How can we still..................

S

sterling-nz

Well-Known Member
Be moving sideways (give or take) after all that has happened in the last 2 weeks?
It is amazing to me that we have a FINANCIAL WORLD FIRST here with a Euro nation in default and it is pretty much life as normal.

Is anyone else surprised with the lack of sustained movement in our precious ,precious metals?
 
The problem is that even people who don't feel strongly about the future of the USA mostly know that other people will be buying dollars as a safe haven and so they themselves buy. You make money getting in early on where the moneys going, not where the truth already is. Also, most people aren't contrarian investors, they won't get in to something unless is already looks like it is going in a confirmed direction, if silver went up $5 many more people would get in on it even though it represents less value than it does now. Stackers are almost always contrarian, trying to buy at the bottom when everyone else says it's over. Well...that's not quite true, they just put ounces on whether people say things are looking good or bad, which is a type of contrarian position I guess, contrary to all popular wisdom.

I am a little surprised that the dollar didn't get a bigger bump than it did. I was betting on USD denominated PMs going sideways but with a 3 or 4% jump in the DXY.

From what I gather watching the financial news channels and reading a few different things most investors are just not trading either way, you could still get a positive move if the EU/IMF/Greeks make waves indicating that things are going to get messy.
 
sterling-nz said:
Be moving sideways (give or take) after all that has happened in the last 2 weeks?
It is amazing to me that we have a FINANCIAL WORLD FIRST here with a Euro nation in default and it is pretty much life as normal.

Is anyone else surprised with the lack of sustained movement in our precious ,precious metals?
Click to expand...

Not at all.

When the Eurozone looks like poop the USD looks dang great.

The stronger USD takes precious metal down.

The pm speculators get nervous and eventually throw in the towel while stackers stack. Err, that's "if" your local currency hasn't been devalued too much. :)
 
One other thing to keep in mind while Greece and China is in the headlines is the more the USD rallies and the weaker the rest of the global economy looks, the harder it will be for the FED to raise rates. This is something else that would be playing on investors minds, so could influence the markets in different ways that would appear abnormal based on what is going on right now.
 
I only looked at this thread because danman 49 told me about this little prick.............

:)
 
Caput Lupinum said:
One other thing to keep in mind while Greece and China is in the headlines is the more the USD rallies and the weaker the rest of the global economy looks, the harder it will be for the FED to raise rates. This is something else that would be playing on investors minds, so could influence the markets in different ways that would appear abnormal based on what is going on right now.
Click to expand...

Are you in the camp that says that a rate hike will be bad for gold on the day it happens but good ultimately because it will give investors some clarity about whats going to happen there (and the US market might drop trou)?
 
The simple answer is yes I do believe gold will have a bad day IF the Fed hikes rates, but it gets complicated after that point when you start taking into account international capital flows, other major currency depreciations against the USD and whether other major central banks are happy or reluctant to follow the Fed's lead and hike their own rates. If the Fed delays again in September, I'm hoping the markets start to call the Fed's bluff (I've been wrong about this before) as I will start to accumulate ASX gold mining shares, ETFs etc in the believe that the Fed can't hike.
 
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