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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.


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No free market, but what has real value?

The fact they are so desperately trying to convince us all the gold is not real money any more ought to give you some hope. Also, why manipulate the market of a worthless commodity?
I am a silver bug, myself. I deal with what I KNOW. I KNOW that the medical properties of silver are about to create an overwhelming demand for it. I KNOW the biggest mines in my state are closing - yup, closing. The biggest silver mine got sold to the Chinese. I know that the mints cannot keep up with the demand for bullion. Why can't they keep up? Supply and demand IS reality, even when the market is no longer free.
It may only be "worth" a dime, but real gold has real intrinsic value, and silver has even more for me, personally. After I wipe my arse with a devalued FRN once, what good is it to me next time?

Truth exists, and it deserves to be cherished.

Interesting that China

Interesting that China bought the biggest silver mine in your State. They control many of the FRNs and now are buying up silver to control that money too. Perhaps we will have to come up with another option. Is there any excaping the bankers or the Chinese, or are they one and the same?
grant

if they are buying ... i

if they are buying ... i would be too!

"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

There is an escape route

1) States decouple themselves from the dollar, using Article I, Section 10 to run their state budgets in Gold/Silver.

2) If enough state economies do this, China is left holding a bag of useless T-Bills, with no real bully power over the US economy. What, our kids owe you 50 quintazillion FRN's to fulfill past presidents' promises? We'll print it for ya. We'll even use ink made in China.

Life, Liberty, Property

*NICE* falstoffe!

I like that idea!

Gold is up 42% since late

Gold is up 42% since late October.
Silver is up 46% in the same time period.

Gold has tripled since 2001.
Silver is up over 2 1/2 times in that period.

Ĵīɣȩ Ɖåđşŏń

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

Gold and Silver are frozen wealth

They are not meant to be income producing, capital gain producing, or speculative. If you're looking at the price of gold in dollars, and thinking you're ahead when it goes up, AGAIN, it's just the value of the dollar going down. The credit collapse has wiped out trillions of 'dollars' and China still hasn't dumped their reserves. So there is some deflation right now--until we pump money back in to reinflate, and Washington DC is working on that hard.

But in the long run gold-silver hasn't changed its value in 2000 years up OR down. One ounce still buys a suit, ten-twenty ounces buys a chariot and horses. Measured in Silver, One silver dollar coin buys a meal at Applebee's same as in Chaucer's day. Two silver dollars still buys a "Two Dollar" (crack)...never mind. Commodity prices haven't changed in 2000 years.

Life, Liberty, Property

if you have not noticed

if you have not noticed lately... the value of gold has gone up with the value of the dollar recently.

"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

When you think about it, you make a pretty good point

As long as the market is manipulated, silver is controlled. Manipulation will not end voluntarily by the clowns running the Country. When the game gets out of control for them, look for martial law. Who says they won't come out and confiscate all silver and gold, you know, for Homeland Security reasons. They could come up with dozens of bull%$# reasons. And remember, they have the laws, the judges, the prisons, the courts, your financial info, your checkbook, and the guns to back you down. I heard one sage planner suggest buying "real" consumables like Scotch!

alan laney

yes and it gets better with age..

if you don't drink the profits...
I often get some nice single malt imported as a gift at the end of a case. I for one have not been able to resist opening a bottle of vintage Scotch yet.

Here in BC Canada it costs twice as much as most other places. However I would buy it if times were rough and I could afford it, so if you are selling, I am buying. Now can I interest you in some home made buffalo jerky to wash down with the scotch?

cw

It was due for a correction.

It was due for a correction. Probably still is. Nothing goes straight up every day.

Gold is up 42% since late October.
Silver is up 46% in the same time period.

Gold has tripled since 2001.
Silver is up over 2 1/2 times in that period.

Ĵīɣȩ Ɖåđşŏń

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

Because the world still sees

Because the world still sees the dollar as a safe haven. For now

In Roman times

1oz gold coin was buying a nice outfit from head to toe.What is that same coin buying now?
For about a $1000 you can pretty much get the same -a nice suit,shoes,shirt etc.Gold hasn't lost its value.People maybe did.

In 1980 I took all my silver

In 1980 I took all my silver coins and sold them when the price of silver hit $50. When it was around $5 I bought it back. When gold was around $300 I bought, now I am selling gold and buying what I think is underpriced. Sure you can bury your gold. But if you spend it, there will be an oportunity to get it back. The secret is not to be greedy. Just have to keep working and keep money working.
grant

Give it time...Don't despair...

The precious metals are long term investments/hedges against a total collapse of the immoral paper "standard."

Don't worry about the day to day flucuations.

That has been happening for 3000 years!!!

It is a sign of SOUND money because it changes with the supply/demand as it should.

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul

Dollar is strong now (it

Dollar is strong now (it gets stronger the more bailouts you have it seems) but in the long run you will see the dollar fall in value like a stone, mark my words.

~~
Teach a man to fish and you feed him for the rest of his life.
Teach a man to phish and he'll clean out your bank account.
~~

they are a good store of value

Fortune Favors the Bold

relative to everything else.

Fortune Favors the Bold

Have you ever heard one of

Have you ever heard one of those old time cars that sounded like they were barely holding on... like they were just about to run out of gas? It's sounds something like "kaplow put put put cabookbukbuk plow kaputput ptsss put put brrr kaploop dud dud bleh... pssss...." Well, that's pretty much what our economy is going through right now. No smooth running engine at this point. Volatility is probably to be expected.

...

I doubt it can be

I doubt it can be manipulated forever. But, I think that gold and silver will go down more before they skyrocket. I think deleveraging in CRE and ARM defaults will create more temporary deflation, which is bad for silver especially. But, after that, hyperinflation sets in and gold/silver skyrocket as a result.

I think I read

the IMF was going to dump 400 tons to help places like Iceland etc borrow money. This was a few weeks ago maybe they finally did it. My husband also read the India was dumping gold to buy Platinum. Hmmm, maybe they are trying to find something that is not manipulated. It's all a gamble that is why I like variety. Moderation that way your losses are kept to a minimum at least hopefully. I have learned the hard way what goes up comes down.
It's all about timing, do you have rhythm? LOL

Prepare & Share the Message of Freedom through Positive-Peaceful-Activism.

Exactly, you said it... The bankers own gold...

So why would they ever want it to go down??? I have a feeling that the dropped price in gold this week has something to do with the "Stimulus" plan. Stimulus plan passes, gold goes down... same thing happened during the passage of the last "stimulus". Its obviously manipulated, but the price will always stay up, because they own it, and they're not going to just let it drop. The reason they bring it down from time to time is to falsely make you and other countries invest in the dollar so the US Dollar doesnt go through the floor and they loose all control.

"Do you want to know who you are? Don't ask. Act! Action will delineate and define you."
Thomas Jefferson

www.LibertySpammer.com

"Do you want to know who you are? Don't ask. Act! Action will delineate and define you."
Thomas Jefferson

www.LibertySpammer.com

Why don't we manipulate the dollar?

If you research you will find that not only do banks own gold, but they own a controlling interest in most mining companies which hold mineral rights. So there is little excape from bankers. In fact, for banks to lose the power to manipulate the price of gold, people would have to manipulate the price of dollar. How do we do this? Buy going out and spending our gold on local products. As gold circulates, it stimulates the economy. If it competes with the dollar, by passing from hand to hand, then the dollar loses value. Eliminate the middle man, use your gold as money, it is your Constitutional right.
grant

You have to realize

You have to realize that people who advocate silver/gold are talking in LONG RANGE terms. In the long-range, just look at the value of a dollar over time. The government can steal via inflation, so they do, and that guarantees gold/silver will always be up in the long term. The question is, how long, and whether it even matters to you in your lifetime, because "long range" could possibly be decades with punishing drops in the short-term.

every time the price takes a

significant drop I go and buy more. I buy whatever I can afford, but always physical gold and silver. I often go without any spending money for several days at a time, payday to payday. The days of manipulation and games will come to an end. The Metals will stay the same size and weight, they can be shined up and will always have value.

Of course this week I am going to buy new fishing gear instead, because my coin dealer has so little available at the moment.

Remember the law of supply and demand. It will be back. And I will have something to sell.

cw

SteveMT's picture

Right! Think of this as a buying opportunity.

This weekend may be the time to pick up some good buys.

I would say to take

I would say to take advantage of the price right now and go out and buy supplies, tools or if you like fishing gear. Then buy it again when the price drops again. If by chance the price goes up you can sell extra supplies, tools and fishing gear.
grant

Its a balancing act.

Over the past two years I have bought metals at all different price levels but I am definately ahead of the game. It costs money to sell and I think I would lose around 20% just because of the buy/sell differential.

At the same time I have been stocking up on necessities. I have a list but its probably way out of date and needs updating. Anyway this week its fishing gear, plus its almost time to devote some weekends to honing that important survival skill... if you know what I mean...the lakes are calling my name.

cw

I agree, it is a balancing

I agree, it is a balancing act. As it is important to use any profits you get from investing in gold for honing your skills such as catching fish. You can think of the fish as the interest you earn from the investment you made in the fishing gear. Take care of the gear and it will bring you a lot of profit.
grant

Right on point I like your analysis...ha ha

except of course for the profits which get spent on the beer...but it makes the fishing trip that much more enjoyable, then I stay longer and catch more fish so it all works out...

hmmm

cw

I have to confess.

The fall in the price of gold and silver was not the fault of the central bankers. It was my fault.
As soon as it hit $1000, I went out and traded a bunch of gold coins and went out and bought supplies.
I promise it won't happen again. Please go out and buy up all the gold and drive up the price again. This time I promise not to spend mine, honest, don't you worry.
grant