I really don't know. I am such a sucker for watching the spot price of both Gold/Silver. Bad habit, I know.
Gerald Celente reckons banks and govts won't let gold much past $2000/oz. He reckons they'll peg it to something, just like they're doing with the swiss franc and the euro right about now!
Well I'll still be happy at 2g, just hope I get more exposure before then. As long as it's pegged at that and can't fall lower.
The stock market is copping a hit over in the US atm. I wonder if they'll say it was profit taking Edit: Oh, and probably some investors running back to commodities while the above happens.
They still have military power. The last line of measures that they can take. Practically, at this point they can give the finger to everyone (debt wise) and no one, even China would do a damn thing except public condemnation etc. Uncle sam still the mightiest bully around. Give it another decade then maybe balance of power shifted. But a word of warning, China is not going to be nicer than usa as a superpower.
Its just a backwards system they're given a downgrade which causes people to flee USD and buy gold which causes gold to surge, yet even though people are dumping the USD its risen 5 - 10 percent against other currencies. Its frustrating how rigged the world is.
$1830 This shit's getting real.... ya know......like more... than the more before... like... ahh fk it
I'd hardly consider myself an economic guru, but following the US credit downgrade, the prices of US Treasury bonds (ironically the very instrument that was downgraded) have INCREASED in price/lowered in yield, reflecting the consideration that they are also still considered a safe haven. These are of course denominated in USD, hence it would rise. There's an interesting tug of war going on here, where both PMs and Treasuries are increasing in price. They both can't be correct: purchasers of Treasuries would profit from a decrease in monetary supply, which is happening now in USD due to deleveraging, as currency is destoyed while loans are paid off - essentially placing a bet on deflation. Gold is the opposite, it is a bet on inflation, essentially that central banks will crank the printing presses into overdrive to prevent deflation (which they will, as deflation increases the value of debt). I know what side of the fence that I would like to sit on. ^Of course, the above might just be a load of uneducated crap though
can someone explain in layman term how things works with PM derivatives and how COMEX manipulates PM prices by 'raising the margin' and forcing a sellout? my knowledge with futures/contracts etc is very fragmental, thanks in advance!
A shiney Bar costs $10k A man with alot of bars says... hey!.. i'll let you put a sticker on that bar with your name on it, and in 30 days i'll buy the bar back off you. (and you'll make the difference on what that bar is worth). Lets kick it off.... but i need you to put down $1k for the sticker... cool? You have $5k, so you have enough to put 5 stickers on some of his bars. (In this way you are leveraging your purchasing power).... you just used $5k to put stickers $50k of bars! fk yeah! thats awesome. Then comes a margin hike... the dude with the bars wants $2k per sticker... you'll need to do it by wednesday. ahhhh fk... you fker... now i have to sell some of my bars to cover that sticker.... fkr. get it? So why have margins? well really... just look at it as a % of the fiat value of that bar. Things would be explosive without these margins. So they are needed to avert self-induced compounding leverage runaway. big words... but back to the example... if gold goes to $100k a bar... your $5k now puts stickers on $500k of gold. Thats some scary shit right there. A small % change will wipe you out. so yea, look at it as a %, and it all makes sense to continually adjust margins. Where the manipulation can come, is >knowledge< timing of these changes, which is decided buy a bunch of 'dudes' who do coke n hookers with the bar dudes.... (in the example) (ofcourse) edit: keep an eye on % calculations: http://www.bullionbaron.com/2011/03/cme-hikes-silver-margin-requirements.html
