No, if and when they recover, then debt issue should have gone away and share market and any other equity market can start making their recovery. By then, there is no need for safe haven and certain items such as properties might have deflated in value. Therefore in my opinion, PM will return to their production value + extra demand. For gold, production cost is between 1200-1400 at the moment and for silver still in the $12-$15. When will this happen .... if I know I am not human.
Don't have to be out of debt. As long as they no longer have to cut spending here and there and there is no more talk of default and they regain AAA rating, that is a good sign of recovery.
That sounds very reasonable - don't worry too much about silver price going up and down in the short term, just think about long term. It will be many years before the debt crisis in Europe and the USA is sorted out and I'm sure silver will be over $100 an ounce before then!
I have purchased some over the weekend. I don't buy every month, and my last purchase was back at $35/oz. I bought because I had some excess fiat laying around after some stock purchases. Bought some stuff here from a couple of members and some 10oz bars from a dealer. I even convinced my work colleague to buy a 10oz bar! I have convinced someone! After working in the same office with just the 2 of us for almost 5 months....
And I just purchased 2 twenty oz bars from PM. Tgether we have managed to put the mockers on AUD50 an oz - AUD5 per oz here we come!!!
Don't bet on it tanking, BTFD BTFD BTFD Bernanke already promised 0 interest rates out to 2013, and 0 interest rates have done squat so far, the only thing he has left is the big red QE3 button, and you know what happens if he pushes it. Otherwise, one of the only other things that can make it tank is direct manipulation, but no-one can predict that. Any manipulation will only be temporary anyway, it will pop afterwards as it did last time. cheers
If you think we've seen a GFC...you aint seen nothin' yet! The $US is dead in the water! The only recovery the US has any hope of is by way of a revolution - arresting the Banksters and abolishing the (private) Federal Reserve. The current US answer to paying it's impossible debt is to print more money: http://www.infowars.com/greenspan-counterfeit-fiat-dollars-to-avoid-default/ This obviously translates into inflation. The real GFC is when the US currency looses its World Reserve Status!
Yes there is some truth to what you said. However after searching the net for all available information, there are many things that people who bet against USA forgot to disclose: Variable of power, USA still the most powerful military force in the world. So, even if they default and refuse to pay creditors or give them the finger, no creditor will take action, even China. Might change in a decade or so. USA taxed too little, the tax cuts are still in effect and they have not raised their taxes. If they can raise their tax, then the debt problem is not so imposing. Precious Metals are way above production cost(Gold ~USD1200, Silver ~USD 15). What drives the current price and supports it there: Fear. China's 3 trillion dollars deficit can do squat to help USA. In global sense, 3 trillion dollars can't solve the current problem. China Depends on USA and Eurozone to keep consuming. If USA and Eurozone enters a period of frugality, China's economy will be affected. Reverting back to gold standard right at this point when debt is high is suicidal. From an economical perspective, Deflation is feared more than inflation, so the QE did its job by introducing forced inflation and liquidity into the economy.
I think people are betting on a financial meltdown, not America completely failing and turning in to an obscure country. Giving the finger = financial meltdown. I'm more than certain the American's will come up with something, just like the Germans did and fix their economy - but not before a meltdown.
Meltdown possible. But they are not sitting on their bottom and doing nothing. Whether their action fixes or makes things worse is another matter.
Guys, have you not seen they are predicting The Bank Of America will collapse within the next 6 weeks? If it happens silver will be $75 within a week after.
All it will take is recession for silver to be dumped. http://www.bloomberg.com/apps/quote?ticker=CBAC1U5:IND Quite a large spike again in BOA CDS's so obviously there's allot more going on behind the scenes. but by the same token Goldman CDS's are not much better after a large spike today.. http://www.bloomberg.com/apps/quote?ticker=CGS1U5:IND
The current 'system' put those currently in control where they are now. Just look at Wayne Swan as an example. A guy who you wouldn't trust to pump fuel into your car has been put into (arguably) the most influential role in the nation by the current 'system'. He's not going to want to change the system that put HIM there. Let's use 'the party' analogy. He's not going to want this party to end because when the music stops he knows he's got nothing in the tank. He's going to milk it for as long as he can. Even if the curtains catch fire, he'll be the one telling everyone "It's all cool nothing to worry about..everybody keep dancing". It's not just him, it's everyone like him. Everything HAS to fall apart before we can move on. The house has to burn down and party has to end. Those in 'control' will do the Iraqi defense minister thing "There are no Americans in Bagdad" meanwhile over his shoulder you can see tanks knocking down statues and Marines slapping each other on the backs and giving the 'peace' sign to Iraqi TV. The Police that keep the riots supressed and Beureacrats that keep the lies flowing will be the best paid jobs in the country. The PM will stand in front of cameras saying "everything's fine, if we just keep doing what we've always done, things will pick up". They'll buy the votes of the increasing ranks of the poor with pathetic crumb handouts (which to a poor person will look like a kings ransom). Or people can get politically motivated, create or join community groups and kick them out before it all goes to plop!
