Gold, silver, oil, today..... WHAT THE?????

[garybeck]

Silver lost 8% of it's value in ONE DAY. Gold lost 2.2% Not that i care but oil lost over 8% too.

i'm not an economist but to me this means the dollar is doing well, usually because there is some sign of the US economy doing well.

did i miss something? is this part of the the post-binladen "bounce" some were expecting to see in the US economy?

[Pab Sungenis]

1. The bubbles are bursting.

Speculation is what drove up all of those commodities, and now the gamblers are taking their winnings and going home. Look for probable further drops.

[slackmaster]

2. Yes, and some of the people who are getting hurt most are the ones who can least absorb a loss

This will be valuable lesson for many people.

[liberal N proud]

3. POP!

[On the Road]

4. Good News --

Remember the last spike in oil -- it got close to $150 a barrel and then plummeted to $50 or below. It is very good news, not just as a bullish indicator, but as a stimulus to the economy. After the oil shocks of the 1970s, oil prices fell over most of the 80s. It is not always taken into account, but it was one of the factors that really helped the economy out during Reagan's terms.

[girl gone mad]

5. Speculation has driven the moves in commodities and, to a large extent, metals.

The economy is not doing well. In fact, it appears that today's very negative economic news led to this sell off.

I've been arguing with the inflationistas for a while now. Hopefully, people will finally wise up and start to understand that our economy is in really bad shape and unemployment, not debt and deficits, should be the focus of policymakers. I'm all for ending the Fed, but we will need more fiscal stimulus.

[Po_d Mainiac]

9. And the sell-off in Ag has been moved by margin increases

on paper positions. This will chase out the leveraged and weak positions, but is not blitzing the hard holders nearly as much. There are still shortages in ASE's, AP's, and Canadian Maples.

This has all the makings of a short term shake-out of the late arriving/margined speculators, and a nice entry for cash/fiat buyers. If the large physical holders stay put, and option positions continue to take delivery, the Comex/Crimex may not have been salvaged.

BTFD/YMMV

[RandySF]

6. What will those tea baggers do

if they lose their shirts on all those precious metals they bought up?

[Art_from_Ark]

11. Enough already about the teabaggers!

Jeeeeeez! Do you not realize that there are people of all political persuasions who have some investments in precious metals? Hell, one of the biggest precious metals buyers I know hates Rush Limbaugh. But he has precious metals because he grew up in a country where the paper money became worthless right before his eyes, but gold held its value.

[Po_d Mainiac]

20. What will you do when your fiat FR issued currency no longer

dominates the basket?

I know plenty of gold/silver bugs. Most are liberals. Most did the majority of their buying prior to 2008.

When compared to Au/Ag the price of oil has fallen. for 3 years. So has coffee, sugar, wheat, cocoe, rice, etc. If you bought PM's in Nov. 08, you would be up at least 300% in silver and 200% with gold. If you were long S&P 500, you are still down

The so-called 'May Day' crash has created two price structures. One for paper metals, and the other for physical. Try buying a 1oz gov't issued bullion coin for spot. Try buying one for 10% over spot..At 25% over you may be able to take delivery.

[AnneD]

34. Count me in ......

I see this as a chance to purchase more at a more reasonable price and not sell what I have. I am very liberal politically and socially but extremely conservative financially.

I started increasing my holdings in PM when I got out of the Stock Market in 2006. Yes I missed some of the market gains, but I missed the 2008 collapse. I got back all I lost in the dot.com collapse. I am very up now. I do not speculate and have my funds spread but this was one portfolio re balance that I am glad I made. Thanks to the SMW thread-I made informed choices.

Read and research for yourselves. When you read some financial info, ask yourself: are they trying to sell me something? Remember, they are always trying to part you from your hard earned money

[Art_from_Ark]

35. There's almost always a down period for PMs in the "months with no 'r'"

I might be looking to add some physical silver in August.

I think you offer some good advice: "When you read some financial info, ask yourself: are they trying to sell me something? Remember, they are always trying to part you from your hard earned money."

That's why I try to get my information from sources that are not trying to sell me something-- usually coin hobby publications and coin discussion groups. It's interesting, though, that Jon Nadler, who is the senior metals analyst for precious metals dealer Kitco, always seems to take a bearish position on PMs.

[pscot]

7. Rumors that Soros has been selling

precious metals have spooked the gold bugs. Oil is sagging because the US economy looks like it's heading for a double dip. Thank Dog for the Republicans. Austerity will save us.

[roamer65]

8. Silver has always been volatile.

I sold most of mine at $46/oz and bought more pre-1933 certified US gold with the profits. Gold is less volatile.

[westerebus]

17. Smart move.

[Paper Roses]

23. I got really up tight at $30.00. Could have held on a little longer but:

things don't seem to work out well for me in that regard. Took all I had and scrapped it at 85% of spot. Did a little better than I expected. Converting weight from a postal scale to troy is not fun!

[golfguru]

10. Simple reasons why Gold-Silver-Oil crashed today

"Jobless claims jump points to slowing recovery"

http://finance.yahoo.com/news/Jobless-claims-jump-points-to-rb-1852891451.html?x=0


"National Home Prices Double Dip"

http://www.cnbc.com/id/42904204

Signs are showing up that economy is not roaring back.
Which means inflation is not likely. Since Gold/silver
etc do best under threat of inflation, today was not a
good day for commodities.

[Art_from_Ark]

12. And yet, on the other side of the world,

gold and silver are both up today.

[golfguru]

13. dead cat bounce perhaps

which is pretty normal after a major move in either direction.

[Art_from_Ark]

14. Dead cat bounce for what? The dollar?

The big buyers of physical gold are in Asia, not the United States. Lots of people on this side of the world see a $100 drop in gold price as a buying opportunity.

[golfguru]

15. Asians have been buying gold for 4000 years

That is nothing new. Lot of central banks are buying gold such as Mexico bought several tons! Lots of economic stress out there. Greece might declare bankruptcy.

[Art_from_Ark]

16. Asians have not been buying gold in these amounts for 4000 years

Gold has not been in constant demand in most of Asia until recently (notable exceptions: Saudi Arabia, which demanded that the US pay for its gasoline with gold in the 1940s, and Turkey)
The recent emergence of nouveau riche classes in China, India, and elsewhere, as well as the lifting of the ban on private ownership of gold in China, has spurred a lot of demand for gold in that part of the world. It's not at all like it was even 10 years ago.

[westerebus]

18. The great quagmire.

Is is an inflation hedge or is it a deflation hedge?

Is it all about paper or is it all about the physical?

Let's say your in the middle of a currency war with your two largest trading partners. Old white guys in dark blue suits doing god's work, mostly pillaging for fun and profit, on one side. Maoist in dark blue suits doing the people's work on the other side.

Say you want to export the inflation out of the commodity markets that the Bernank created to cover the guys doing god's work back to the homeland of the Bank Inc.

First thing is to get the two sides to trade against each other as old white guys like a good profit when the money's for nothing and the chicks are free.

The Bernank concludes you must go shopping and the safest way to convert currency in his view is pump the homeland paper market and allow the excess to flow out ward. So you go with the EU and back stop them, only to find they can spend faster then they can print. So it's back to Bank Inc and they print faster and you can't get a ray of sun light between those doing god's work on either side of the great pond.

Frustrated you let them all know this better stop or you will flush the market backward with all your reserves, well most of them anyway or else. Why does this threat work now when it didn't in the past?
The Yen is glowing in the dark. Huston, we have a problem. What do you mean you can't get that digital drive? Dancing with Stars starts in five, four, three,

Bank Inc looks at this and says, Short everything and have the Bernank call our friends before hand to assure we have our bonus money come what may. A refreshing pause. Good time to met and greet our friends of the People's Republic. Agenda?

Your money is safe with us. It is Bank Inc's paper after all is said and done. Just play the game.

The Bernank controls the in and the de with his key board.

The Bank Inc controls the Bernank.

Currency wars are like national debt, it keeps the politicians occupied.

Debt ceiling?

Austerity?

Micro wave oven.

The money's for nothing and the chicks are free.

Do I need a sarc thingy?

[Po_d Mainiac]

19. And when the straits are dire, exchanges will

raise margins again and again. If that don't work, limit put positions. If that don't work, eliminate all put positions. If that don't work, yank out the bottom limit stops on a down day. When paper metal pars with used TP and hard is scarce, ban ownership.

Silver projectiles kill vampires

YMMV & BTFD

[westerebus]

21. Do we hit the bottom Monday?

Or do we have to wait for Tuesday?

I think the EU has something to divest. Greeks bearing gifts.

Germans with a new hair style. What ever. Should be interesting.

ASE going for mid 40's on the Bay. Or higher.

Some one's going to gack up a hair ball before this is over.

[Art_from_Ark]

24. Markets outside the US are higher so far today (May 9)

Both for silver and gold. Silver's up a whopping $1.70 so far.

[westerebus]

26. Waiting for the 9am "reduce the risk" trade.

So far so good in Asia.

Mother's day in the Hampton's tends to slow down the bankers.

[Art_from_Ark]

27. What's interesting here is that even if the Asian markets are up,

the US market pushes prices down.

New margin requirements for paper silver (COMEX) versus demand for physical silver (Asia)?
I wonder.

[westerebus]

29. Looks that way.

I'll keep my powder dry and give it a chance to pick a direction. I saw a roll of 20 2011 ASE's go for 850$ Sunday afternoon. Everyone passed on the same at 900$. Demand is there and price diversion is there too.

I thought Asians were more into gold. I guess it depends on availability and what country your in.

[Art_from_Ark]

30. I think it does depend on the country

In the relatively recent past, China, for example, has had more of a silver tradition than gold tradition. And there has recently been a lot of buyers from Hong Kong and the Chinese mainland who are snapping up Chinese (and some Japanese) silver coins here in Japan. What's more, Chinese silver imports hit a record last year.

http://www.commodityonline.com/news/China-Silver-imports-hit-record-3500-tons-in-2010-36266-3-1.html

In contrast, there is relatively little interest in silver among Japanese buyers, and precious metals dealers in Tokyo often don't even show the silver price on their boards.

[westerebus]

31. If I were in Japan it would not be for the PMs.

Fine ceramics and porcelain. True craftsmanship.

[Art_from_Ark]

32. The PMs in Japan are a little overpriced

because there is a 5% tax included in the price. But you get the tax back if you sell them in Japan.

As for the fine ceramics and porcelain, I have seen some exquisite pieces, but I wouldn't have the faintest idea on how to price them. At least with PMs, I have an idea of their value, and sometimes I can get decent collector coins for the price of bullion.

[westerebus]

33. You have at least one coin you won't trade.

Or a blade. Or a book. Or a time piece. Or a quilt.

It would be in that category.

Heirloom.

[Po_d Mainiac]

25. In burnable metals?

Nah, the bonfires will continue to blaze.

In physical? We may have finally seen the disconnect. Tough to buy on the dip, when the shelves are bare.

Have the fundamentsls flooding the markets with devalued fiat retreated? BOJ takes a page from the chairsatan's manual. Turbo needs a mere $2T too remain fluid. The PIIGS are too lean for smokin.

The mighty River Miss may be tiring of her un-natural confinement. Drowned reactors enroute to North Africa. Texas burns. Nothing to see. Nothing to see.

The flopping felines are inked on FRN, EUD, and JYN linen.

YMMV,KYPD

[westerebus]

28. And it was written...

The paper shall burn! Thus, it was. In the beginning until the ending. As traders did rent their garments and cry out in anguish.

[AnneD]

36. But it is the....

Zombies I really worry about. What can stop the undead. Silver might work on JP Morgan, but what about the other zombies.

I think gold and silver will continue to climb because a major reason we have inflation, despite what Bernanke says is because the dollar is losing it's value. Gold and silver is a commodity in that we buy it now with increasingly worthless greenback. When a new world reserve currency comes about, you will be able to use dollars for toilet paper.

At this juncture, buying PM's is almost a no brainer. I am very long on the PMs.

[golfguru]

22. This Mcjobs economy is ailing

The debt to China is growing
The interest payments each year are growing
McDonald's added tens of thousands of jobs last year
That about sums up our 3rd world economy.