ALERT PM's taking a beating

http://www.apmex.com/

What's going on ?

ALL commodities are getting hammered today. Oil is down $2.43 (YEAH!!).

Yay!

Silver is on sale today! Buy on the dips.

Think I'll head to the coin shop and pick up some more junk silver.

I just bought 10 ozers @ 30.11. Anyone who wants to buy silver just let me know and I'll make my purchase first so you'll benefit from the dip.

There will be a lot of different reasons put forward for their drop, but IMO the
only question one needs to ask/answer is; Is this the end of the bull market,
where we've seen the highs for both and it's over, or is this just a correction,
where when it can't go lower it'll reverse & again go up to even higher highs?

If you know the answer to that question, everything else is just noise, and you
can confidently act accordingly.

IMO, and time will tell, this is a correction and not even a very deep one yet,
when you see we've only pulled back to where both gold & silver were just 5
trading days ago. Thus, this will later be seen by all as a buying opportunity,
to pick up some more on the cheap, when they both resume going back up to
set even higher new records.

Most can't get excited about buying, and wishing they had earlier, except for
when they are all the buzz and hitting new highs, but then it's too late they
tell themselves, so they don't buy. And, when they have pulled back, same
folks won't buy then either, afraid they might go even lower and/or that the
trend might not be real now that they are not all the talk hitting new highs.

But, the big smart money is always made then, by buying more on the cheap
when others are selling on weakness or are scared to buy more, wondering if
they are going to regret not selling for more when they could have earlier.
Most only see that the value of their PM holdings have lost X%, and in that
pain they don't see the opportunity to add to their holdings on the cheap now.

If your convictions are strong that the up trend will resume, that this is just
a correction, then this is a great buying opportunity to get some more before
it does, it's that simple. That most don't see it that way, should not surprise
you, as most have missed the rise to date and will miss the rise to come, for
whatever reasons they tell themselves that they can't buy any now either.

For all those who've commiserated not having had any, or more, gold & silver
as they've both gone up 6 fold over the last decade, these pullback corrections
are their opportunities to get some on the cheap before it resumes its rise.

The smart money is buying in here right now, IMO, increasing their positions.
The non-smart money, IMO, will soon be wishing they had, again, as usual.

Got God, Grub, Guns & Gold?
Panic Early, Beat the Rush!

- Shane

I wouldn't call this cheap. Let silver drop another $5 then I would consider buying more. At this price, by they time you pay the premium and possible shipping, the cost is over $32/ox. It's been a month that the price has been in the $30/$31 range. It can't seem to push past it. Maybe it isn't going much higher.

Gold hit resistance yesterday and couldn't break through...once it does we'll see an explosive move to the upside.

fairbanksb said:

It's been a month that the price has been in the $30/$31 range. It can't seem to push past it. Maybe it isn't going much higher.

Click to expand...

Need to look at a longer term chart, you could have said that about silver when it
was at numerous previous round numbers, too, that it's long since now surpassed.



Also, it went from $20 to $25 to $30 pretty fast, too, that it pauses here and shakes
off weak longs and frothy speculators before resuming the trend is very healthy.

BTW, I'm getting a kick out of the CNBC talking heads today all talking gold down, with
predicting it's the beginning of the end for it, that it'll go sideways at best for months
on end. These guys/gals have never had anything good to say about the PM's, and they
have discouraged anybody ever getting any for over a decade as they've gone up 6-fold
and been the best asset class all that time. Why anybody would think they are suddenly
any smarter today to be telling anybody what gold/silver will do tomorrow is nutty.

BTW2, the PM's in the past have gone sideways consolidating for weeks and sometimes
months after a correction, before resuming their rise, but lately these pullbacks have
been getting very brief. IMO, as soon as the market is convinced they are not going any
lower, they will promptly and sharply shoot back up and on to new highs. It'll surprise
many how quick that'll happen.

Got God, Grub, Guns & Gold?
Panic Early, Beat the Rush!

- Shane

TPTB want everyone to sell those "worthless" precious metals and fully invest in our great stock market. Don't worry - the prices of PMs will be back up in a week or so.

All the bullion market needs is a hiccup somewhere else, it will be right back at it... And it seems that there are plenty of potential hiccups available.

Dan

.. in the memorable words of Sir Charles Barkley and comedian Frank Caliendo's hilarious impression of Sir Charles .. "this is turribull, just turribull"

Watching daily PM charts is a crazy-making activity. I advise against it. Look instead at the long term, and consider whether the long term market is going up- or down.

And don't think of PM prices as going up, but instead consider them as a reflection of the purchasing power of the FRN$- which is going down. To wit, as I have posted before:

It might be more useful and far more realistic to think of the price of gold in fractions of an ounce per "FRN dollar" rather than in "dollars" per ounce. For instance, in:

1930- 1/20 ounce of gold was a dollar (a real one, we went off the gold standard domestically in 1933, though the Federal Reserve was founded in 1913)

1940- 1/35 ounce of gold = 1 FRN$

1971 - 1/42 ounce of gold = 1 FRN$ (and we went off the gold standard internationally in 1971)

1974- 1/100 ounce of gold = 1 FRN$

1980- 1/800 ounce of gold = 1 FRN$ (for about two days, anyway)

1990- 1/400 ounce of gold = 1 FRN$

2000- 1/273 ounce of gold = 1 FRN$

2001- 1/279 ounce of gold = 1 FRN$

2002- 1/348 ounce of gold = 1 FRN$

2003- 1/416 ounce of gold = 1 FRN$

2004- 1/438 ounce of gold = 1 FRN$

2005- 1/518 ounce of gold = 1 FRN$

2006- 1/638 ounce of gold = 1 FRN$

2007- 1/838 ounce of gold = 1 FRN$

2008- 1/889 ounce of gold = 1 FRN$

2009- 1/1118 ounce of gold = 1 FRN$

2010- 1/1400 ounce of gold = 1 FRN$

(Figures based on information from historical charts provided by Kitco at http://www.kitco.com/charts/historicalgold.html and from a decade summary of gold prices at http://www.commodityonline.com/news/How-gold-soared-from-$273-to-$1400-in-10-years-35175-3-1.html ).

fwiw,

dd

When I see metal activity like this, I start looking for bad U.S. economic data to be released in a few days.

From my point of view this isn't anything to get excited about.