Guns are usually going up in price. Just saying.
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Gold and silver prices are down
- Thread starter Rider
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Guns are usually going up in price. Just saying.
Yep, and here is the reason: Indian gold demand down 29%. Hmm, a 1% tax, 22% devaluation of the currency, and a 4% increase in the duty tax, followed by a 29% decrease in demand...correlation anyone?
What you are seeing across the commodities markets are prices crashing due to strengthening of the dollar. Since most commodities are priced in dollars, they are coming down hard. This is good for us (US?) in the short term because it presents a buying opportunity and means lower prices on things(at least in theory) but bad in the longer term because it means the global economy is going back into the toilet and our exports will slow dramatically. Oh, also, Obama's $15.7 Trillion in debt will cost more to repay.
No, with stronger $ debt will cost less to repay. Well actually because the debt is in dollars it will be the same amount, but interest rate on that debt is less likely to increase = potentially lower overall repayment. Also it is not Obama’s debt. It is our debt. And his administration inherited $10+ trillion in debt. Of course his admin will double that by the end of his second term and the total national debt is much much higher than the aforementioned numbers, but that is a separate topic.
As for India this India that… it is only a small part of a much larger picture. Many honest analysts were expecting and predicting this slide long in advance. I even remember posting on this forum (3-4) months ago that the silver is predicted to hit $26 before summer. IIRC, at the time silver was around $35 and going higher.
As for India this India that… it is only a small part of a much larger picture. Many honest analysts were expecting and predicting this slide long in advance. I even remember posting on this forum (3-4) months ago that the silver is predicted to hit $26 before summer. IIRC, at the time silver was around $35 and going higher.
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There is definitely an opportunity here. The pop yesterday was because of the horrible employment numbers, but the price is at a low for the past several months and seems to be a good level to buy.
There is a disconnect between physical and synthetic(ETF, Futures) demand, so while physical demand is high, people are selling the paper exposure to fund their buying into the stock market.
There is a disconnect between physical and synthetic(ETF, Futures) demand, so while physical demand is high, people are selling the paper exposure to fund their buying into the stock market.
This is a HORRIBLE time to invest in precious metals, especially gold and silver. You invest in a medium when prices are low, you don't wait for prices to run to an all time high and then decide "prices are going up, this is a good time to invest."
Too many people who have no idea what they're doing think PMs are a magical investment that automatically goes up every time the stock market goes down. Even worse are those people who keep gold and silver on hand and somehow think it's going to function as a medium of exchange.
A lot of people thought the same way about PMs in the late 70s, and when prices crashed in 1980, they got hosed. In real terms, prices still haven't recovered from that crash.
PMs are the next big economic bubble, and the bubble is going to burst pretty soon, and it's not going to be pretty.
Too many people who have no idea what they're doing think PMs are a magical investment that automatically goes up every time the stock market goes down. Even worse are those people who keep gold and silver on hand and somehow think it's going to function as a medium of exchange.
A lot of people thought the same way about PMs in the late 70s, and when prices crashed in 1980, they got hosed. In real terms, prices still haven't recovered from that crash.
PMs are the next big economic bubble, and the bubble is going to burst pretty soon, and it's not going to be pretty.
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For those of you considering gold and silver in "investment quantities" (Tens of $K worth or more, not buying a handful of rounds or coins from a storefront dealer), remember the tax situation. Unlike stocks that enjoy long term capital gains benefits, precious metals are "collectibles" and all gains are taxed as ordinary income. Sure, you may sell a few ounces to Ziggy off the books, buy try that with $50K of your metals portfolio when it's time to cash in and you're dancing with a felony.
I'm looking at a 15 year horizon so I'm in.
F
Finalygotabeltfed
Know your "Ziggy".
You can't eat gold or silver, or protect/defend yourself with it.. Guns are worthless without ammo, maybe ammo is the new answer in these current times to collect.....just a thought
yanici
NES Member
The criteria for a great conductor takes other things into consideration. Oxidation for example....you can have a switch with exotic super conductor contacts, but if those contacts corrode in air to the point where the switch won't function you have nothing. Golds properties make it very desirable in some applications.....silver also has unique applications but suffers from oxidation issues.
Lots of good info
Gold you can’t eat it, doesn’t conduct electricity well, not good for defense.
I would be willing trade to boxes of chocolate ammo of equal weight for your gold.
Hurry before anyone else finds out. Time to dump that useless stuff.
Chocolateammo Chocolate Novelty Products
Disclaimer Just found this site by Goggling chocolate ammo
WallHack
Banned
I have to file an FA-10 on that? Can I even buy one in MA? Is it on "The List?"
There are a few problems with ammo:
1. Ammo takes up a lot of space and weighs a lot - not easily transportable.
2. Ammo comes in many difference sizes and types, each specific to a gun. Yes, there are popular calibers, but it's not fungible.
3. Ammo can explode, corrode, and have other bad things happen to it when not stored properly.
4. It is difficult to determine a rate of exchange for ammo in a barter situation.
My point being, yes, ammo has a very high value in dangerous times, but it is not a highly transportable form of readily trade-able wealth.
Well, I think that a lot of people are looking at it from the perspective that it's at a 2 year low.
Would you care to provide more insight into your assertion with respect to a major correction? Alternative suggestions?
not new guy
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![[laugh]](/xen/styles/default/xenforo/smilies.vb/012.gif "Laugh [laugh]")
What else does your crystal ball tell you?
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Another thing to keep in mind is that 12 states have either passed or are considering making gold and silver legal tender. Should that happen, it will create an explicit exchange rate and medium that will provide a framework for trade. So to the extent that people worry about how to value precious metals when used for currency, the states might just solve that problem for you, in addition to eliminating the objection people make that thinking silver and gold are money is stupid.
If the general public ever starts panic buying physical gold and silver it could be cleared out within days or possibly hours.
We have all witnessed the ammo shortages this year. I see no reason why bullion wouldn't be much different.
I think it makes sense to buy a little each time the price dips.
We have all witnessed the ammo shortages this year. I see no reason why bullion wouldn't be much different.
I think it makes sense to buy a little each time the price dips.
The states that have passed the use of gold and silver as legal tender don't have the reserves of gold or silver to back up their codifying of its value.
A friend sent me this:
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This is only an issue of those states issue scrip that is allegedly backed by gold, but is not an issue if "legal tender' simply means that physical gold is accepted as payment for debts.
What's interesting is the authors comments seem to be I conflict with respect to whether good should go up or down. If both gold and equities are overvalued, and you think inflation is inevitable, you'd think that would make the case for good.
Anyway, it bears occasional mention when these threads come up: no one here is suggesting you pile into gold and silver at the expense of all else. You should have your bills paid, your savings buffer, retirement plan finded(if you think that's appropriate) and if you prep, all your other preps should be squared away first.
Investing in physical gold and silver should be the last place you put your money after taking care of everything else.
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FrugalFannie
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Likely, they are hoping to wait until prices go up to sell what they have. When prices drop rapidly they lose money if they sell.
not new guy
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A local dealer said that all 3 of his usual silver sources/dealers were completely out of stock.
I got an order for 20 eagles in at Gainesville this morning before work. An hour later they had a notice of delayed delivery and by the end of the day when I checked again, they were showing "sold out".
Yep.
You'll also notice that the spread has widened from about 3 over spot to 4 over spot for ASE's. I've heard/read lots of mixed opinions, but I'm inclined to see if prices settle a bit so spreads come back down. Everybody buying now is in a panic because they think silver should cost much more than it does, but it's really only worth what the market says its worth.
All the survival sites are doing their readers a disservice by telling them to load up at bargain basement prices, and completely ignoring the bigger picture with respect to market forces. It could be that this is a once in a lifetime opportunity. It could also be that we're entering a bear market for metals.
There does appear to be a disconnect between physical and synthetic markets(if zerohedge and others are to be believed), but prices tanking means there are a lot more people selling than buying, so eventually supply will be available. As a colleague pointed out yesterday, SLV and GLD are backed by physical metal, so somewhere out there someone has a lot of bars to get rid of.
My .02 is buy some now if you want, but keep some powder dry. Prices have to stop going down before you can call a bottom, and a number of People were calling it on Friday.
Wow, I wish I had some money to buy silver now. I didn't think it would go this low again.
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