I have been anticipating this move for quite a while. I think the war between U.S. and N.K will spark metal price to head north. http://www.bbc.com/news/world-asia-39600426 I just want to know if silver stackers are paying attention to this. If a war happens this year, how high do you think metal price will head?
There will likely be an uptick but how much is not known and is conditional upon other factors potentially playing out or not (which can not be known at this point). In other words, no one really knows the answer.
In a nutshell - governments have to rip-off the populace with taxes to pay for the war effort. That's why it's popular to conceal wealth from view by holding more PM's. The severity of the war is a factor which may determine how much more PM people hold.
It will depend on numerous factors including which nations are involved with a war and exactly what sort of war it will be (not all wars are the same). .
http://www.kitco.com/news/2017-04-1...o-Longer-Main-Drivers-Of-Gold-Prices-RBC.html Geopolitical events no longer have the same kind of pull on gold prices as in the past, instead macroeconomics are the dominate driver, this according to a recent RBC report. As gold prices rallied earlier this week on continued geopolitical tensions in North Korea and Syria, RBC examined a historical link between major geopolitical events and rising gold prices, stating that the impact on the metal has been waning over the years. “More recently, geopolitical shocks appear to have had much less of an impact on gold, for example in 2015 when we did not see any short-term impact around the Greek debt crisis referendum or Paris attacks,” the report said. “Macroeconomic backdrop appears to have become a greater driver of the gold price than geopolitical events in recent years.” The biggest difference between the past and the present is the long-term impact of geopolitical events on the yellow metal. RBC examined gold price movements following major geopolitical events from 1970 to 2017; including Richard Nixon’s resignation, the Iranian hostage crisis, Friday the 13th crash, Gorbachev coup, September 11th attacks, Iraq War, Boston Marathon Bombing, Greek Referendum announcement, Brexit, Trump becoming President, and the most recent, U.S. missile strike in Syria along with heightened North Korea tensions. According to the data, following major global instabilities between 1970-1993, gold prices would rise on average 1% one week after the event, 5% a month after, 12% two months after, and 16% three months after that. That ratio drops between 2001 and 2005, with gold rising 1% after the first week of the event, 2% after one month, 3% after two months and 4% after three months, the report showed. And since 2013, that ratio plummeted even lower, with RBC’s data showing gold prices on average rising 1% after the first week, and 0% in subsequent months. RBC attributed the change to the significant increase in liquidity and access to the physical gold market in the form of coins, bars, and ETF products. “While we saw short-term upticks in gold following the Brexit referendum in 2016 and gold rallied amid heightened geopolitical tension related to Syria and North Korea last week, we believe that geopolitical events no longer serve as a key driver of the gold price, which appears instead to be overwhelmingly driven by the global macroeconomic backdrop and sentiment,” the report added.
Apparently a recent report on FinViz.com indicated that there is a record amount of paper shorts that are getting heaped onto silver. This, coupled with the fact that the summer months usually see silver drop in price could mean that silver is headed way down. Bombs dropped or no bombs dropped, silver could be crashing down soon.
Basically it means the mines are digging out shitloads of silver. Hence silver traders are shorting. You have to remember the shorters of silver are mostly commodity traders, they aren't interested in silver as currency.
