PMs Going South

Holy - are PMs ever taking a dive this morning! What is going on?

Election results...

Goldenchild - Please excuse my ignorance, are you saying that because there is a tendency towards republicanism that all of a sudden people are abandoning PMs and putting huge faith in markets? Just like that?? I guess I just don't get politics. One thing I have noticed in the silver bullion market is a product stamped "Den of Thieves, Not Federal, No Reserves" a product by Silver Sheild, 1 toz bar. To me that kind of says it all.

What you see is fall of price mostly of paper gold and silver. Demand for physical is even stronger and lower price is only going to increase pressure. I have recently read somewhere about China going ahead with creation of independent (or I do not know how to call it) price of precious metals. London fix is not going to be the only price.
While it is easy to purchase gold or silver in tons in form of contract or paper "allocated gold", try to demand delivery. This fall of price is only going to shift more wealth to the east as India, China and even Russia are out there buying everything they can put their hands on. Bullion banks have tremendous problems to scrape amounts needed to be delivered.
One day we are going to wake up and find that all we have in our vaults is just paper.

Long Shot said:

Goldenchild - Please excuse my ignorance, are you saying that because there is a tendency towards republicanism that all of a sudden people are abandoning PMs and putting huge faith in markets? Just like that?? I guess I just don't get politics. One thing I have noticed in the silver bullion market is a product stamped "Den of Thieves, Not Federal, No Reserves" a product by Silver Sheild, 1 toz bar. To me that kind of says it all.

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Things like elections, wars, natural disasters and other major events sometimes cause the metals market to fluctuate one way or the other. Oddly enough a drop in price would indicate people dumping their metals because of the perception that things overall are going to get better? But really with the metal market you can never know exactly why prices go higher or lower. Metal prices going down because the sky is blue is just as good a guess as any.

The election did have alot to do with it, but yeah who really knows. I think the sky being blue is probably the best reason i can figure why the metals markets are in turmoil. They day one of us knows exactly how that darn market works is the day pigs fly. What i do know for sure though is a couple of the larger silver mining companies are just stock piling till the price goes up. Also the US Mint has suspended all Silver Eagle sales. Those 2 factors, piled ontop of an all time high physical demand, are going to put extreme tension on the metals market.

Friends whats wrong with today? US dollars is strong yet PM is going sour. :shock:

richard2013 said:

Friends whats wrong with today? US dollars is strong yet PM is going sour. :shock:

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You actually answered your self. When the power of the US dollar is strong, commodities values go down. All commodities, food, gas, metals, pretty much all consumables drop in value. For the bottom feaders like me, it's like a horror movie. This is the climate that makes millionaires overnight. The precious metals market is down and the dollar is high. Now is the time to invest in precious metal when you can actually buy more precious metal with less money. You can be fairly sure that the prices will rebound in the near future. I preach on the value of crude oil and gold being tied together and the markets for one reflects the other, as both have dropped at much the same rate gives credence to my outlook. Watch crude oil prices globally, but be wary of US oil as the US has stepped up production of domestic oil output. When the global crude price starts to rise, so will the precious metals begin to rebound.

Platinum is at its all-in Global Production Cash Cost average right now so it's breakeven for mines to produce. For those who care to look at the report, you can go here:
https://forms.thomsonreuters.com/gfms/

Thomson Reuters does a very nice job with these reports and makes them available gratis to our industry. I know one nice young lady who works for them who's really sharp!

Gold has room to fall. Pt/Rh, I think will rebound and I'm bullish on both through 2015. Pd has been a champ this past year with European autocat demand (despite the weaker Euro) and I've been happy with iridium ownership given it was bought at $400/toz last Dec and is up quite a bit this year.

So far as I'm concerned, back up the truck on Ag/Pt/Rh. I always keep away from gold, too psychological. It is pretty to keep in the hand!

Interesting.

GREENSPAN: Yes... Remember what we're looking at. Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can macth it.

http://www.zerohedge.com/news/2014-11-07/greenspans-stunning-admission-gold-currency-no-fiat-currency-including-dollar-can-ma

[youtube]http://www.youtube.com/watch?v=Oz4-Tru_30A#t=186[/youtube]

patnor1011 said:

What you see is fall of price mostly of paper gold and silver.

While it is easy to purchase gold or silver in tons in form of contract or paper "allocated gold", try to demand delivery.

Bullion banks have tremendous problems to scrape amounts needed to be delivered.

One day we are going to wake up and find that all we have in our vaults is just paper.

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It's called "fraud"

What I mean is that if I had say 100 ozt of silver in my safe (vault) at say a spot price of $15/ozt I would have $1,500 in silver

But if I sold that 100 ozt to 10 people on paper at spot my silver would be worth $150/ozt or $15,000 to me for the 100 ozt sitting in my safe

Then - if one day 2 of the 10 people I sold paper to came and demanded the actual silver the first one would get his silver but the second guy would get an -"I am sorry but I don't have your silver I only have a piece of paper saying you have an interest in silver" (keep in mind that this guy does not want his "money" back - he wants his silver - because on paper that is what he bought)

He would then go to the authorities & report that I sold to him on paper (contract) 100 ozt silver but when he came for the silver I did not have the silver to give him

I would then find my self in the back of a police car hands cuffed behind my back on the way to jail for "fraud"

Now - multiply the above numbers by a few trillion --- then you have enough money to "bribe" the authorities (puppet's) into passing laws that exempt you & only you from fraud even though in principal that is what you are allowed to do & to do so with out limit

Its like a buddy of mine says - Kurt - if you want your gold & silver to be worth more you just need to have enough to be part of the "Criminal Elite" so you can sell it 10 time over on paper & be exempt from fraud :lol: :lol: :lol:

OK - that's my rant for this year :mrgreen:

Kurt

Haha Kurt I for one enjoyed your extremely well worded rant. 8)


Jon

But K you are talking about the real world. We now all liven a world where each girl gets a lolypop and all the guys can google a Kardashian butt.

One phrase - criminal elite. Wonder where it will end.