posted on May, 6 2011 @ 10:12 AM
Originally posted by MamaJ
reply to post by redgreen
I hate to say it but I am SO NAIVE when it comes to market/dollar/silver/gold and so on. Will you please tell me more as to why silver tanked? I am
educated on a lot...but not this topic and it makes me feel so powerless in regards with todays economy as I have only recently begun educating myself
on this topic.
Thank you in advance for the insight. ;-)
Well here's the 'hear say'
With America tanking and people are looking away from the dollar, precious metals gain popularity as a currency.
So with the people thinking that America is going to tank they start to buy silver and gold pushing it prices up. Apparently a Chinese Billionaire
started buying up silver which was when it was on its way up.
So investors tell people to stock up on silver when its climbing but heres the catch, while everyone is riding the silver bubble like the housing
market eventually its is going to tank also....
So when someone decides to sell off alot of silver other people follow suit and eventually the price crashes making bankers alot of money if they
started the fad and you lose out because your not on the inside.
heres the break down
Investment bankers start buying silver at $40 an oz
People start buying it shortly after for $45-$50 an oz
Silver hits $50 an oz and the bankers are making a 1/5 on it they will start to sell rapidly dumping silver into the market crashing the price back to
$30 an oz.
So while its crashing the normal people start selling off also but some are caught out and lose alot of money because they get greedy or dont see the
signs of newtons law , what goes up MUST come down.
Remember the rise of silver happened when the American stock market was open but when it closed for the easter , China's stock exhange opened first
and they got first refusal to tank the price of silver making them alot of money before the American public who invested in silver got to sell it
TLDR, China trying to tank America again.