Are Metals Melting?

Wow, lots of red today. Here's my latest Seeking Alpha contribution with my amateur look at where metals may go if we are on the brink of another 2008.

http://seekingalpha.com/article/676081-are-metals-due-for-a-meltdown

 

Thanks for another good article Derrick!

 

At various times earlier this year both Jim Rogers and Marc Farber talked about the latter part of 2012 making the 2008 GFC meltdown look like a kids' picnic.

I reckon it will play out after the Obama vs Romney November elections (where they will try their hardest to paint a rosy economic picture) but after the results are in and regardless of whether it's the donkey or elephant in the White House the real picture will emerge.

Hang on to your hats, folks (and keep stackin').

 

Thanks for checking it out!

 

I hope that is an understatement, but I do foresee some rough times. Will be good for those wanting to build a bigger base, but will be rough for those with sizable stacks already that may need to liquidate in a near-term. Other analysis I've seen has suggested 2013 will produce strong runs in metals. I guess we will see!

 

cheap snakes acomin'

 

That would be awesome, but I have the feeling those will carry a hefty premium again.

 

I think once you've been around a while you get used to the PM market (especially silver) being schizophrenic by nature.

The day to day volatility just creates more buy opportunities, but the long term position has a pretty predictable outcome.

This is just the nature of the beast.

 

Thanks for the article but it is about gold in USD and the charts are in American dollars.
However,the AUD fell dramatically over 2008 and the chart of gold and silver would look completely different in AUD.Most of the forum is Australian and this is of great interest to them.Aud went from 95cUS to 65c us in 2008.

Would expect the AUD to collapse as the stockmarket does,it being a resource driven country,its currency a proxy for risk(most gambled in the world) and with the worlds most expensive housing market.
[imgz=http://forums.silverstackers.com/uploads/35_year-5-chart.png][/imgz]

http://www.dailyreckoning.com.au/gold-the-aussie-dollar-the-greenback-and-you/2009/02/03/

"2) Phase 2 from March 2008 to September 2008 where the "Aussie gold" was cheaper as gold in USD was correcting while the local currency jumped to historical highs until July, then crashed"

In Oct 2008 when gold was hitting the bottom in USD ,it was dramatically rising in AUD(due to fall in AUD).

 

I think once you've been around a while you get used to the debating on SS being schizophrenic by nature.

The day to day volatility just creates more trolling opportunities, but the long term position has a pretty predictable outcome.

This is just the nature of the beast.

 

Who is a troll?

 

Valid points, Peter. On a side, I simply wanted to share because I know there is a growing base of US forum members, and because I thought it would be a discussion starter either way. I'm not involved in currencies enough to comment on how the fluctuations of others, like the AUD, will impact the price. Regardless, globally I think there are going to be some interesting times ahead. Thanks for sharing the chart and link.

 

Certainly its good to get a perspective from all over the world.
We need all the thoughtful help we can get.

However , its easy to think that predictions about the direction of the price of gold and silver refer to gold and silver in all currencies,when the price could go in opposite directions in different countries.I find myself doing this.
Thanks for the article.