Seeking Alpha

Precious metals accelerate their slide alongside the drop in equity markets and the euro. Gold...

Precious metals accelerate their slide alongside the drop in equity markets and the euro. Gold is down 4.5% to $1,589/oz., the lowest price since September. Silver, off 8%, drops below $29/oz. On the industrial side, copper -4.8% to $3.27/lb., still well above the $3 level hit in October.
Comments (10)
  • Considering $1315 was the year low for gold, today's price looks good. And we're still above the year's $26.87 low on silver.
    14 Dec 2011, 04:20 PM Reply Like
  • If you view a long term chart from the 2008 low you see that gold has traded in a well defined channel until it broke well above the channel in July of this year. It is now testing the bottom of the long term channel and is at long term trend line support as well. This is a good entry point because it gives you a low risk well defined exit point if the trendline is broken. Gold is a negative real interest rate investment. Perhaps the rapid rise of rates on Euro debt are perversely pulling money from gold and into the very debt that gold is supposed to protect investors from.
    16 Dec 2011, 01:18 PM Reply Like
  • This was a very bid short drop mainly on a strong dollar. It is a good point for firms who use gold and silver to get the physical at a low price. Being silver is used more than gold the silver price is abnormally low for its real demand.
    14 Dec 2011, 04:48 PM Reply Like
  • Of course they slide.

     

    Peter Schiff said last week "this is a good entry point for precious metals"........

     

    Just saying.
    14 Dec 2011, 05:13 PM Reply Like
  • This is understandable as Euro said no to just printing money.
    14 Dec 2011, 05:16 PM Reply Like
  • What about the US printing? The United States will run trillion dollar deficits until the markets forces Congress to stop. Obama admits his trade policy is debasing the dollar.

     

    Why head into the dollar? It has lost 97% of its pricing power since 1913. Gold as the same purchasing power since Rome times. It will continue.

     

    I will keep my gold and silver coins and continue to buy more.
    14 Dec 2011, 05:30 PM Reply Like
  • Look for large bounce. Lot's of problems in Iran!
    14 Dec 2011, 09:02 PM Reply Like
  • Don't be fooled by traders. They are heavily leveraged and need dollars to settle. The paper pushers are selling their positions to settle in paper. This is driving the dollar up because the trades are denominated in dollars. The dollar is paper and when the music stops everyone will pile into hard assets.
    14 Dec 2011, 09:04 PM Reply Like
  • I know this may sound counterintuitive to some but I am long ZSL and buying physical gold. Silver is too easily manipulated and I don't believe in paper silver or gold. I do however believe in gold long term and will buy more physical.
    14 Dec 2011, 09:15 PM Reply Like
  • The only hope for gold to continue to rise is if the US, or any other country continues to monetize its debt. If some politician gets elected who decided to stop printing money and restore fiscal/monetary sobriety, gold may start to lose. Until that point, these small fluctuations seem to be merely just that, fluctuations. People run from the Euro out of the frying pan, into the fire (US dollars).

     

    If the Euro was stable and there were no debt issues in Europe, the US would be under a ton of scrutiny. The dollar is floating not just because of its inherent strength, but because the Euro is drawing so much attention away from the issues concerning the dollar and the US debt/monetary crisis.
    15 Dec 2011, 01:58 AM Reply Like
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