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Precious metals dive in wake of optimism over a possible debt deal, silver falling more than...

Precious metals dive in wake of optimism over a possible debt deal, silver falling more than 2.5% in the minutes following President Obama's comments. It makes Cullen Roche want to bang his head against a wall. "Did people really buy silver thinking that the U.S. would go bankrupt?" SLV -2.9%, GLD -1.4%.
Comments (31)
  • so adding 2.5 trillion of fiat makes silver go down.....not in my Econ book....
    19 Jul 2011, 03:08 PM Reply Like
  • I imagine it's because the price of silver and gold includes insurance premium. No government default; less insurance premium.
    19 Jul 2011, 03:19 PM Reply Like
  • Cullen Roche............ You have officially proven beyond any reasonable doubt, with the above statement, that you truly have no clue.
    19 Jul 2011, 03:12 PM Reply Like
  • SLV was approaching the 40 level anyways. It shouldn't have gone over 37.50 right now. Moved to fast now time for profit taking.
    19 Jul 2011, 03:14 PM Reply Like
  • Every percentage drop in the "price" of silver, gold or platinum is a bargain opportunity. The larger the drop the bigger the bargain.


    In the war between Federal Reserve Notes and precious metals I fully back the metals.


    Easy as pie.
    19 Jul 2011, 03:24 PM Reply Like
  • I only listen to part of the Obama speech, but I heard nothing but the same BS he has been spinning. So why does the market think they are closer to a deal?
    19 Jul 2011, 03:31 PM Reply Like
  • The country is still bankrupt. Only the trustees are trying to keep it alive. But Borders is closing all its stores. Only the U.S Government can't close its stores. If it shuts all its stores like Borders imagine all those high powered public servants(?) flooding the unemployment offices. I just can imagine how much the government saves if it shuts its doors. But what about my SS check?
    19 Jul 2011, 03:41 PM Reply Like
  • European sovereign debt problems are more than enough to send gold and silver to new highs. This is far from played out.
    19 Jul 2011, 03:45 PM Reply Like
  • So Cullen Douche doesn't believe the U.S. IS (both morally and fiscally) bankrupt?


    Find that wall quick Cullen, and put yourself and the rest of us out of your misery!
    19 Jul 2011, 03:59 PM Reply Like
  • And does anyone believe that a "debt ceiling" deal or a deficit reduction deal will actually improve things? GS just lowered their economic forecast. We'll be lucky to hit 2% of GDP on the average over the next 5 years. We haven't even gotten to the point where the US government starts laying off people - I guess they don't think they will ever have to. So until someone demonstrates a plausible plan that's gonna reduce the deficit to a couple % of GDP....I ain't buying the kook-aid, thank-you.
    19 Jul 2011, 04:05 PM Reply Like
  • For some reason SLV is gaining ground again. From -2.9% to -2.2%. The market doesn't believe in a quick US recovery. This is logical: even if they agree on a higher dept ceiling what does that actually mean? More money has to be printed in the long term to cover dept (savings don't do the trick). More money means higher USD supply! Higher supply goes into inflation. I am with SLV & GLD.
    19 Jul 2011, 05:28 PM Reply Like
  • Silver should become firm at $37/oz and then the bargain-hunters will drop in an scoop up the white metal. Funny how someone told me yesterday that Silver would hit $60/oz by September. Then again, last year today Silver was around $18/oz and it would be absurd to think it's more then doubled since then.
    19 Jul 2011, 05:32 PM Reply Like
  • I went to a small low key bullion store Monday and sold some silver. I asked them how business was. They said they are shipping $2 or $3K of junk silver to the refiner weekly. I commented that I hope they hold on to some as I'll be back when this whole debt debate news blows over. I would infer from that that more people are selling than buying on the retail level.


    Cullen should know better, of course a certain percentage of people will get swept up in the news of the day and try and catch a run. Gold was the star of the show.


    At some point the U. S. debt debate will end - for the time being - and if Europe gets their issues resolved for summer holiday a good bit of air should be let out of PM's and open up a reasonable price point. There are two markets, the paper one that trades on the nano-second, and the physical one that trades by a calendar.
    20 Jul 2011, 09:28 AM Reply Like
  • some point the debt debate will end....and nothing will in fact change. Debasement will continue to occur. Tuesday I went to Wendy's. They changed the price of the $0.99 chili to $1.29. They recently changed the size of the medium Frosty from 16 ounces for $1.59 to 12 ounces. I call that inflation and I am glad I own $4 silver.
    20 Jul 2011, 10:24 AM Reply Like
  • Mark, the point I was trying to make is wait for good buying opportunities. The GSR was above 60 not that long ago. All this fear mongering by the politicians has PMs high when they should be low in the summer doldrums. My Wife tells me the Mom In-law is actually worried they won't get their SS check next month. Despicable.


    Inflation is guaranteed, but silver rides that curve wildly. I think better buying days will come soon when the politicians get antsy to go on summer recess. Yes, I do think the career types will base their actions as much on that as the "future" of America. Our future is already determined. This is just showmanship that has been going on since politics was invented.


    I would add that not only will nothing change, the potential to get worse is pretty good. While most casual readers would think someone with the tag Agbug is a gun toting goat raiser, I am not, however I did sell a roll of eagles yesterday to buy a Glock for my son as he is a criminal justice major and should, and may need to, know how to use a handgun, for his chosen career, or otherwise.
    20 Jul 2011, 11:15 AM Reply Like
  • AGBUG....thanks...I agree. I was not challenging your thesis, but simply concurring that there is ample reason to be PM centric. I agree that there will be buying opportunities. With physical and most of my 401k in PM, I am mostly fully invested...but my wife's 401k is ripe for the pickin - if you know what I mean. And I look for those opportunities both to invest and to change the mix. Next time GSR hits 36 (+ or - ) I will probably change mix a little silver to gold. Not much, just a little.
    20 Jul 2011, 11:34 AM Reply Like
  • No problem, I wasn't offended, just sounding off lately. I am buying Mint 5 oz. ATB uncirculated boxes to satisfy my need to buy something. They are limited to 27,000 production runs, an unheard of low amount at a gross premium courtesy of our government agency, but the first issue Hot Springs already goes for $350 +/- on FeeBay. They will make a nice hand me down to the kids and grandkids someday, no matter what silver does.
    20 Jul 2011, 11:42 AM Reply Like
  • Agbug...BTW...
    Did you say they were sending junk (Pre-1964 Silver) to the refiner?
    Why are they doing that? My guys just take it in and turn around and sell it to the next guy that walks through the door.


    I don't mind them refining makes my "junk" start looking more and more like actual numismatic. I have found some very nice coins amongst some of my junk.
    20 Jul 2011, 11:38 AM Reply Like
  • Mark, I missed your question, and in case you are still on this thread, this particular dealer just doesn't want to be bothered with keeping it on hand. It's kind of odd, but they are sort of like the "Soup Nazi" of the Seinfeld episode - NEXT! They keep a low profile and deal in larger quantities as a rule. It's cash on the barrel head and don't ask too many questions.


    I just thought it was interesting that they were taking in more than was going out presently.
    29 Jul 2011, 10:27 PM Reply Like
  • Yep....I'm still hanging around...all the SA. The conversations are much more mature than Yahoo.
    29 Jul 2011, 11:01 PM Reply Like
  • I have about 1/2 my Gold and Silver in Coins in my IRA. I have to pull $$'s out every year for being over 701/2 yrs. etc. From now on I'm going to pull out Gold Coins and some Silver Coins and put them in my Ammo box! Can you imagine the Fed, or Prez. freezing Metals Assets movements to control how Paper Monies being influenced only the way our Gov't wants? I've seen how our Congress and Courts let the Prez. make Unconstitutional takeovers. What say ye?
    21 Jul 2011, 02:40 AM Reply Like
  • Loggy, On the one hand there is more than one example where governments have tried to erradicate hard currency, USA and gold in the 30's and France with gold and silver in the 1800's. On the other, even paper currency is becoming almost rare in the U. S. A story this week indicated the Mint can't get the dollar coins they are making (worth about a nickel) into circulation. Gold and silver is such a miniscule part of the monetary system in the U. S. that even though the government is, and will become more desperate, I think they are smart enough to know that it just isn't going to help. If it does ever happen there will probably be more concerns to worry about.
    21 Jul 2011, 09:58 AM Reply Like
  • I never saw this chain..... you guys all know my deal......


    Silver is my blood......... ZSL is my ticket to easy street with now 50 trades this calander year and the holy grail when SLV hit 47+.


    Guys......... I am a little retired worm and the same 200 share money went from SLV to ZSL and 4 days later I sold ! The best trade in 35 years since I bought 200- 50 cent call options on CVC an NBC made an offer the next day. That was a condo an a 1954 Vet.


    And, I had pounded S A ; Oakshire, Money Matter blog calling the drop an all my group and the bottom would be 33 .......... After 49 years.... It is my kid..


    Guys. Watch what I keep posting over an over. Every time SLV rallies the paper short time guys take the profit... .............naturally..


    Butttttt, SLV drops 1 or 2 points it is nothing ,but, the ratio to the cheaper ZSL gives you a much higher % move.... The volume is heave enough to get in an out........ Easy money with tight stops. Worth a day or two day in an out. 5%-7% maybe 10 to 12% real quick if you use the same dollar amout.


    Fun........ In an IRA with no accounting or reporting. It is the old mans play station video game........ Play it on paper ... then play around


    Hold the real stuff........ And, the constant warning we real holders worry about .. ya know..."IF" you will never get your silver.


    Not with a short ETF..... There is no delivery..


    We went to every pawn shop and bougt everything from coind bars and scrap......... at 33 spot and how many times did I post on S A that 33 was the bottom an you all should load the truck up if it went back down. It did twice an held....... Even mom has 500 OZs..... She is now a b/s silver touter.
    29 Jul 2011, 09:30 PM Reply Like
  • Bob, where do you see silver spot going in the next few months?


    I've been fairly consistent myself in predicting the debt issue would go further than most expected and ramped my 401K deduction to the max as of a couple of months ago. So far the markets have delivered for me.


    I think it's pretty much a no brainer that gold and silver are going to drop once the debt debate ends, for a little bit anyway. The question is by how much? Is the global economy going to double dip? Has this debt issue woke people up to the need to acquire metals? Just some things that could impact silver going forward.


    The daily and weekly charts are in neutral territory and don't give me much to go by. I guess that's my answer for now.


    $33 was a good call. Any thoughts?
    29 Jul 2011, 10:44 PM Reply Like
  • Sorry, forgot about the double dip question......... YES.....


    Were there now and the massive layoffs are coming as Wall Street needs to keep there earnings up....... They are all flush with cash and stock buy backs are coming ....Not more employees........We here it every day..... CSCO; MERCK, Banks, Wall Steet, Borders and don't forget the crash in commercial real estate...... That is the bomb that hasn't hit yet because the hedge funds have been sucking it up thinking they will hit a home run. Maybe so. If there very patient.....


    Even GE, Obama's go to guy is taking divisions to uncle China. Thanx Jeff.


    And, the State an local Govs have just begun to slash jobs and all the so called new jobs at MCD an WMT are not head of household type monies. Nor is the seasonal jobs at HD or LOWS....


    Ag, the best voice to listen too is an Iranian economist who is now an American professor.......... Dr Doom....... Mr Roubini...


    Read his forecast .2013 World recession........ That is my dilemma. Rogers boom or Roubini doom. ?????????????


    I am leaning twords Rogers for the world ,but, Roubini for the US......... Ag, that is why I love it here in Panama over C/R.......... Booming at 10% GDP and things are going to get better under Martinelli............


    I wish I could wake up and the wife be 50 ,but, she wouldn't go for it....................... bueno suerte
    30 Jul 2011, 06:20 AM Reply Like
  • Ag, i think silver is dead for quite a while...... Not that 40 dollars isn't fabulous for long timers like us, but, there are so many ( SO MANY ) experts here and throughout, the so called, Wall Street arena that believe silver is more important as an industrial metal over the real money aspect.


    Thus.......... Because of the ETFs an the ease of the in an out silver is trading like a stock. Not a precious metal......... It clearly seems that way to me........ I don't listen to many people concerning silver ,but, dad who started me out at 7 and forgot more than I will ever know commented two weeks ago when he was down here that a pundit on t/v was saying silver will hit 50 when gold hits 2000. He thinks he was right....... It might be, so, unless China and India don't stop keeping there GDP down in single digits..


    There both fighting inflation with higher an higher rates. They care about there people.... The US is crapping the dollar as it is the only way out......... Despite there lies.


    I also bought back ZSL yesterday at 13.17 after the 13.70 sell and I did that even though I usually wait for the 12 area. I think if the morons do anything in Congress ........ The 2 metals will drop..


    Silver more than gold..........


    That is what bothers me. Normally silver trades like a stock ,but, on good overall stock news it reverts an trades like a metal...........Stocks up metals down..


    .I don't think silver will top 42 for a long time unless a major MAJOR event in Europe or a collapse in the US b/s debt stuff. ..........


    Or... more mayhem in the Middle East. I have written the Sept... UN situation with Israel and the two State deal could be big....... Thank goodness for little old bankrupt Greece who stood up to the low lives trying to launch the flotilla to Gaza. Yep, there Navy did it when the world was afraid to..... Bless them.


    I think silver my hit 38 before 42 unless we get that catalyst.
    30 Jul 2011, 06:08 AM Reply Like
  • thanks, Bob.
    31 Jul 2011, 06:27 PM Reply Like
  • panamaadvisoryinternat.../


    Fun little gold fiat video
    30 Jul 2011, 12:31 PM Reply Like
  • This is interesting to read on August 4 in the afternoon.
    4 Aug 2011, 05:14 PM Reply Like
  • IT will be interesting to see where the S&P U.S. credit downgrade is going to take us...
    6 Aug 2011, 02:29 AM Reply Like
  • eColi, great handle and the perfect name for a description for America's downgrade........ Infection in the belly.............


    S&P is ahhh, Dodd - Frank chaged things a bit....... Fed directed funds do not have to sell AAs....... Many AAA State an Muni bylaws say they do ,but, all 3 major ratings agencies must say so to force the dumping.. We should here this week the Fund directors saying


    bla bla bla Moddys' and Firch didn't reach the same contusion.
    ( not confusion ) We shall see......


    This can't be bad for Gold an Silver long term.....If stocks are sold off then short term profits in metals might be needed for covering stock losses........... Might get some gold an silver bargains this week..................... or coooool
    6 Aug 2011, 06:08 AM Reply Like
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