Economist Predicts that the Price of Gold & Silver will Drop this Year. Is he Correct?

[Bossobass]

Silver is up 30% in 60 days. I'd say that's as short term as it gets and beat the hell out of hanging onto dollars.

Since September '08, silver is up 300% with huge upside potential.

Meanwhile, debt has not been written down one iota. Trillions have been printed to prop up the debt.

The guy's insane and couldn't have called it more the opposite of reality.

You can have the dollar, I'm in silver. We'll see what happens.

Bosso

[Trigonx]

All I know is that it's dropping all the gains from the past 2 days in less than one hour. At the time of posting this silver is back to 35.50

And I bought some silver on Monday and Tuesday, so silver is gonna drop under $30 now.

I have given up on timing, I just dollar average my purchases.


dammnn... $34.37 now. Over a dollar dropped after posting this less than 5 min ago.

[Guzabuza]

What deflation? ECB just pumped in 1 trillion euros into the banking system. BOE pumped another 50 billion pounds, Japan went all in and said they wont allow inflation under 1 %, noticed gold priced in YEN lately? The fed is STILL buying bonds and doing the twist, a form of interest manipulation. Have you seen oil and gas lately? Deflation wont be tolerated. He is right that the natural forces in the economy are deflationary, but central bank printing presses are more powerful. Go read Ron Pauls book , The Case For Gold. It is free on mises.org. Look at the index for wholesale prices going back from 1800-1980. I put all those numbers and made a graph to see it visually. From 1934, when Presdient Roosevelt made it illegal for people to hand in their fiat for gold there has been 1 year of deflation. That was in 2009 with a 2,5 annual deflation rate. In other words, since central banker 100% took over the issuance of monies in 77 years there has been 1 year of deflation.

Could the metals drop? Sure they can, in todays digital manipulated bullshit market everything can happen, will it change the fundamentals? no. For instances like todays bullshit drop in pm. The stock market is 100% rigged casino, where three guys behind a computer screen can sell 10 billion $ of gold or silver futures and drive down the price down 8 % . Price support the market was building for 1 week gets wiped out without any resistance in 30 min? Use these bullshit opportunities and hoard as much as you can.

[Guzabuza]

"BULLET: GOLD: More on the sell-off in April COMEX gold -- an.
29-vlj-2012
GOLD: More on the sell-off in April COMEX gold -- sources saying an
estimated 55,000 gold futures contracts were sold withing a 12-minute
window."

So lets do some math, 55000 * 100 (each contract is 100 ounces) = 5500000 ounces. Looking at April comex gold futures chart i would say most sales were done between 1730-1750 $. So 5500000 * take average of 1740 $ = 9,570,000,000. Somebody sold 10 billion of gold in 12 minutes. Who the fuck has 10 billion $ of gold sitting around on his balance sheet ? If you cant send these cocksukers to jail then either join them and short or thank them and look at it like a gift and buy cheaper pm.

I would rather want to see these cocksuckers to be be-headed but since i am just a common serf the only thing i can do is to buy cheaper pm

[ctiger2]

Harry Dent is NOT correct. Harry predicted a crash for fall '11. WRONG!

Dent's advice is actually good fodder for the contrary investor.

[ILUVRP]

mainly headge funds , they just move in mass which ever way the markets move , their margin is only about 6% , thats a lot of leverage .

its a game to these guys , gold at $1700/oz= $170,000/contract X 55000=$9.35 billion face value

gold at $1700/oz=$170,000/contract X .06 =$10,200 X 55000= $561 million ( with 6% margin ).

leverage is a big mover. also as soon as gold price went below the maintance of the margin people started receiving margin calls to get the margin back up , i am sure thousands said " no way get me out " , which leed to more selling , these things feed on themselves.

[tmg19103]

I think Dent relies too much on age demographics and this is demonstrated in how he missed the housing bust. He only saw a "softening" instead of a collapse.

Age demographics do play a role. I follow the Austrian school mostly and what the Fed is doing, but you need to add many factors to the equation and age demographics is just one and not a panacea.

So far the Austrian school has been right on everything except rampant price inflation, and if you understand why we don't have rampant price inflation while having bigtime monetary inflation you are ahead of the game.

Still does not mean there are many investment options out there unless you are a skilled trader looking at options, commodities, shorts, etc.

[Guzabuza]

Thats the whole point of the takedown.

How many hedge funds have 561 million $ laying around just to cover the margin?? This not even a trade. There is not even any technical evidence to justify such a large trade. This is 100% speculation to drive down the price.

[ILUVRP]

thats one reason i keep posting that the CFTC should raise the margins on crude oil from 6% to 75% and run the funds out of crude mkt , also make all contracts that are bought delivery only , if you buy a contract you must take delivery.

you would see crude at $50-60/ba very fast.

headge funds have trillions of dollars .

[sgt150]

How can people be predicting gold and silver to go down when the debt levels are only skyrocketing and the Fed is throwing trillions around and shows no signs of stopping their approach?