This is something that I feel needs consideration, it's my summary over the silver market for the next two weeks. Silver at Fridays close was $37 dollars an oz. On may 1st of this year it reached around $48 then dropped to the low 30's over a 4 day period. The reason why it dropped was because of price manipulation, they effectively dropped a paper bomb on the market, several thousand contracts were dumped causing the price to plunge 13% percent in the space of 15 minutes That's a fact you can read the details in this report. http://www.bullionmark.com.au/gold-...per-Monopoly-Over-Silver-Price-Discovery.html What I feel will happen is that all the fear about defaults will be quelled due to the talk of more bail outs for Greece and the American dept ceiling will be quelled by the fact that they have sorted it out by adding more loans and there for making their interest payment demands, this will cause people to get out of the safe haven of precious metals and cause the prices to drop and since it is in the banks best interest to keep the price of silver as low as possible I can see them dropping another paper bomb on the silver market to crash it below the 30 dollar floor but this won't happen till after the second of august. So from now till then silver will creep up and then crash, which will be the time to buy bullion not paper silver. China has had a silver economy for the last six thousand years, it's only since 1935 that they were forced off it by the Americans. China at the moment has just added a new precious metal exchange that is set to challenge the comex. The Chinese government has been buying the stuff at a great rate of knots and has instructed it's people to buy silver and gold and have also set up gold bullion savings banks. Silver as a monetary system is imbedded in the DNA of the Chinese people. Think about all those peasant coins stuffed under the mattress all across China. The best thing for Greece to do is to default and leave the EU and kick out the banks and take on the model that the Icelandic government has adopted which by the way is the way they were before they were raped and pillaged by the bankters. Since then they are on the way to recovery with manageable debt them and are back on track as being the most developed country in the world, with a people friendly banking system and government. The next week is a confidence trick, because the only thing that backs our monetary system is confidence and once that's gone the gig is up! On our way to a gold standard, maybe. Maybe that's what they wanted all along, a gold standard won't help us if all the banks hold the gold but what will help us is a gold/silver standard. What your watching now is the legal theft of Greece's gold 110 tonnes by securitizing there countries assets as part of the deal in the new bail out, but that's small bickies compared to the real target of Italy's Gold 2400 tonnes! My question is, is this a fair summation as to what's going on? Thankyou.
The silver price dropped because margins were raised. There is only so much that they can raise the margins until it becomes 100%. Likewise if the POS was to drop or plummet, I was of the belief that margins would/could be lowered. Margins were placed on the price to keep the POS at a steady rise rather than allow it to burst through the $50 mark. IMO the POG/POS will remain to increase steadily.....there was a report prior to May (sorry I do not remember who) that said $90 would be preferred by December as this would show a steady incline to the POS. If the POS goes parabolic, that is when you should worry. I do not know the significance of August but I think if the POS drops below $30 than margins could actually be lowered to stabilise the price and re-invigorate the paper buyers.....but I do not think this will happen. More debt in the world = Increasing POS/POG
I am a very firm believer in the manipulation of the market, which was definitely a factor in the take down from $50, but the simple answer is it just got too crowded and ahead of itself. I highly respect Bill Murphy and his work at GATA. ( A great deal in fact, and is a principle reason for me getting in the metals). But what I do not like is it seems to be that from him and a few bloggers and 'silver liberation army'. That any time silver even slightly pulls back it is manipulation. Even with the manipulation, silver is still subject to short term bubbles and is influenced by supply/demand. if the manipulation is as bad as they say it is ( which I believe), i am somewhat thankful for the takedowns, it stops the price from exploding and then sharply correcting. Slow and steady is far healthier for a market and our sanity. Slow and steady (def) - around $1-$2 a day until euphoria is 65.
I think you have summed it up very well. Dont forget the Indian market - they also love silver and gold and will buy up whenever the price dips. Personaly I can't see the silver price getting below $30 again. I think the pm price may dip soon after Obama and the senate agree on a plan to reduce debt and raise the debt ceiling (thats ironic in itself!), but I believe the dip will be short lived as QE3 takes off (in one form or another) and gold and silver rise again. Of course , if no agreement is reached then the US will default and the price of pms may not dip but rise exponentially! Then because of default the US dollar rating is down graded then a lot of funds that currently invest in US dollars will be forced to put their money somewhere else, this could signal the end of the US dollar as the reserve currency and all hell will break loose. PMs could sky rocket! But I am sure an agreement will be reached in the next couple of days.
There are no free markets anymore. Just interventions. If the news is bad it is actually good (more QE and pumping). I have given up fundamentals on the market now.
I think this is about it - at least to my newbie way of looking at things. In the long term, a debt ceiling agreement may be a worse thing than defaulting now... simply because the eventual default will be much larger. One has to think it must happen at some point - the USA will not raise enough funds to pay the interest on it's debts at some point, which practically means they MUST default then.
there are a couple of Max Keiser vids on youtube that come to the same conclusion re greece and italy... financial terrorism at work Like any bull ride, you've gotta hold the reigns tight and ride the bumps welcome to the ride of your life Toto... strap your self in because "l dont think we are in Kansas anymore"
How can you have a free market and media when two assumptions remain unchallenged from the debate? 1. The US government must give themselves permission to borrow more money to retain the "full faith and credit" of the USA. 2. Truly "balanced budget" - would be an economic disaster. In a sound and free economic and financial world, market reaction to raise the debt limit would be far worse than the reaction to refusal to allow such a step. Is this something so hard to comprehend? Where are those mainstream economists who will tell us that as long as these assumptions remain, no solution to the problem is possible? We are living in a very corrupt world today and sooner this system collapse better it will be to our children.
There's gotta be an Undo button somewhere for this world wide economy *hits F5 instead* By taking their sweet time pretending to debate over the debt ceiling, they manipulated the POS and POG upwards. Now that the drama is coming to an end for this season, it will send the POS and POG downwards. It's all part of the plan. Oh yea, these are GFC2 days. Expect any upwards movements on shares to be short lived. It's generally downhill from here... or bust!
Wow thanks for the reply's everybody, I wrote that pretty fast as I had to go to work. I'm new to silver stacking and stumbled into this by mistake, I was doing a google search for a stainless steel armature for stop motion animation and I hit a wrong link and fell into this huge fucking rabbit hole about two months ago, I was sleeping about 4 hours night and sleeping in my meal break at work, the rest of the available time was spent down the hole. Max Keiser and Stacy Herbert have opened my eyes to financial news reporting and the news in general I love there channel and it's a great spring board to follow up leads on. The doco "The secret of OZ" was an other inspiring piece of work that has changed my out look on money, damb it it's changed my life not just my out look on money, this feels like a missing piece to a big gaping hole that I've felt for a long time. It's not that I didn't respect money I had no idea what money was just this vague something out there thing that I could never get enough or save. I've managed to crawl out of the rabbit hole now with about 4 and a half k's of the shinny stuff, and this is my bank and it's in my vault and I own the key and for the first time in my life I feel like I am getting somewhere I feel like I have money, it's not because of the potential of it, I think it's the physical aspect of it, $5000 worth of silver buried in your back yard feels tangible something reel as opposed to credits on a screen. I also love the fact that in reality it's not mine, I'm holding till I chose to sell and transfer the energy of it into something tangible for me to use but the metal itself stays the same it just gets infused with the buyers property rights until he chooses to sell it and so on and so on, that kilo coin will be around for a long long time and should pass through many hands over the next couple of hundred years. Could you imagine the value of a perth mint kilo lunar coin in the year of the second great depression fifty years after the fact? Thats my sons super. Oh, just as an aside to this, my family and friends thinks I'm nuts, yes you are right Dorthy this ain't Kansas, arf!
yeah, i think we've all been through what you just described at some point. an understanding of these things certainly alters the lens through which you perceive the universe.
My god! Number 5 is alive! "More input . . . " [youtube]http://www.youtube.com/watch?v=4TBcQ8h_kXU[/youtube] Warning - Unsolicited advice follows Just remember to "suspend belief" for normal day living. You might want to save everyone you know and explain that you've realised why the world makes no sense and that it all comes down to the nature of money and did you know that the RBA printed 10% more currency last year to keep inflation high and that has just watered down the value of your savings and that this money is printed from nothing without any physical backing and they could print up as much money as they needed for any project they needed if they truly wanted to and . . . but remember that people who don't want saving don't appreciate the effort. You may find holding a compassionate view of those trapped within the popular belief system of big government, central financial planning and fiat currencies will go along way to keeping you balanced. Oh, and it is not wise to tell others you are stacking precious metals and especially about holding them at home. You may do so out of a sense of good will and "lead by example" type of thinking, but with 6 degrees of seperation you do not know who will find out and how important that will become in the future.
I'm watching 'The Sectret of Oz' now on youtube. It would seem that the federal reserve is good in theory because it doesn't allow the US to print money without consequence -> They have to pay the interest, otherwise it would be free-printing, is this right? He doesn't like gold and silver thus far... And seems all for printing! Further question, if the US borrows all of its currency into existence, and pays interest on that money, then inflating the debt away won't work will it, because the amount of money created to reduce the debt will be countered by the interest.... I guess that is why interest rates have to stay at virtually 0 for the scheme to continue.
I know where you are coming from! - I have been down that rabbit hole for a couple of months now (also got there by accident!) and it is indeed an eye opener and life changer - I notice though that people are starting to avoid me now when I carry on about the US dollar, gold, silver etc - it seems I have joined the 'nutty' brigade!
