What's going on with gold and silver?

I've watched gold and silver carefully since 1988. It is true that the typical big cycle is down in summer and up in the fall and late winter. For example, last February 2007 silver hit its late winter high around 14.75 and then fell, sometimes precipitously, through the spring and summer, until mid-August (2007) when it reached its late summer lows around 11.00. That was a great time to buy a lot, as the next few months saw progressive increases to finally reach a mid winter (2008) high over $20.00. From year to year I'm never sure the cycle will be the same, but it always has been. And now it's following it again. I'm not saying it will do this year after year, but that's the trend the last several years. When it goes on sale, like today, buy. When irrational exuberance for buying hits, then sell. Doc

gold stock to buy? I know it's better to have it on hand....but my dad made a good point...who will you sell it to if you had to? THey will always charge a premium....and if I needed dollars, then I'd have to go somewhere locally and sell, right? A relative suggested GLD - on the stock market....this would be short-term of course....when gold rises, I could sell it. Buy low...like right now...sell high.
Any suggestions on buying gold through the shares on the NYSE...(GLD?) (temporarily until the price goes way up!)...
or direct me to a good forum where I can learn more.
Much appreciated :)

Jim Sinclair (jsmineset.com) has predicted that by the end of the first week of May, the downward pressure on gold prices will be over. There will be some horizontal movement and even some wild fluctuations where your life might seem to be passing before your eyes, but it should be upward and onward to at least $1,650. The way our government is behaving lately, the price in dollars could go to infinity.

Update: This just posted by Jim Sinclair today.

Dear CIGAs,

Let’s cut to the chase:

1. The potential for the bottom of the gold price being today is 75%.
2. If it is not today, then the bottom for the price of gold is very close by.
3. The downside in gold will be in by the end of the first week of May or sooner.
4. On the 8th of May interest will increase in junior precious metals shares. This interest will first be in the most meritorious issues.
5. Probabilities support the price of gold going back above $1000, failing, and on the third try making a new high.
6. The price of gold is going to $1650.
7. The euro is going to a minimum of 2 to the dollar.
8. The USDX will trade at .5200
9. Precious metals shares will be the darlings of the market prior to 2011.

They are down because we have a "short window" rally. Nothing goes up or down in a straight line - including our economic demise (until the bottom drops out completely). After the G7 meeting a few weeks ago the international financiers expressed "concern" about the effect of such a weak dollar. That indicates, in my opinion, that they are now stepping into the market to help push the dollar up. Their actions in conjunction with the Fed walking a tightrope to balance interest rate cuts correctly is leading to more confidence and strength in the dollar, again, in this short term window. However, to assume that this will continue to be the trend in spite of the reality that not a single thing has changed with what truly troubles us economically (which is the unravelling dollar oil hegemony, and our unmanageable debt) would be foolish.

I wouldn't sell any metals at all if I were you. What many people don't understand is that the true value of metal will not be reflected in the price until it's too late. This means that the day to day price while the music is still playing will fluctuate against other factors. Over the longer term, however, things with the economy will continue to deteriorate which will pressure the metals up again, but the interesting thing is that even this means essentially nothing. The only way this gives you benefit is if things get drawn out over a very long space of time, and you have the chance to sell off some metal for a "paper money profit". At the point where the price of metals will skyrocket up will be when the economy is coming apart at an accelerated pace, which means you would have to be careful exchanging metal back into paper for a temporary profit even then. I hope that makes sense.

Gold goes inverse to the dollar. Currently the dollar is rallying because markets are based on perception and the mass perception is that the Fed is done cutting rates for now, the worst is over and we can go back to la-la land.

Give it a couple of weeks for reality to set back in.

Gold will go NO LOWER than 825-830 in my opinion. Then it'll march back to 1000.

Why on earth would you sell? How long have you been on dailypaul?

Buy low and sell high. However, I wouldn't care what the price is - I will continue to buy! It's things like these that tricks the minds of those living in scarcity.

Apparently not long enough to learn the lesson.

If you don't learn the lesson, it will just keep coming back and hitting you harder and harder on the head each time. Then you'll get the message - but will it be TOO LATE?

let me get this straight...you won't sell it if it's between 16 and 20, but if it goes down to 15, then you'll "get rid of it"? Strange. Seems to me the thing to do is sell it at 20 and buy it at 15. And what will you sell that mined useful refined metal for? A wad of cotton pulp sprayed with green ink?

That this happens this time of year. They say it goes down in the spring/summer and comes back up. Don't know if it is true... but I'm hanging on to mine and just figure it is a good time to buy some more!

Christi
Proud Ron Paul Supporter

I believe of course it is being further manipulated, therefore I will continue to buy low and sell high and keep most of my silver and gold.

Let it go back down even to 5 bucks an ounce and I'll just keep buying more

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Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty, or give me death. Patrick Henry