0 votes

Why is Gold and Silver in free fall yet AGAIN?

After hitting $1007/oz last week, Gold has plummeted each day this week down to $930/oz, and most likely back to the 800s range by the end of this week.

Silver is in total free fall, going from around a high of $14.65/oz last week down to the depths of 13.00/oz in a massive retreat back to the $12/oz range.

I have lost all faith in the people that say Gold and Silver are "safe stores" of value on the one hand, and then acknowledge that the commodities markets are manipulated by the Central Bankers on the other.

These statements clearly contradict each other. Market manipulation of this nature can never provide safety.

Furthermore we have seen three straight times now, within the past one year, a precise systematic short-selling and selling-off of commodities, once Gold gets up to the range of 1000/oz.

This clearly argues the case, that Gold will never exceed 1000/oz, because as soon as it gets that far, the Central Bankers will kick in the short-sells all over again and start a new panic on commodities. We have seen this now, over and over again.

So there is no senario in which Gold will, for example, ever get up to 1000/oz, and hold there or even increase, with all the market manipulation going on. This is what the past history has shown.

It makes no sense that skyrocketing debt and expansion of the money supply, would bring about a plummeting of prices in Silver and Gold, but there you have it. The Central Bankers own most of the Gold in the first place (as they have literally for several Centuries).

It's not a free market.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Store of value does not equal ballooning prices

The reason it started falling at $1000 was because people like me sold at that point to lock in gains. If you pay attention to charts and remove your emotions, you won't continue handing over your money to me every time.

I'll buy again somewhere between $850 and $900.

Gold like stocks

lose and gain value in cycles. If you buy physical gold and silver for what ever the reason, just relax and stay firm with your convictions. To often people get caught up in the minipulation theory. As much as I respect all of your thoughts on this subject, I see some wavering here.

Peter Shiff, Jim Rogers have the end game figured out. Yes, they are not perfect in their timing and they make no clams as market timers. Rest assured
these men are gifted and have informed you well in advance.
Ron Paul was warning America for many years before the meltdown.
We still have NAFTA, Bad Banks, huge amounts of foreclosures to come, another war to fight, run away credit card debt, empty retail shops, auto bailouts round two and three to come, AIG mess, tax increases so on and so on.

Rest assured inflation is coming down the road. I started out on my own in 1977 and new very little about economics, this time around feels so much more uncertain.

I bought a large portion of gold and silver recently because this situation we are in now will be much worse by far.

"I have lost all faith in

"I have lost all faith in the people that say Gold and Silver are "safe stores" of value on the one hand, and then acknowledge that the commodities markets are manipulated by the Central Bankers on the other."

Sigh! Look up the phrase short sighted and study it. Then look up "store of value"

When it all collapses there will only be one thing left. "gold and silver" if you're trying to make money day trading physical gold and silver (even just in your mind) then please sell all your PM's and go buy big screen TV's, cars, what ever and enjoy yourself and forget about it.

Either that or get educated. You shouldn't be taking anyone's advice here or anywhere else unless you understand what it's all about.

I am getting tired of people coming on here and saying " i have lost all faith" blah blah blah because they don't understand how this works and just took someones word for it then get all bent when their preconceived false notions don't pan out in half an hour...

Get Prepared!
Only dead fish go with the flow...

End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

yessir high five to you. I

yessir high five to you.

I don't make a whole lot of money but I have bought some silver (at $16/oz) and I absolutely did not care when it dropped way down. People have got to understand that PM's are really only good as vehicles to store your wealth. For me that's not a whole lot but I do know that even as the currency is inflated to death and prices continue to rise my silver will continue to buy roughly the same amount of goods. I did hope though that silver would skyrocket like some promote because that would have been nice, but I didn't hold my breath and I'm not upset that I paid more than what it's worth right now. Plus I didn't put all my eggs into this one basket, which is also very very important.

Thanks hawkiye

Folks have gotten used to instant gratification, and don't really understand what it means to prepare for the future. They think of the future as just tomorrow and can't thibk in terms of months or years.

If I never have to spend any of my metals then I still am happy to have them, that means my son will have them, and then his son, and the value will always hold, try that with a paper dollar.

Thank you Dr. Paul for making me act on what I already knew was right.

*May the only ones to touch your junk, be the ones you want to touch your junk.*

Please take this comment to

Please take this comment to be pure hear say but let me say it

The US is looking at buying a bunch of gold while dollars are strong....
Dollars are still very strong so why not run them up b4 they pop?

I saw this video on youtube tonight and thought I would share it

again I am not saying it is true -- just another reason.
Ft.Knox buying Gold

Money is made when markets "move" ... or should I say "breath"

The big players are not buying metals to stash in a box under the bed ! They buy BIG when they are sure the market will rise...when it hits the figure THEY have set to sell off...down it does again yeilding the speculators profit and "bouncing" the price in a "rollicoaster" fashion.

Discover Costa Rica

Discover Costa Rica

It's manipulation, nothing

It's manipulation, nothing more, we've seen this dance before. And I'd hardly call it a free-fall.

Gold buys what it always bought.

Its a store of value. Don't think you will get rich buying gold. Think I won't be bankrupt owning it.

I began to understand gold as a store of value about 5 years ago. Joe Battaglia is a gold advisor from goldline.com. He explained it this way. If you had a $20 gold piece from 100 years ago it would buy a fine mens suit. That same $20 gold piece today will still buy a fine suit. With todays price of gold that is absolutely true. But what will a $20 bill buy you? Certainly not a new suit. So you begin to understand the reason to save gold instead of Federal Reserve notes is not so you can get rich. Its so you can buy in the future what you need.

What has happened to the value (ie. purchasing power) of the dollar since the creation of the Federal Reserve. Nothing but a steady decline in value, reflected by the higher "price" of goods and services.

If you are looking to beat the market good luck. If you are looking to stave off a financial calamity then own gold and silver. You will definitely sleep better knowing your "investment" will always buy what it always bought. Isn't that the reason we save. Why save what will buy less tomorrow.

It is called a correction.

It is called a correction. It is bound to happen eventually when gold and silver have been rallying for almost a month and a half straight. I've been waiting for this, and just loaded up on silver bullion today. It may go lower... who knows... I won't pretend to be an economist or investment adviser. At this point I'm going to listen to Jim Rogers and Peters Schiff and hoard as much gold and silver as I realistically can.

For those who think that gold and silver aren't "investments", get real. They don't pay interest or dividends, sure, but are you trying to say that you can't appreciate wealth buy buying and selling gold and silver? This is blatantly false and I won't spend any more time going into it because it is really simple mathematics and not a matter of opinion.

"The sinews of war are infinite money" ~ Cicero

"The sinews of war are infinite money" ~ Marcus Tullius Cicero

buy more

"total free fall"
"massive retreat"

This is a buying opportunity. I picked up some more silver eagles yesterday at my local coin dealer.
I will use this handful for spend/barter. These beautiful, shiny, silver coins wake people up! When people get these in their hands, something about them changes. They know it is real.

Good questions

A week or so ago I was lamenting that I had not cashed in some bonds to buy gold, but not - as you say - gold is down.

Silver is a totally different precious metal, since it's widely used for industrial applications. Gold is also, but far less, mostly for plating, dental crowns and other small-use applications.

But silver is far, far less collectable as a precious metal because it is widely used in industry. It also tarnishes pretty quickly. Gold and platinum do not tarnish.

I haven't checked the prices recently, but rhodium might be a consideration, if you can afford it. It's the most expensive of the metals group. I don't know what it is used for, or even it one can buy little bars or coins of it, but it had been holding its value.

Funny true story. In the 1930s a wealthy mobster went to Europe and bought a couple of hundred pounds of platinum in ingots. He needed to figure out how to bring it back without being caught. He also bought a Rolls Royce motor car. Some weeks later the guy arrived with his luggage and the car, and the authorities were tipped off. They searched high and low for the platinum but couldn't find it. They had to let the guy go. Turns out, he had replaced the original Rolls fenders with new, custom-made, platimum fenders.

Myers/Briggs Type Indicator as applies to the value of gold

According to the Myers/Briggs theory of personality types, 25% of the people see around corners, can see what "isn't there." yet or invisible ("iNtuitive").

Economists (especially "big picture" macro) can see the principles at work, and libertarians (who have more than their fair share of economists, physicists, chemists, chess players, and mathematicians) see the future better than most because they tend to be iNtuitive Thinkers (about half of the iNtuitives).

This means that only a small portion of the population has seen the writing on the wall about inflation and the dollar. To compound the problem, most of the folks in government are not iNtuitives (a few work at the NSA and at NASA where they aren't allowed to speak to the public in case they state the Truth).

There might be a few Sensates (who rely on reality as a real thing, not a concept) who see history repeating itself, but most Sensates see the dollar as having value and not inflating (after all, prices have come down for gas, and homes) and they won't buy gold and silver until everyone else is doing it and the price can be seen to be going up like crazy.

If you can see the future, rejoice in the advantage you have over them. Whether you can warn your family and friends (or fellow members of Congress) depends on your reputation for making correct predictions in the past or their loyalty to you.

Sigh. It is particularly galling to "be ruled" by Sensates if you aren't one, yourself. It also shows why the popular libertarian argument about gold and other things, doesn't work: the "Isn't it obvious?" argument.


What do you think? http://consequeries.com/

real wealth is the ability

Real wealth is the ability to produce, gold is good to be used as money, but it does not store wealth indefinately. When it goes up sufficiently from the price that you paid and other products that you need have fallen in price, then take your profit. Use your gold, don't bury it.

I think you are an idiot,

it appears to me that you do not know anything about real money or real wealth. You can't even get the gold to silver ratio right, go refigure it, you are using the wrong divisor its 15 to 1, not 63 to 1.

If something does not make sense to you

then stay away from it, and don't try to explain what you don't understand. You should put your money in a CD. I just love how people tell us how they have perfectly timed the market in G/S, they are just geniouses aren't they.

What does it even matter how many FRNs you can trade an

ounce of gold for? Gold is a bad investment because it's not one. It's a shiny piece of metal that can be indirectly traded for a very similar basket of goods over time. The end.

I agree, but I think its for wealth preservation,

or insurance against a currency debacle.

I agree with those who

I agree with those who believe that gold and silver are heavily manipulated. If indeed that is the case, is there a good argument for strategic investments in the other metals? Platinum, Palladium and Rhodium?

Things are only impossible until they are not.
-- Jean Luc Picard

Things are only impossible until they are not.
-- Jean Luc Picard


It'll come back. With this massive amount of government spending, it has to.

When the stock market starts

When the stock market starts to look safe enough for the large institutional investors to get back in, there will be a large exodus from gold and silver. Watch out for it, and remember that markets recover faster than employment data suggests. You may be severely burned if you are a diehard "metalhead". ;)
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

Google Image Search 'Federal Reserve Gold'

And see pictures of what the Federal Reserve keeps in ITS vault.




One Bar = $127,000 federal reserve notes. So they give Goldman Sachs the paper and keep the gold. I think I will do that myself at the next QuikTrip.

Life, Liberty, Property

Stock market went up and down too

Gold and silver are stores of wealth. The fundamentals haven't changed:
They're printing money as fast as the press allows.
They are piling debt upon debt with programs.
Businesses are laying people off by the millions.
The gold ETF boom is significant because it reflects the fact that a "huge" potential new market has opened up for gold.
More bank collapses and nationalizations look likely.
Fears of currency debasement and the eventual return of inflation are growing, making gold look ever more appealing.

When they print money, get into hard assets.

Look just look at today's chart, look longer range to see the trend. It's not going to hit the highs all in one day.

I want it to pull back

at least a few more times so that I can make some more buys. I've not quite stored up the amount I want.

"The credit expansion boom is built on the sands of banknotes and deposits. It must collapse.", www.mises.org

"Endless money forms the sinews of war." - Cicero, www.freedomshift.blogspot.com

What difference does it make?

What difference does it make what gold or silver is selling for today? If you haven't bought all you want, you would prefer that the prices fall. If you are not going to buy or sell, it makes no difference whatsoever.

I have physical gold and silver. I regret not having bought more only a few months ago when spot gold was $680 and silver was in the low nines. I would love to see it fall into that range again so I could get some more. I don't like my chances though.

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

it may happen Jive.. ive

it may happen Jive.. ive watched these ass clowns manipulate this market for 6 years now.

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

BTW, I did buy in November.

BTW, I did buy in November. Would that I had bought more. My hindsight is still perfect.

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

I've been playing gold for 28 years

Buy low sell high !

Who are those other guys kidding ?

I remember when gold fell from 800 and people thought I was nuts buying at 400 and even 339.

The amount of time (decades) and timing involved, you could possibly make more compounding savings.

The average Joe/Jane is better off just keeping 5 - 20 % of liquid net worth in gold as an insurance policy.

I agree I would be at the

I agree I would be at the 20% mark now tho..

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

liberty....please please

please please pleas......... go read what butler said 2 or 3 weeks ago.. the 1 large US bank jumped in on the short side of the futures market.
where do you think your tarp money is going.. it is manipulation by 1 and possibly 2 large banks.. they hold over 60% of the short contracts on the comex. Butler told us 2 or 3 weeks ago that when they do this the market usually comes down.. for 6 years I have read butler and everytime he read the COT's to show a jump in shorts it wasn't long till they tumbled. just be patient.. I just wish you would have purchased physical sulver and not the etf.. the etf goes by spot price. There was not a bunch of silver or gold that came on the market and switched hands.. it was all paper silver and gold. there are still large shortages of both metals.. at some point the manipulation will be over.. at that time those who hold physical gold or silver will be rich!

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain