Another tiresome plunge, why is gold down so much?

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DoChenRollingBearing

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I checked the usual sites (Turd, ZH, kitco, 24hgold) and nothing yet about gold's majestic $30 dump...

Did they solve Greece?
 
Sorry to back to back post, but a few thoughts on this.

1. QE3 has not been ruled out, however we know they are printing behind the scenes without formal acknowledgement. Matter of fact, the door is still wide open for QE3 when Operation Twist 'expires' at the end of Q2 2012. (correct?)

2. Silver and APPLE are where the winnings are for the 2012 year so far it seems. What are the traders and speculators going to cash in on to collect their winnings if the Greece situation really rears its' head over the next few weeks? I'm honestly expecting this to present a buying opportunity better than Gold 1650 or Silver 33, however I don't have anything to back it up besides a gut feeling. However I have seen charts saying that if silver goes down it's next major support level is ~$26, and then ~$22 after that. Will we see that big of a drop though remains to be seen. Hence, dry powder and waiting like a freaking tiger in the grass as it watches a gazelle at the watering hole.

3. The Dollar index is back above 80. Euros are going to be hurt even more as Greece CDS unfold as far as I can tell. Japanese are still trying to force their Yen down more, so the dollar probably has no where to go but up. Last time the dollar was at 80 in the past 6 months, silver dipped to 26 and Gold was 1600 just after Christmas, if I recall correctly. Fed needs to keep the gains coming with the economy, so if the dollar gets too strong and we lose ground against the other currencies, I think their hand will be forced and QE3 will take place.
 
Sorry to back to back post, but a few thoughts on this.

Never apologize for a back to back post when it is something worthwhile to read!
 
Perhaps the big banks are selling off their paper because they need cash desperately. Perhaps it is concentrated selling by JPM because they "know something" we don't know about yet, so they need to cover that pile of shorts.
 
I am short on PMs in the short term while EU troubles continues to prop the USD.

I am long on PMs overall.
 
ancona - brain fart? You don't cover shorts by selling!

Myself, looking as if the time is near to get some more phys into the core holdings.
1600 looks like a possible bottom to me too. ??? But I often fail at bottomg picking - whatever it is never quite reached my target, or does, bounces a little so I buy, then continues down. Hard to see how gold could go down too much more, though.

I don't have *any* coins yet. OZ's are kinda large for barter, but the premiums are more reasonable? Suggestions? Apmex?
 
Well.. personally i'm a bit more bearish until the market gives me reason not to be. I definitely plan to keep stacking but i'm not overly bullish. Mostly because I think the stock market is probably going to roll over here soon. Plus, the gold shares keep getting smacked as expected and it's probably got another 4-7% downside risk. By my kids birthday, April 4th, I think the bottom will be in and probably retested.
 
DCFusor said:
...
I don't have *any* coins yet. OZ's are kinda large for barter, but the premiums are more reasonable? Suggestions? Apmex?
Click to expand...

Are you talking gold here (not silver)? Some thoughts...

bars vs. coins for traveling / declaring

escobar's gold bullion thread

~~~

I hold various silver products as insurance for barter (SHTF) situations. I see gold more as a longer term wealth preservation, so I personally don't worry about "too large to barter" as an issue. I would go for least premium were I buying today. I bought a few Krugerrands in the past (lower premiums than Eagles and very liquid overseas markets for them), but I will likely be buying bars from now on.

I would suggest looking at goldmart and tulving for gold purchases over apmex. They both had better prices (lower premiums) last I checked.
 

Yes, I concur with the Goldmart recommendation. I've been planning on using Goldmart for my next purchase, because it is not large enough to satisfy Tulving's minimum, but is cheaper than APMEX, who I was using.
 
Thanks for the tips! My situation is such that I don't think I'd be trading for real little stuff much - around here that's a handshake - or a glance - and owe ya one later rarely even having to be said. It's a pretty cool place to be.

That's what I would have used junk or better silver for, but here there's just little need for that it would seem. Bic lighters, booze, tobacco (and seeds!)...ammo. Or just use of my machines to do a repair...
Favors - a very broad category, but I'm equipped to give and receive those real well these days.

Stuff like a backup generator, or a big can of ammo, or a month's food is more like the trade sizes where things begin to change hands both ways. While I have extra of all those in stock (and other things), those seem to be major trade items in the 1/10 oz of gold range (or a lot more silver). I don't see buying a new car with gold, and around here, a decent used one would go for an ounce (cars are cheap here compared to almost everywhere). For a "maypop" car, an oz would be far too much, and what would you make change with?

I hear you about the wealth preservation (or just plain hiding it, which has some attractions if you're perceived to have "deep pockets"), but any wealth you never use is wasted in my own view, and there's only so much life left in which to do so, so I may not be thinking in the classical "long term" here. In not too many decades I'll be driving a wheelchair, not a hot rod.

Thing is, most of my PM's are in what you'd call "exotic" forms - many gallons of gold (and silver etc) plating solution, physics stuff - foils, powders, odd fabricated shapes. I just seem to be feeling the need for something immediately recognizable by almost anyone who might have something I want bad at a time when everything is becoming hard to get. And it looks like gold is kind of going on sale for awhile...
 
Interesting that gold and silver are up today (even adjusting for the dollar weakening) while oil is down (adjusting for the dollar weakening):

 
We need a close back above 1720 to realistically call the correction over. I'm not holding my breath.. I think it at least last till the 1st week of April and possibly into mid-month.
 
I read a piece explaining that the ECB is demanding more collateral for loans to teh EuroTBTFB's. If so, why would they sell their most fungible assets?
 
ancona said:
I read a piece explaining that the ECB is demanding more collateral for loans to teh EuroTBTFB's. If so, why would they sell their most fungible assets?
Click to expand...

Why is JPM short so much silver?
 
I have a question about that. I know JPM inherited a large silver short awhile ago, hear about it endlessly.

How do we know what their current position even is? I know as a trader, I'd have slowly ditched such a potentially losing position, and sure wouldn't have it now if I were in the same boat.
 
Old business DCFusor (last page)!

My gold is really for my child (or any grandchildren we may have), not just for SHTF.

Lots of the rich have gold that has been sitting there for generations... As FOFOA´s minions say: ¨We shrimps can walk in the footsteps of giants!¨ And he is talking about buying gold and retaining its wealth for LONG periods of time. And gold moves through time as well as space...

***

I am in Peru now (on bearing business, what else?) so I will be around a bit less, summer is just about to finish here...

And ¨Olluquito¨ is for dinner! YUM! You may to Google that one, I have NEVER had it in the USA...
 
I know, DoChen - your goals and mine aren't the same, that's all. We can still pursue them through gold, though. I have no heirs, and no prospects of any.
 
DCFusor said:
I know, DoChen - your goals and mine aren't the same, that's all. We can still pursue them through gold, though. I have no heirs, and no prospects of any.
Click to expand...

I'm just down the road if you need to get rid of that cumbersome metal.
 
Right now, all that "cumbersome metal" is mostly in the form of cyanide compounds used for electroplating. Kinda makes it hard to steal even if someone actually knows what it is in that drum. But it's a PITA to trade with in that form, which is why I'm after something a little more conventional, too. And in other cases, not too many people would appreciate the value-add of a silver-palladium alloy in closed end tube form (used to purify hydrogen isotopes in the lab). Stuff like that. A little TOO safe in some ways. No one realizes its value.

Appreciate the invites, though
 
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