Warning: The coming washout in Gold and Silver is likely imminent.

I predict that a washout in gold and silver below multi year lows (1520+ in Gold and 26.20~ in Silver)is imminent. There has been an all out push by some of the gold bullion and miners newsletters recently to buy here above support and to stem the tide of selling....but it has done little to turn the market (just a normal bounce off of support levels)....which is a negative sign (as is the stock market making higher highs and neutralizing the crash hedge argument). Eventually the selling will chew thru support and we will get a huge washout to the downside that will especially weigh on those in the market on margin (ie futures). The Gold ETFs will exacerbate it as investors who own gold via these vehicles sell and that in turn forces the funds to sell underlying bullion which forces prices even lower. I would not be surprised to see TPTB (using the big banks and "plunge protection team") force the metals thru these support levels triggering psychological and real margin selling. In fact, if the Chinese are masters of deceit then they might even come to market and sell enough also (as well as getting the press headline) to get the price thru support levels so that they can buy it at lower prices later.

reply to post by CosmicCitizen


Thanks for the tip. I was going to start buying some gold bullion bars, as interest rates in the u.k. are very poor.
I was intending to wait for a price drop anyway, but I'lll sit things out for the potential big fall....

reply to post by CosmicCitizen


I was thinking of investing in precious metals, with the way the economy is going right now, but if you're right, then I don't really know what to do now.

I don't tend to watch Gold as I think it is useless unless you have a lot of money and a lot of time or want to just hold some, precious metals can get volatile fast.

But I had noticed it dropped a $100 or so in past month. Actually with all the buying going on the market for it has to tank at some point and its about time...

reply to post by CosmicCitizen


The lower silver goes means the more I can buy. Silver is the most undervalued item in the history of the world right now. The gold and silver markets are HEAVILY manipulated by the institutional investors and world governments, but soon they will no longer be able to manipulate the markets because right now there is a massive shortage of physical silver, and those large paper contracts will come calling to take delivery and there will be nothing to deliver, and then the COMEX will default and CRASH. The paper markets GLD and SLV are the reason the spot prices are so low because of options trading by the TBTF banks. They have massive shorts to cover, and when they are all covered they will switch to the long side of the trade and the price of gold and silver will blow past the moon. Investing in physical gold and silver takes a lot of patience and guts, especially silver. Right now TPTB are trying to scare away the small time physical investors by manipulating the prices, but those who ignore the spot price today and carry on will be glad that they did, and it will pay off big time. I buy silver at any price, I could care less what the price is because it isn't real. There is no price discovery whatsoever between the paper markets and the physical markets, and GLD and SLV will soon go off the cliff, and those that hold the actual physical asset will reap the rewards, while those invested in paper will burn in the wreckage.

reply to post by FollowTheWhiteRabbit


Sit it out for a decent fall in precious metal prices. Then it will only take some more economic
doom and gloom for everyone to start buying again.

I would point out that I'm not a qualified financial adviser !

and when it drops I will be laughing at all the idiots who put their savings into a worthless metal that like the dollar is easily manipulated.

invest in hard good, you cant eat gold/silver.. if there is any type of collapse good luck trading it for food the way everyone thinks. Who would trade food for a worthless metal that there will be plenty of, they will not starve for your worthless trinkets.

buy guns, ammo, bulk long term storage food, buy seeds, buy bows, arrows, crossbow, bolts, survival gear, ect.. Things that you could actually trade for or even use to get your own food. Invest in a garden it will be priceless compared to gold.

If you want to get laid, invest in makeup and feminism products. When the SHTF all these girls will do anything that those luxury items

reply to post by CosmicCitizen


I get a couple of newsletters that normally give signals of when to buy and sell gold and silver and they have all been wrong recently, so you may be right about this. The most recent buy signal was just above the $27 mark because they said the support at $27 was too great to be broken. Well last week we fell below the $27 mark for a couple of days which proves that the support levels are weaker than expected. I will be waiting to make any more metals purchases to see where this goes from here.

My father was a jeweler and I remember back in the 80's when gold prices skyrocketed.
We used to go every day and sell our scrap gold.

And over the years there's always fluctuations in high in low prices.



So I wouldn't be surprised to see gold tank.
But if it does. Start buying because in a few years it will go up again,.

I'm positive it will be back below $1000 by this time next year and bounce between $750 and $1000 for a year or two. Then it's either down down down or up up up.

I wouldn't buy ANYTHING right now. Feed yourselves and your families. Greed is not going to work out for anyone the next while.

reply to post by OptimusSubprime


Yes! Excellent post. There is a real shortage of the physical metals, which you couldn't tell by the paper prices. But just try and buy gold or silver at the paper prices!

Silver and gold, along with platinum and palladium, are "fixed" by 5 guys in London. Silver only once a day, the other metals, twice a day. Pure insanity in this day and age!

The London gold fixing or gold fix is the procedure by which the price of gold is determined twice each business day on the London market by the five members of The London Gold Market Fixing Ltd, on the premises of N M Rothschild & Sons. It is designed to fix a price for settling contracts between members of the London bullion market, but informally the gold fixing provides a recognized rate that is used as a benchmark for pricing the majority of gold products and derivatives throughout the world's markets. The gold fix is conducted in United States dollars (US$), Pound sterling (GBP), and the euro (€) daily at 10.30am and 3pm, London time, via a dedicated telephone conference facility.

en.wikipedia.org...

www.cnbc.com...

silverdoctors.com...

Market pressures seem to have little to do with this manipulation, and often, the volume is quite low. It's all a game of smoke and mirrors, courtesy of the Rothschild dynasty.

Originally posted by Atlantican
I'm positive it will be back below $1000 by this time next year and bounce between $750 and $1000 for a year or two. Then it's either down down down or up up up.

I wouldn't buy ANYTHING right now. Feed yourselves and your families. Greed is not going to work out for anyone the next while.

With all central banks in the world printing money to fund there debts, I'm Positive gold and silver will only be going up. yes there low points, there is in all markets. all it means is you can buy more for cheaper.

i am glad to see the pullback... i and a few financial gurus say that physical gold from the Earth will be nearer to $1440.oo than to $1520.oo before the COMEX gets found out for the fraud it is....

the BRIiiCS are stacking up gold, presumably more than what was once in Ft Knox (some 8,000 tonnes)
the BRIiiCS Infrastructure Bank is fixing to make the London-NY-DC Anglo-American financial system both obsolete, broke, Insolvent and a 3rd world casino operation


...so i will continue to Dollar-Cost-Average my purchases of major Gold Mining stocks, probably until mid 2014
(at which time the Administration will seize IRAs/ROTH Accts that are valued at more than $250k and require that 40-50% of the funds be registered US Treasuries of the remainder wealth you are allowed to possess)



as far as Silver... i have been purchasing physical silver in both coin and ingot for 5 months now... even though the 'Premium' above spot is rather high...

it makes no sense at all that demand is overwhelming, the physical supply very short...for Silver to be declining in price (the US Mint halted production of Silver Eagles AND Apple Inc delayed the ipod production due to lack of silver supplies)
both gold and silver bullion in its' many forms are commanding higher-&-higher'Premiums' Above-Spot because the market is reluctant to part with their Physical Metals no matter the present price


as we get past the $25 silver and $1500 gold supports... i will adjust my purchases with the view that i will want two years property taxes in silver and as many mining stocks as i can get before the price nears $1440 USD
or around $1100 Euro because by then i will need to have the 'excape or elude the IRS plan in place before my USA based custodial accounts are seized...


keep your eyes open....

reply to post by St Udio


The mining stocks have taken quite a beating! They're priced as if gold were around $950 per ounce, which makes no sense.....of course, looking for logic in the stock market casino is like hunting for the Holy Grail. It's supposed to be there somewhere, but darned if people can find it!

reply to post by FissionSurplus


quite right...
the gold &/or silver prices are not the result of Markets or market forces


the speculators, the Fed, the PPT, the ETFs are all conspiring to dis gold/silver/PM so that the US Dollar has support.... in fact the USD index is over 82 is it not... when in all practicle terms the USD should be really nearer to 75 and going much lower... sooner than later


if the Fed Resrve forces lose their power over pricing gold & PMs then its all over for the dollar

thats why the BRIiiCS are creating the trading Bank which will have a gold standard monetary unit to overtake the present London-NY Central Bank cartel, the Fed, the IMF. the world bank, the petro-dollar with the Saudi support (for now) and the whole trade system of payments will change with western empires' demise

If there is a massive dip in gold/silver, you could take that as a warning sign that a currency is about to crash. The price will be driven down so 'they' can buy their gold dirt cheap and gold/silver always rises when a big currency is looking dodgy, so the price will rocket back up and those in the know will have made a huge profit.

you can't eat silver, but you also can't kill vampires ( haha BANKERS if you don't know) with paper
I'd say balance is the key

look at the long term history of paper...and the long term history of real money ( of which also barter is related)
simple

reply to post by FollowTheWhiteRabbit

You could nibble at the market here as a hedge in the event that this multi year low holds and keep some dry powder for the washout. Some dealers wont answer their phones tho at the low (ie 2008) as they wont want to sell their inventory at rock bottom prices where gold and silver might be $70 & $2/oz lower than the day before.....

reply to post by Idonthaveabeard

On a big washout caused by the "paper" derivatives of bullion (ie, futures and options) then one could expect that premiums for physical over spot to increase....like they did into the 2008 lows (but since there will be people dumping physical silver accumulated over the last few years I dont expect to see premiums near the levels of the last low).

reply to post by St Udio

The USD may be headed for the 89 area and that will also weigh heavily on gold and silver prices in the interim.