagles for example, at 1oz each. They were selling for $300. 10 years ago and today are worth almost $1500. each today.

So outside of the Doom and gloom SHTF scenario, had you done this you would have earned 5 times your investment by buying these gold coins back then vs the paltry 2-3% paid by banks on Certificates of Deposits which income is also reported to the IRS and are subject to taxes.

Your gold/silver coins are not.

Gold Bullion coins such as the American Eagle, Canadian Maple Leaf and Vienna Philharmonic are guaranteed to be 99% pure gold by the Mints.

American pre '65 silver coinage are 90% Silver AND are still legal US Tender.

The Tungsten filled bars were some of those used by banks for settlements/exchanges between banks and were discovered when assayed between bank transfers which is required.

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I am going to nut if we do indeed fall back to 28 range. I am almost willing to put my life that 28 is the absolute bottom in Silver for long while.

reply to post by JR MacBeth


That was such a money spot. Too bad I don't have the margin to just play any call I would like. If I did that constantly I would be broke. That is for certain. Sometimes you get lucky.

I already stated it, but I am going to actually go out and try to secure some money from outside investors if this happens. I hate to say it looks like it would be risk free from that position @ 28

Originally posted by Dance4Life
reply to post by JR MacBeth

 

That was such a money spot. Too bad I don't have the margin to just play any call I would like. If I did that constantly I would be broke. That is for certain. Sometimes you get lucky.

I already stated it, but I am going to actually go out and try to secure some money from outside investors if this happens. I hate to say it looks like it would be risk free from that position @ 28

edit on 15-3-2011 by Dance4Life because: (no reason given)

$28.00 would be an absolute gift, and while I think it is unlikely, with silver, anything is possible.

At this point, I have continued to resist the urge to grab some options, but if it went that far down, I'm not sure I could resist anymore. Basic funds are liquid, and prepositioned, but I like your idea of perhaps gathering investors.

I actually do it all the time for family, when I encounter physical gold and/or silver deals out there with virtually no downside. My philosophy is that I don't want to leave money sitting on the table. If whatever it is is too much for my current liquid position to absorb, then I include my brothers. They both have regular jobs, and would otherwise never have the chance to make such returns. We split the profits, and I can tell you that it doesn't hurt my feelings at all to take "only" half the profit on something that I didn't need to fork out my own funds on. Plus, if I didn't nab the deal on the spot, the next guy could/would come in behind me. And that DOES hurt my feelings!

SO, your idea of getting investors together has a whole lot of merit IMO. By the way, I only allow my brothers in when the downside is absurdly minimal. I take calculated risks all the time, but when it comes to family, I don't want any trouble!

But from a technical view, silver will be looking like a "no-brainer" if it somehow manages to get down to that mega-support level.

Again, I'm not optimistic, this bull has been a bit "too" orderly. But this disaster is proof that anything can happen. I'm keeping some powder dry just in case. These situations don't come along all that often!

JR

i remember gold at $35.00 oz

never had the money then to invest.

bought gold at $325.00 in 2001.

it will go back up. but you people can bail if you want.

i'll sell at $2500.00


silver, it was stupidly cheap. you guys should make a fortune.

Someone posted in another thread (that I can't currently find) that Gold is a shell game and that TPTB will get people buying gold and then drop its worth.

I didn't think anything of it and then started watching TV. I have a job where Fox News is on a lot of the time on a TV. There are at least 3 or 4 commercials every hour from at least 3 different gold companies urging people to buy gold. G Gordon Liddy is a spokesman for one of them (yes that G Gordon Liddy.) Nothing says trustworthy like a former Watergate plumber.

Originally posted by coyotepoet
Someone posted in another thread (that I can't currently find) that Gold is a shell game and that TPTB will get people buying gold and then drop its worth.

I didn't think anything of it and then started watching TV. I have a job where Fox News is on a lot of the time on a TV. There are at least 3 or 4 commercials every hour from at least 3 different gold companies urging people to buy gold. G Gordon Liddy is a spokesman for one of them (yes that G Gordon Liddy.) Nothing says trustworthy like a former Watergate plumber.

Unfortunately, you can't see the truth like majority out there.

The AntiChrist system is in progress to restore world's currency to gold and silver. AntiChrist and his elites are now shifting wealth from United States to Israel. When Jesus descend to earth, he sees gold everywhere on the street (gold standard).

The entire plan is being explained in the Bible and Quran.