With the price fall, I thought I’d just write this and put it up a day early, to answer a lot of questions!
Why did prices fall? Do we have to worry? Are we in dire danger of losing everything we have invested in, and going to the bankruptcy court?
Let’s talk about prices, and of course they have to do with profit and loss. When anyone makes a profit in an investment, it is natural that they might want to take a profit! Logical? Of course. If you bought Ford sharesat $2 a few years ago, you may want to sell at $13, or if you bought Union Pacific at $92, you may want to sell at $139. Reasonable, huh? (I don’t own a single share of stock).
Prices of physical gold and silver, are dependent on the prices of paper gold and silver, as are listed on the futures market. We buy gold and silver to protect us from inevitable inflation. Futures players are gamblers, pure and simple. They buy a thousand ounces of paper silver, betting that in the future prices will go up, they will sell, take a profit, and laugh all the way to the bank…after paying their taxes of course on the profits. Futures players have,
literally millions of ounces of paper gold and silver in play at all times. They’re betting that future prices will be higher than the point at which they entered the market.
When futures players, seemingly all at the same time it seems, reach their profit point, they sell their contracts, and take their profits. This, flods the markets with paper silver and gold. Not REAL GOLD AND SILVER! When this happens, the prices of physical gold and silver follow the paper trail, and go down or up. Is this manipulation? Maybe to a degree, but it is basically the market in operation. Yesterday, gold ’fell out of bed,’ and silver followed it. A great buying opportunity, and our lines were choked all day. Sorry if you couldn’t get through!
When profits have been taken in anything, the gamblers buy in again, and this is true with paper silver and gold. I think (no one has a crystal ball) the bottom is about now or yesterday. We will see, but obviously a lot of paper profits have been taken in the futures markets, and a great buying opportunity has resulted for buyers of physical! NO ONE in their right mind has been selling! All have been buying, quite naturally. Buy at the bottom and sell at the top, is
the old rule.
All free market fluctuate when people buy and sell, take profits, invest, lose, or speculate. It’s natural. Take a profit, buy more when the price goes low, sell at the top, etc. This is why gold and silver will go up and down, and it is normal, and healthy. Do you really think that the prices of lettuce, tomatoes, roofing, tires, furniture, or any tangible thing could possibly go down, other than briefly due to profit taking, when the fed is printing a trillion bucks a year in paper dollars? I’ve been doing this since November of 1977, and believe me, I have seen this cycle over and over again!
When gold got to $400, everyone thought “That’s it. Can’t go any higher.” When it got to $1,000, same thing. When it corrected from some price down to another price, the panic was horrid, but unnecessary. TANGIBLE THINGS CANNOT GO DOWN FOR LONG, IF THE PRINTING PRESSES CONTINUE TO RUN! They have to keep printing, to try to salvage what they have created, and it is literally unsalvageable. It’s a matter of time before the entire paper money world comes to a screeching halt.
I also believe that banks and governments are selling physical gold and silver to try to stay afloat, which also places real money (gold and silver) into the marketplace, thereby lowering its price. People in the entire world are frantically buying up precious metals, because they fear for their economic future. Don’t be fooled by the price cycles. Futures players don’t give a hang about their economic futures. They are mere gamblers, and when they sell, it’s a great opportunity for us!