Marc Faber seems to think gold and silver will go down for the next 3 months or so. http://www.bloomberg.com/video/71299760/ 3:25 onwards
Hmmm shame he didn't say a percentage of dollar figure...but he then says not to short Gold/Silver? I can only guess his 3 month drop is a low figure otherwise would suggest short PM's.. BBQ - Cheers for the link
Way off topic and from fantasy land: In financial crisis your paper money becomes just paper in zombie apocalypse all your metals are just paper weight For now, I am hoping no zombie apocalypse
A localised food crisis would mean metals would not be redeemable for the one thing you would want/need most. There needn't be a Zombieland scenario for this to be the case. Such a situation could be quite temporary and yet devastating. I don't think this situation is particularly likely, but it's considerably more likely than Dawn of the Dead.
Thankfully the australian farmers have enough food to support population of 60 million Read about it in the age some time ago. Assuming no natural disaster that wipes all crops, we will not have to resort to cannibalism
Yes,but where is it grown and will transport and distribution be available to big cities. No fuel,no food.
I spent a another late night reading up about the end of QE2 and looks like most gurus are predicting a fall in the market including precious metals until QE3 is announced. Schiff is saying without some sort of QE3 the banks will fail as its only been the QEs keeping them going - that is a scarey thought! I'm glad I'm not Bernanke, he does look like a worried man! Marc Faber reckons 3 months low pms. I cannot see it going on for that long myself but he must then think they will rise again. With everyone expecting a fall this time maybe it wont be as severe as last time but there is a trend downwards at the moment. Maybe our dollar will fall to compensate These are crazy times and I suppose anything is possible but I am in this for the long haul so a significant drop in price I will be buying.
Why a correction is coming in precious metals? Since QE started billions of dollars have flooded all markets. Dollars that may not be in these markets for fundamental reasons. With the Fed buying gov't bonds at far too low rates, this will naturally push the cash that would have gone into the "safer"(cough) treasury bonds to the right on the risk curve looking for the yield they want - pushing that cash to the right and so on until everything including micro caps gets pushed up in price. Now while I personally feel Silver should be sitting between $300-600 an ounce and gold somewhere between $5000-$6000 dollars an ounce, the fact of the matter remains that all the big money is on the punt right now in one market or another. We have 2 more days until QE2 Finishes and it looks like the US congress is no where near ready for a deal on the debt ceiling. So if QE3 is to start where is Helicopter Ben going to throw those dollars? My uneducated guess is he wont throw them anywhere. We are already seeing markets all over start to tank and QE2 isn't even dead yet. When it does end and there is no QE3 announced and the debt ceiling isn't raised, it may only get worse. Obama wont mind this IMHO as this will put huge huge pressure on congress to raise the debt ceiling even if Obama doesn't agree to all the terms..... It may put them in the spot light as the ones halting the "recovery' (snort) and causing the reversing of "all the hard work"(spit). So this is where I see the correction coming from in the near future. It may even be quite sharp but this scenario will set the stage for QE3 to be massive, long and hugely inflationary. It may be the last true big dip and awesome buying opportunity before the Precious Metal bull has a fire lit under it's ass for the big run up...... Anyone like to comment on my thoughts feel free Cheers Chris
Agree Lovey - I think Bernanke will want to put pressure on everything first so that he is 'forced' into a QE3 which may mean big losses on the stockmarket first and everyone begging for a QE3 before he acts! Agree - this may be our last chance at a low silver price before a QE3
Exactly, if QE continues with out a break markets will probably just run sideways for a long time or even edging upwards but with no real direction. But at the same time inflation will start the wolves at the door for him and his thieving board members to stop because it is hurting the lower and middle classes. BUT if it stops for a month or two and everything plummets then he will have all the ammunition on the world to blast both barrels at the market and continue to do so until it implodes just like all the rest of them (Germany/Zimbabwe). Remember that America just like the rest of the socialist world is full of zombies that feed off the government far more than they give it, so the pressure will be on for the imbeciles to "Do Something". Right around then is back the truck up time for stackers of both metals. We may even see sub $20 Physical prices for a short period (with a wait time most likely but still a good time to order). Cheers Chris
...so have all the short term bears sold all there stack? you could sell today at spot and buy back in at $20? seems a good deal to me? almost double your stack for no/little risk?
+1000 And if S Really HTF many will be giving up plenty to the real life sheep dogs as the Wolves won't be looking for Government handouts at Centrelink!
Nope no chance! I don't have a Crystal ball but I was just answering the question stated on why I felt there was a "Correction" coming. I am exposed enough so that if I am wrong completely, then I will have enough Insurance to get by. I hope that no one is putting all their eggs in the PM basket? Cheers Chris
