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Gold's Two Stories: Paper Markets Collapse... While The Retail Public Buys At A Record Pace
Submitted by Mac Slavo via SHTFPlan.com,
We’ve seen some significant swings in precious metals over the last several years and if we are to believe the paper spot prices and recent value of mining shares, one would think that gold and silver are on their last leg. Last weekend precious metals took a massive hit to the downside, sending shock waves throughout the industry. But was the move really representative of what’s happening in precious metals markets around the world? Or, is there an effort by large financial institutions to keep prices suppressed? In an open letter to the Commodity Futures Trading Commission First Mining Finance CEO Keith Neumeyer argues that real producers and consumers don’t appear to be represented by the purported billion dollar moves on paper trading exchanges.
With China recently revealing that they have added some 600 tons of gold to their stockpiles and the U.S. mint having suspended sales of Silver Eagles due to extremely high demand in early July, how is it possible that prices are crashing?
As noted in Mike Gleason’s Weekly Market Wrap at Money Metals Exchange, while it appears that gold is currently one of the world’s most hated assets, the retail public continues to buy at a record pace:
The paper market is telling one story. But the actual physical bullion market is telling quite another.
The U.S. Mint has sold over 100,000 ounces of American Eagle gold coins so far in July. That’s the highest monthly demand volume registered since April 2013. And that’s just as of this week. There’s still another week left to go before the final sales tally for Gold Eagles comes in for the month of July. It could be one for the record books with 109,000 1-ounce Gold Eagles sold — with bargain hunters purchasing 6% of the U.S. Mint’s production from Money Metals Exchange.
As for Silver Eagles, the U.S. Mint has given up on trying to keep up with demand. After brisk sales during the first week of July, Mint officials suspended deliveries of Silver Eagles to dealers. Sales of the popular coins are set to resume next week. But we expect the Mint will be unable to get its act together and keep up with demand.
Listen: Full Interview With Chris Powell Of The Gold Anti-Trust Committee (GATA)
It’s not clear exactly who is suppressing precious metals or why, but it is quite apparent that prices on paper exchanges are completely disconnected from reality, as retail buyers are taking this opportunity to scoop up gold and silver at prices that are 50% or more off their highs.
But what happens next? That, of course, is anybody’s guess, but considering current prices and movements within the context of a broader economic crisis, there is a precedent for what we have seen in recent years.
We need only look back to the recession of the 1970’s.

You’ll notice that gold saw some significant price movements, not dissimilar to what we’re experiencing today. There were several down swings of 25% or more within the broader gold bull market. Most notably, take a look at what happened from 1975 to 1976. Gold shot up to nearly $200 an ounce, only to be pounded just twelve months later by 50% to a price of just over $100 an ounce.
As the crisis accelerated in severity into the late 1970’s, complete with gas shortages, job losses and geopolitical tensions, we saw gold explode in value to a high of $850 by January of 1980.
We’re not necessarily suggesting that gold will follow the exact same pattern. But history does rhyme, and the world again finds itself in serious financial, economic, and monetary crisis.
As we’ve noted before, gold is and always has been the historical asset of last resort for preserving wealth. Should the current crisis accelerate as we saw in the 1970’s, the value of gold will likely rise accordingly. We may not be looking at a 700% increase in price like we did from 1976 to 1980, but there is a distinct possibility that we will witness serious gains in real value as crisis and panic unfold.
You can’t eat gold and silver, of course. If crisis is coming we have always urged our readers to prepare themselves for disruption to credit-dependent commerce systems with reserves of food, emergency cash and other supplies. But having a physical asset with real monetary and barterable value in your possession is certainly an important strategic consideration going forward.
It’s been said that an ounce of gold could buy 350 loaves of bread in Biblical times. Today, an ounce of gold still buys about 350 loaves of bread. However you slice it, whether the system falls into a deflationary depression like the 1930’s or an inflationary recession like the 1970’s, gold will maintain its purchasing power.
Though past performance is not necessarily an indicator of future results, we have over 6,000 years of history backing gold’s legitimacy as a true mechanism of exchange.
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Paper gold is as baseless as fiat.
Private possession of physical or you've got nothing but a claim which will invariably fail at the worst time.
Exactly! The day when the physical prices diverge from the paper prices of gold and silver is approaching. With prices so low, it is becoming harder to find physical silver. Why? Because not many want to sell at these prices.
www.etsy.com/shop/ScentSavers
Its better to get out of thefiat/digital/paper markets a few months or years early than 1 minute late. Capital controls, ATM lines, riots, and dumspter diving like in Greece is coming to our shores in the future.
You always sell more when things go on a discount, it doesn't mean that the price will rise.
The gold changers will be driven out of the temple.
But prices are supposed to drop because people won't buy at a particular price. So when prices continue to fall with record sales (see the US mints record breaking silver sales in recent months/years), its obvious its not the physical demand driving the price. But yes, buy low sell high.
No doubt about it, gold and silver are two of the worst investments available to you. Investing into an insurance policy that only pays if the entire financial system blows up seems ridiculous, which is what many here at ZH are banking on. Doomer goon investment strategy 101.
Please look at page 62 of the following link for the historical chart of gold and precious metals. Remember, there's no dividend and no coupon either.
https://www.jpmorganfunds.com/blobcontentheader/202/900/1158474868049_jp...
Now, please look at page 17, 41 and 54. Take you pick. You could have put your money into almost anything and be better off.
People here aren't necessarily buying gold as an investment per se. They have other reasons for doing so...
Just go look at Eb*y for 90% silver dime rolls via Buy It Now Auctions. Heck, they are asking 30% and 40% premiums for circulated stuff. Some want 50% over spot!!
Houston, we have a problem...
You got it. I am selling off a few of our old 90% and I am getting 50% over spot on a regular basis and these coins are nothing special just run of the mill circulated coins
You got it right; this is why the paper gold collapses - people started to get it that it is paper as nominated and as good as the fiat so they just started to dump it.
I love not only having the insurance but getting to keep the premium as well as pass it to my future generations
It is impossible to have every investment class rising at the same time.
The price of gold will rise again.
The (paper) price will go down till the FED loses control. Then it may be worth more than your condo.
The problem is that your not looking at the bigger picture. The global economic meltdown is orchestrated. Why do you think all of these governments are borrowing from their central banks as fast as they can. They are fomenting the inevitable default and crash. That is why the smart money is on insurance hedging. We know what they plan, we just wait for when it kicks off.
hmmm,,, borrowing from central banks that have no money in their accounts.
Hey,,, what could go wrong!
well, chump, i bought my gold with aussie dollars. tho gold is down 10%, the Aussie is down 30%.
nice try, but you just look like a trolls knobend
well I had some gold, if I still had it, my purchasing power would have been protected as my countries Fiat has recently lost approx 12% of its value.
LOl you are referencing JPMorgan, nuff said. Long gold/silver over debt ridden paper profits anyday. But hey, at least you will have paper to burn IF cash still exists when it all crumbles as I am pretty sure you are nowhere near prepared or knowledgeable enough to sustain yourself.
Does the FED have a blog you could read and comment on?
Physical gold and silver are the only available secure investments for profiting from governmental incompetence - the only investments which the government cannot conveniently steal. I am beginning to acquire a position at these low prices.
Not the only.
Anything that you can keep in you own hands works the same.
This includes precious stones and artwork.
@Cognac I'd rather watch my PMs lose 90% of their fiat value than put one cent into your evil beloved JPMorgan funds.
CognacAndMencken we have an old saying that I am reminded of when I read your dribble, that saying is "You can't fix stupid".
If record ‘sales’ means record ‘buyers’, by extension, record ‘sellers’ must be somewhere.
American Eagles are produced by law from American mined metals. The miners are the sellers. That's the business they are in.
Physical supply needs to be shut down. Low interest rates have supported too much mine production.
https://upload.wikimedia.org/wikipedia/commons/thumb/1/1c/World_Gold_Pro...
http://marketrealist.com/2014/10/gold-mine-production-increasing-despite...
I see the obvious and widening disconnect between paper gold and physical as proof of three things:
1. Central banks and other powerful financial interests are well aware of the fiat ponzi they've created. They are NOT BLIND TO IT as is sometimes assumed here and elsewhere.
2. They're shitting themselves and are doing everything they can to protect this house of cards they've built.
3. Pre-market paper gold slam-downs and other such shenanigans could be EASILY traced to their roots if there was such an investigation. No such investigation will take place. It would be pointless because they already know who's doing it. They are.
No one is less interested in finding the real killer than the real killer.
It was Bart Chilton in the Study with the silver candlestick!
Yeah, that's why OJ Simpson said he was going to devote his life to tracking down the real killer. Coz it wasn't him.....or something.
Unless it's been the Chinese all along looking for bargain prices and motivation to get their population to buy. After all they encourage their citizens to buy gold and by the way the Chinese own the JPM tower in NYC and by extension maybe JPM and the FED itself. How this whole shit show all works out is anyone's guess.
Get your population to buy and hold a commodity, then confiscate it.
Seems to me that I've heard that riff before.
I agree, but a counterpoint is if you held paper gold,, a claim on something that might not exist, how fast can you get out. Not fast emough.
Dont get me wrong, i am a big fan of physical gold and silver. But there is not as big a "disconnect" as people think. As the previous poster put it, all physical buyers have a seller on the other side. Lots of gold available at spot plus the usual 5% premium. And there's no shortage of it. Only sign pointing to "disconnect" seems to be in silver. Premiums are going up negating some of the decrease in paper price. Hoping this is a good sign. Im buying a little gold here and there.
Heh, these articles crack me up. In one sentence they say gold is manipulated down, then in the next sentence they pull out a chart to tell you how high it's going to go! That's like navigating with a map written by a blind guy. Good luck with that..
You can buy physical PM's at close to spot with reasonable premiums, in the West, so having the mint sell out just means they werent in on the monkey hammering and didn't know to make more silver eagle.
Anyhow, I buy phys cause I want to sell it all when the gold:silver:home price ratio gets back into line and buy as many homes as I can.
But from the looks of things the Banks (central and retail) are hell bent on killing the paper market. Should that occur, things will get super interesting! I predict they will pull a China and do a bunch of funny stuff.
I think we are still far off before that happens though. Gotta start seeing some of the major gold producers go bankrupt before we know physical/paper prices are about to go to seperate ways down that price fork in the road.
Heh, these articles crack me up. In one sentence they say gold is manipulated down, then in the next sentence they pull out a chart to tell you how high it's going to go! That's like navigating with a map written by a blind guy. Good luck with that..
You can buy physical PM's at close to spot with reasonable premiums, in the West, so having the mint sell out just means they werent in on the monkey hammering and didn't know to make more silver eagle.
Anyhow, I buy phys cause I want to sell it all when the gold:silver:home price ratio gets back into line and buy as many homes as I can.
But from the looks of things the Banks (central and retail) are hell bent on killing the paper market. Should that occur, things will get super interesting! I predict they will pull a China and do a bunch of funny stuff.
I think we are still far off before that happens though. Gotta start seeing some of the major gold producers go bankrupt before we know physical/paper prices are about to go to seperate ways down that fork in the road.
I'm still hoping whoever was stockpiling the physical silver at JPM will dump it on the open market and really hammer down the price of silver. Seems like dumping future contracts isn't really giving them the same bang for the buck when they try to monkey hammer things down anymore. (Kinda like the reverse of dollar credit created to generate GDP being low)
I've never understood people that even own unallocated, let alone "paper" gold. It negates the whole point of owning the stuff.
Q: never understood people that even own unallocated
A: they are speculators. They do not intend to own the gold ( and handling physical is an additional hurdle ). They simply intend to speculate with it. As a result we do not even know the real demand for physical gold because "paper" speculation completely overwelmed the real physical demand
Sheesh. I woulda thought speculating on stocks was more tempting? Seems idiotic to me. I consider my metals as savings.
Fuck the money changers
Yes , the money changers are really the only people that Jesus showed anger toward. 2000 years later and they are still ruining our world.
Actually, there was one other particular group of hypocritical liars that Jesus despised and railed against day and night.
The religious.
Leaders, religious leaders.
Was it the religious leaders out in the streets to stone an adulteress on a hot, dusty afternoon? Or was it a mob of self-righteous, faith-driven bigots who valued dumb shit their ancestors wrote down in an ancient book more than a human being's life?
You are utterly clueless!
Matthew 23!!! My favorite chapter of my favorite book of the Bible.
Many clergymen prefer Lolita 12
Since we're changing fiat for physical does that make us money-changers? *oh shit!*
Gold, Silver, Housing etc. all detached from reality...when does the shit show begin?
I'm guessing it starts to turn this fall and takes a few years to hit bottom. But I don't have the printing presses, so when is just an estimate.
Shhhh. Don't tell anyone that physical gold is more valuable then,..wait for it ... Gold. Buy the rock and wait for the revaluation of unpayable debt and the following print fest. It's obvious...just like the housing crises. If you're too stupid to pay attention then fuck you. Maybe your genetics should not be part of the future...Darwinism at work. Don't they teach that anymore?
Zimbabwe Super Hyper Inflation brings gold based market
https://www.youtube.com/watch?v=Jt15F21jpN8
All the silver bullion available in this world is less tha a billion ounces. That is only worth $14.7 billion. US debt and unfunded liabilities have risen from $60 trillion in 2003 to $210 trillion in 2014. That's an average rise of $37.4 billion a day.
All the gold bullion available in world today is not more than 2 billion ounces. That is worth only $2.2 trillion dollars - peanuts compared to the recent rise in US debt and liabilities.
Kotlikoff goes on to illustrate that the fiscal gap is increasing at an alarming rate and that delay makes our problem much worse. In 2003, just a little more than a decade ago, the fiscal gap was $60 trillion. But by last year it had catapulted to $210 trillion. The fiscal gap may not continue increasing as rapidly as it has over the past decade, but with each passing year - as Congress and the President do their best to avoid action - our hole grows deeper by substantial amounts.
http://www.brookings.edu/research/opinions/2015/04/08-federal-debt-worse...
You're using math.
Banksters aren't burdened by such hokey religions.
Well personally I don't believe a loaf of bread costs (or should cost) what it does in fiat, "the price" (and all fiat pricing) are examples of the devaluation of fiat, not the value. I have a feeling when the rubber hits the road the $210 trillion figure will come back into line with "the value" of the product or service being offered.
For example, I think minimum wage (though I'm against ANY minimum wage as a law as it plays into the hands of Keynesian quackery & central banking) should be fifty cents an hour and a loaf of bread should be ten cents.
Pricing things in fiat works the same way going in the opposite direction, its not theoretical, pull up any currency exchange rate and compare & contrast ;-)
Fresh baked loaves of French and Italian bread sell for $1 at the Wal-Mart.
It clearly says French & Italian bread right on the wrappers, so it must be true ;-)
Do you doubt that the Waltons could indenture a tiny little Frenchman and a tiny little Italian and force them to bake loaves of bread in the Wal-Mart bakery for starvation wages?
But seriously, folks, I like the Wal-Mart.
A Baguette doesn't go as far as it used to.
Anyone that doesn't understand that gold has two completely seperate market prices doesn't understand gold.
1 oz of silver could buy a carton of cigs in 1978.... only 2 packs today
So much for the hedge
You didn't account for the much higher percentage tax on cigarettes today.
Are you from Chicago?
No. Cartons cost about $65 in PA.
But you can make cigarettes from "pipe cut" tobacco and filtered tubes at a total cost of about $11 per cartoon. There's the added benefit that unlike commercial packs of cigarettes the tubes do not contain the federally mandated fire retardant added in 2010.
Whoever was smoking the cartons in 1978 is probably dead. What a hedge!!!
I don't feel dead.
Give it a few more decades. ;)
By then my smoking will have added almost ten years onto an average lifespan. Maybe they should mention that in the in the warning message.
You're still alive but you smell like shit Billy.
I've always puzzled over the paradox of people wanting to ban something or tax something that someone else enjoys doing.
First they came for...
Every single time PM's have dropped in price over the last 2 years (and that's a lot of times!) this same story is trotted out. The mints are sold out!! (until next week) There's no supply anywhere! (yet a few months later it turns out everyone wanting and gold or silver could easily obtain it).
Adding to my string of near perfect predictions I predict we'll hear this exact same story, when gold hits $1,000, $900, $800, $700 and $600.
I plan on buying some at $860, dumping it at $960 (paper version of course, I'm not stupid enough to pay 5% premiums to anyone for anything) then I might buy some actual phyzz at $650, and I'll add slowly down to $450.
Then I'll sit back and wait 10 or 15 years for it to be a profitable trade.
OK now you've come out with predictions that not even the Jesus Christ of financial analysts would dare to say. Please your highness, can you put dates on these incredible predictions?
Permabug expects gold to crater 50%. We got the invoice. Now please crawl under whatever rock you live in.
Paper bwah... Paper gold.. LMAO.
Sitting here with a silver eagle in my hand. No matter what happens it will still be an oz of silver twenty years from now.
Ounce of silver in the 1920 = a steak dinner
Ounce of silver in 2015 = a steak dinner
That's what it was worth then, that's what it's worth today.
So using your logic silver is fairly priced now?
I think the point is he doesn't mind steak that has the consistency of a high school shop teacher's utility belt and that is cooked on a converted barrel with a mesh grate over it in the parking lot of a supercenter.
T-bone at a grocery store is now $14.99/lb. At least double that for a decent quality restuarant and that won't include tax or tip.
what kind of mongoloid steakhouse do you go to which would see you get dinner for under 20 dollars?
I guess you can use a real steakhouse in the 1920s measurement, and use the lunch special for a steak sandwich ( a boiled leather boot ) at a strip club to prove your point, but it's wrong either way.
In 1923 at De Croes’ French Restaurant, Indianapolis, a t-bone steak. French fried potatoes, salad, hot biscuits and syrup, tea or coffee, sold for for 40 cents.
Four mercury dimes minted in 1923 contain a total of 0.29 troy ounces of silver.
Assuming the price of silver is $15 per troy ounce, tell me where you can get a t-bone steak dinner with all the trimmings today for $4.35. You can't even do that at Sizzler.
Source: http://restaurant-ingthroughhistory.com/restaurant-prices/
40 oz of silver was a roman-empire annual salary of the middle class. So by that reckoning one ounce would be around 80% of an average weekly wage (52 weeks / 40 oz)
By that comparison silver would be around $800 an ounce !
Sitting here with a silver eagle in one hand and dick in the other. No matter what happens it will still be an oz of silver and a dick twenty years from now.
At least pet rocks have novelty value.
I guess should put my dick away, make a phonecall, grab 2 maples, and take some skunk out for a steak dinner. That way I can have a different hand on my rig.. Is Golden Corral open late on Sundays?
Unless you're the former Bruce Jenner...
Congratulations! You're the fucking man! Yeah!
So then you are stupid enough to pay 5% premium, not even 5 words from when you just said you wouldn't. ....... Smart.
+1 - thats when you know you're reading bullshit from an asshat.
If I recall in ancient Egypt silver had more value that gold. If the above numbers are correct. Silver is way under priced.
Havent heard of the Egypt thing, but yes silver is the way to go. It's super under valued. The gold:silver ratio is 1:70. Historically its around 1:16-20. Buy silver until gold drops in terms of silver.
They didn't have tomatoes either. Then Europeans arrived in the New World and tomato sauce and gold (relative value) took off.
(differentially huge silver deposits were found in the New World)
Quick question, who makes up these ratio's that are supposed to drive silver and gold prices? Is there a hat that they get drawn from yearly? A magical unicorn that points to a dart board of ratios that determines this? How? Because if it's measured next to what's actually been mined those ratios don't make any sense. If looking at all the gold and silver ever mined it's 1:7...not 1:70.
http://www.zerohedge.com/news/2013-03-01/visualizing-all-silver-world
God. It's the ratio as it exists in the earth.
Around 70:1 would seem so http://www.macrotrends.net/1441/gold-to-silver-ratio-historical-chart
That "2008" in the ZH chart should be "2011" ...
Ohh.. So the manipulators are going to suddenly let gold go higher because it did in the 70's? Pul-lease. We won't be seeing nothing like that until the paper and phyz markets are completely decoupled and unassociated with each other. Then bulliom goes higher but not until then.
It’s tricky.
You might try to compare today to the 70's...Nothing of the sorts!
unchartered waters today...if you were around then
Gold is cheap, unless you're actually buying some.
Liberty is a demand. Tyranny is submission.
Its amazing how these articles managed to suck in the anti gold loud mouths. You don't like gold that fine go buy your fucking bonds instead after all that area of the market is manipulation free right?....
Full faith and credit...
http://www.investopedia.com/articles/optioninvestor/09/silver-thursday-h...
If you research the "London Gold Pool" TPTB had stated that they could not lose control of the gold price, and 8 countries sold gold into the market to keep the price of gold below $35/oz every time it rose above.
They have done this before!
What is so hard to believe that TPTB want to protect FIAT by driving the price of gold down!
We all must buy phys until they cannot deliver, then we will bust their game.
I'm not sure what planet everyone lives on. I parked the " Millennnium falcon", at my coin dealer this weekend.
Gold is RIPE for the picking.
It's not etched in stone that the worlds dollars (fiat) can't go the way of the Weimar dollar or others have gone, so hedge as you see best and good luck when & if the hyperinflation to infinity for however it happens to happen.
6 years of brain-washing by malentioned gold brokers on this site has resulted quite a few ZH readers stuck with gold bought at very wrong prices (but still profits for those brokers. think GoldCore and his friends)
There is NO shortage of physical gold, and has NEVER been any such shortage. [you can say the same about silver]
what is your evidence for it ??? there may be a shortage of gold in a small town in Kentucky but thats about it.
In the (very) big city where I live, you can buy more gold than you 95% of you can imagine or afford, in 99.99% certified and numbered bars, people do it every day, without notice. they come in or out with bags full of several KILOS of gold bars. im saying BARS, not a few COINS. If you want the address i can give it to anyone (its not in the US though)
so your favourite coin is maybe out of stock in your small internet site dealer, because you live in a small town in the US and can't even afford an airplane ticket to fly you to a big city, but thats because you're talking to the wrong person.
The truth is, theres plenty of physical gold for sale. the very same physical gold which was bought to back up ETFs such like GLD when GLD was bought by investors and drove the price on the way up to 1800$ is being sold down here.
End of story.
Let me tell you why I believe your post reeks of fear. It’s because you fear the percentage of people whom have given up on the current monetary system. Remember your words fall on deaf ears, and your key strokes are numb. Gold isn't to be priced in paper value like the system would have you believe.
We value gold on historic value; which no paper capable of matching. Now go back to the rock you climbed out from under, and tell all those who will hear. The day of reckoning is coming!
yes gold isn't priced in $ . an ounce of useless gold is useless gold. its just a piece of shining metal... you can't even wipe your ass with it.
at least with paper $ i can wipe my ass with it.
have sweet dreams with your ever-depreciating piece of shining metal..
soon it will be so cheap, even the golden apple Iwatch will sell for 10$.
Another sap that did not pay attention in history class.
It's not beign bought as an investment, but as protection against the failing economic system of the world. While you are wiping your ass with your paper, those who bought gold will have physical in their possesion.
The banks can wipe out your position, from the touch of a single button, even if you have piles of it. There is not much they can do to the physical.... and trust me when the derivitive market fails, your accounts, your stocks, your house will all be fair game.
@no1ninja It caught his attention because there is a strange thing about truth. When you hear it, you know it to be true.
Not to toot my own horn, but let's review what really happened in Zimbabwe...
Let me tell you why I believe your post reeks of fear. It’s because you fear the percentage of people whom have given up on the current monetary system. Remember your words fall on deaf ears, and your key strokes are numb. Gold isn't to be priced in paper value like the system would have you believe.
We value gold on historic value; which no paper is capable of matching. Now go back to the rock you climbed out from under, and tell all those who will hear. The day of reckoning is coming!
There has never been a disconnection between physical and paper prices. Comex futures are deliverable. if physical gold price is too cheap, dealers buy physical gold, sell futures, and lock in an instant profit.
There's a few dealers watching both prices every millisecond for you, and ensuring there can't be any disconnection else they hit a button and they make instant free and riskless dollars.
people who say the contrary are just IGNORANT of how futures market works. Just read the excellent posts from Keith Weiner on ZH.
END OF STORY
Kuro_neko, NO MAS...too funny!
All you people who got cuaght up in the 2011 Silver frenzy who paid in the $30's to $40's ... here's your chance to redeem yourselves and average way down ..... buy everyhting you can below $15 .... and just use cash - don't go into debt doing it.
what is it that is funny ?
no-one want silver eagle dollars... apart from the few dozens looney people on this site.
silver eagle sales represent a few tens of millions $ of sale per month.
the broader market for silver is more like 100 times this amount. it justs take a few weeks to mint a few extra coins for the stupid guys like you while the whole market is selling tons and tons of silver to whoever is stupid to buy it here at 15$ while its obvious its going to crash to single digits.
if you were more clever, and not total morons, you'd have a real job, earn more real $, and instead of buying a few coins, you'd be informed what the market is like when you buy bars (kgs) or tons... you're just self-centered, a micro-market, the greater fools the other players dump their unwanted stuff to.
Theres no shortage of physical silver. theres a shortage of ZHers to buy silver at 20$ or 50$ . now they have all bought, and full to their limit, the price is 15$ and headed lower.
WHY is it not clear who is suppressing metal prices? How hard can it be to find out who? Is anyone even trying?
no one is suppressing prices. if you're not happy with the current price. just buy.
else shut up
Does it really matter who is suppressing the price of gold? I would assume those who want to buy gold at all prices until there is a steep increase would be the ones interested in suppressing the price of gold. China would be the prime suspect.
What a bullshit graph. It ends at 1980 right at the peak. It was in a bear market for the 20 years afterward.
the current bear market is 3 years old. only 17 more years to wait
This chart shows where the paper gold selling is coming from: The FED through it's intermediaries. Notice the obvious divergence point.
Fed Balance Sheet vs. Gold Price:
http://www.macrotrends.net/1448/fed-balance-sheet-vs-gold-price
you stupid idiot
the paper selling of gold comes from those paper buyers of gold cutting their losses...
some people do have stop losses. they lick their wounds and go to the next trade, and shut up.
some don't. for example idiots listening to manipulation stories and long from very high levels. they prefer to die with their (worthless by the day) gold and take it to hell
You've been here 1 day and 16 hours and already fired off "idiot", "end of story" and "shut up" on your various 7 posts. You have a bright future here. I'm going back to reading/lurking, I posted what I had to say.
Pirate Captain America's Policy
---------------
Keep your head($) high
So sell the Gold
let them buy it
Dont worry Let them buy all the gold
Why ?
Becuz when we have none left
We will attack them
and loot all the gold back to west
As usual
So we who are rich will remain rich
& the poor countries
let them work & sell to us
we will give them money
to buy gold
----
& repeat
Beating down the price of gold can have only objective: to move the gold from the weak hands to the strong hands. People who bought gold to preserve the value of their wealth, the strong hands, will continue to hold it and perhaps buy more if they can when the price falls. People who bought gold as a short term investment, the weak hands, will panic when the price falls and sell their holdings. This game can go on only so long as there is gold left in the weak hands. Once all the gold has moved from the weak hands to the strong, the prices will sky rocket. How much gold is still left in the weak hands? No one really knows, but it can't be much.
I never sold one single gram of gold or silver because I "panicked when the price fell." No, I listened to the people who told me to *never* sell, to just hold on, until it went back up. Which of course it never did, just the opposite.
Every bit of silver or gold I ever sold, I sold to pay bills (medical, utility, etc.) *after* I had already sold everything else I had that anyone would buy (for pennies on the dollar, of course), after every other source of cash was exhausted.
I wish I *had* been one of the "weak hands" who "panicked and sold" way back when the price first started *going* down. If I'd sold then I wouldn't have lost over $100,000. I wouldn't now be bankrupt and impoverished and dwelling in a squalid hovel on skid row, and soon to be evicted from that.
Please stop saying it's only panicky weak hands who are selling their stacks to stay alive, or to keep someone else alive.
You invested a quarter million at the peak? Holy crap. Dude I feel bad for you.
Sold a pile of silver back in November/December when wife became suddenly ill and ObamaCare fucked up insurance. I think the sale was a total of 150 ounces or so at sub-$20 prices. Fortunately I bought a shit ton in 2000-2004 when prices were around $4. I've bought all along except for the last two years.
Seriously? You conveniently missed out on all the upside, ONLY to invest at the PEAK and ride the 2-3 years down, and now you've realized you should've sold some? Anyway, you still lost AT MOST 40% on your investment. I won't cry for that fool. Be wiser next time.
Selling physical PMs before the S truly HTF is a major error. I would default on all my credit, except my mortgage, and start robbing liquor stores before I would sell a single gram. But, please, feel free to listen to whomever you wish. It is, or was, a free country after all. So feel free to screw yourself all you want. We all do it at some point and in some way. It's human nature.
From an investment standpoint, precious metals are only to be used for emergencies.
"From an insurance standpoint, precious metals are only to be used for emergencies."
FIFY
can anybody remind me - what is the cost of extraction ? $600 an ounce ?
$0
Metals of almost any type will always be worth something, as long as you have actual possession. One great thing about silver and gold is that if you cannot sell it, you can at least cast it into bullets. Bullets = value. Paper fiat? Eventually goes to zero value, except perhaps on cold winter nights to help start the wood stove.. Electronic fiat? Fail.
yep :)
full user name
Gold is money - and bullets if your out of leadGold and silver are on sale, it is a gift to us. Sorry if you had to sell as a last resort, but this next couple months will be an absolute gift for us, having the ability to turn computer digits into refined gold or silver.