Gold and Silver takes an EXPECTED tumble downward.

[TwoShadows]

For those of you who have not been watching gold and silver the bubble busted in the last few days. Don't fret, or plan on selling right away, as they will rise again. I wanted my dealer to get me some Eagles today but he just smiled knowing NO ONE is going to be offering any silver at these prices for quite some time. Check out KITCO for this end of the week shocker!!!

[Nighthawk]

SHOCKER is right! I thought I was seeing things when I looked on Kitco! I had to do a double-take!

[TwoShadows]

Be a REAL good time to buy some silver but finding someone to sell might be a problem. Now we can look forward to seeing prices rise again as that is what it will take to free up some silver. Gold is still priced very favorably unless you have been buying in the last 6 months. Give it all a few weeks to recover and in the meantime, if you can find anything for sale, buy it!

[KurtS]

I have been tracking Ag/Au spot prices since late 2005, when I noticed the beginning of a speculative run. Whispers in the market clued me in.
Such runs tend to feed themselves as word gets around and people jump into the game. Higher prices attract more activity and the cycle continues. That much is probably obvious, I suppose? 

A question in my mind might be: how much of this spike has been due to enduring supply-demand, or contributed by dollar devaluation and/or otherwise speculative activity?  Seems to me that unless you're a metals insider, which I'm not, I haven't a real clue as to how far values may retrace to 2005 or earlier. On that cautionary note, I sold all my silver back around $19. 

Just random neurons firing here--nothing I really know, lol.

[TwoShadows]

I sold most of my gold, due to job loss, over 2 years ago. Wish I had it back a few months ago. I am currently in a re-building on my silver bullion stash but, needless to say, I haven't bought much this year due to climbing prices. I would be willing to buy now but it will take some time before dealers will be willing to sell at todays prices. Most of them are sitting on bullion that cost much more than todays prices will sustain. Hopefully prices will sit in the $12 to $13 range for a while to free up some silver onto the market. Every dealer eventually must see that cash coming in.
In the mean time my wife and I have focused on AU and Unc. Morgan Dollars. While they have increased in price somewhat they have remained a solid and stable investment both in the silver and collector market. Pretty safe place at this time. Both of us still grab an additional silver coin (Kennedy halves and Euro's) if the price is right. Always looking for a little silver to put away!

[AdamL]

A dealer that my dad occasionally buys bullion from is charging more for silver eagles than he was when silver was over $17.00

I was at a coin show yesterday and saw a guy selling massive quantities of bullion to a dealer. I'm still wondering if the guy was clueless, or if he panicked and decided to unload everything.

[longnine009]

Indeed, the dollar is firming up but....put not yeah faith in Laural and Hardy to make any kind of long term or real fix. They are simply recycling plan "A" from the 70's into today and calling it plan "AAA+++." IMO,  it won't matter anyway in the long run if we have inflation or deflation.

For the last 20 years our  so called economy has been nothing but a flim flam of financial dog $&^#  and statistical delusions that is now over. Done, stick a fork in it. And now what? No industry, no factories, no jobs no nothing. *WE* let  politicians sell us out to china, nafta, wallstreet and the "patriot act." Now we're on our own and that's the problem. Everybody wants the government to steal something from someone else and give it to them. Like or not, *we are on our own.*  But it may well take decades and lots of turmoil for that to sink in. Turmoil has always been good for metals.     

I might take a look around ebay tonight for some art bars. I really miss them and haven't bought any for several years. They should be a lot lot lower now because dealers  would  be factoring  in lower future replacement costs, right? Yeah right!

[longnine009]

Has anyone heard from PaintYourWagon? I hope he didn't get caught in the lurch. 

[scottishmoney]

Has anyone heard from PaintYourWagon? I hope he didn't get caught in the lurch. 

I know he haunts another forum, more discussion on metal, will have to give a check there.  Like me, I wouldn't believe he is even fazed by the latest market thing though.  It is a correction, but events down the next weeks, on up to the election in November could be decisive factors in pricing.  One factor that has already driven prices is the shortages of both gold and silver.  The supply dried up whence the price went down.  There are two factors, holding by institutions etc. not willing to sell into this market, and bargain hunter buyers.  I noticed the gold downtown largely disappeared in the last week.  Only a few unattractive or not popular foreign pieces remain.

[longnine009]

Yeah the down turn in metals has been expected for a few months now. Hopefully PaintYourWagon is too busy trying to buy gold on weakness, which doesn't sound too easy right now.

[TwoShadows]

Starting to worry a bit about our friend in Belgium. His expertise in the gold market is worth listening too and his friendship has been just as valuable as real gold. Hope all is well with him and his family.

[scottishmoney]

Notice that PM's are correcting in the positive on continuation of the USA vs. Russia in the Georgia situation and fears about oil from the effects of the TS Fay.

[longnine009]

PM investors could be pondering why the Russians are digging in when they are leaving?

Or maybe they're worried bush will go to war with Russia to liberate Georgia from Russian tyranny and bring them  glorious democracy with an army that apparently Ben Bernanke will have to conjure up out thin air for him.

"Come on Ben you conjured up stuff before. Conjure me up 20 divisions."

Maybe  NATO might do something? Seems like it can only be good for metals if not very entertaining. Are they too busy with their lobster brunches in  UN  to noticed Russia is practically reading from the same script that bush read from with Iraq? Just cross out WMD and insert  genocide. They claim a city has been razed by Georgia. Sounds like a Halicomrad  might have to re-build that sucker. We might be here for awhile but will maintain that pipeline for you--comrad...

[scottishmoney]

They even used terms like "Regime change", "morons", I am surprised that "Old Europe" and "Freedom Fries" haven't reared their ugly heads.

Russia is posturing, plain and simple.  Pootie Poot and his shrimpy puppet boy Medvedev are playing a game and they will get away with it.  Europe is got it up the bum, they have to pay for Russian gas, so you can expect that Europe is not going to do much more than a little lip service.  And what is that guy that was born with the silver spoon in his mouth going to do?  Mouth off through Condi Rice, and hide out in Crawford away from those narsty reporters.

[longnine009]

I agree. They seem  be deliberately absurd about it too. Russian politicians worried about genocide? What kind of joke is that? Stalin murdered 50 million of his own people.  They're telling bush they can invade countries and hand out absurd sophistry just as good he can. And they're telling Europe if they want to stay warm they better start getting cold to idea of an ABM system. And they probably will.

[scottishmoney]

Maybe absurd, but I blame the current administration in the USA for this.  Remember "I looked into his eyes and saw his soul"  Stupid dumb&$$ got taken by the consummate KGB professional, and should have seen it coming.  Putin is highly intelligent, I cannot say the same for the stupid dumb&$$.

The Russians are going around and dredging up practically everything that the USA administration used for the invasion of Iraq.

Now it comes out that the Georgians were warned by the State Department not to engage the operation they did, and they blew it off and fouled up big time.  They bit the bear, and the bear is striking back.  Georgia and Saakaashvili can kiss NATO and EU membership bye bye.  If they had not acted rashly and launched the stupid operation into S. Ossetiya, and lobbied instead for international awareness, perhaps they had a shot at NATO and the EU in the future.  All the dumb&$$ can do is sick Condi Rice and her vitriolic tongue on the Russians, and I am sure they are lying about in the Kremlin snickering.

This week was very telling in the candidates response to the invents there, one guy was on vacation in Hawaii and issued a flaccid statement through his press secretary, while the ex Navy guy was saying Reaganesque things like "We are all Georgians now" and talking tough. 

Adversity and the former KGB officer do not respect dumb&$$es with flaccid comments, they only respect and pay attention to sabre rattling. 

Russia will stall, crawl, dither etc.  They have all the cards and nothing to lose.  Who is going to do something?  The Europeans cannot, they have too much Russian natural gas flowing across in pipelines that they are addicted to, and the Americans cannot, because their President is hiding out with Karen Hughes in Crawford.

[longnine009]

You won't hear Rush Windbag pointing it out, but Pootie- Poot has effectively check mated bush. If bush was crazy enough to send forces into Georgia it would be the two best trained, best equipped armies in the world slicing and dicing each other. It would be a blood bath on both sides except the kremlin doesn't care about blood baths. "Da we'll send replacments..." Back here Americans would quickly lose their delusions about   "making the world safe for democracy", including Iraq. Not to mention China would probably use the opportunity to invade Taiwan.

If bush doesn't do anything the world watches, scratching their heads at the hypocrisy  of Iraq. Why isn't bush making Georgia safe for democracy--mission un-accomplished. And the more he runs his mouth, the more he highlights that. The best thing junior can do is just pass out somewhere in the rose garden.

No matter what  kind of a dirt bag Pootie Poot might be in every other respect he took Russia from skid row back on to the world stage in pretty short amount of time. What U.S politician is going to do that here when we hit the skids--which shouldn't be too much longer? Obama can't even pronounce National Debt. And McCain can't even count to seven.

It should all be very entertaining. Hey, that is about the only industry  we excel in. 

[scottishmoney]

I think it is sad that apparently no one in the USA or Europe saw it on the horizon.  While people in the West may not appreciate his qualities as a leader of Russia, he enjoyed enormous popularity at home.  Think about it, he inherited a country that was SPENT economically, politically etc. turned it around, now Russia has no debts, a military on the prowl, billions in the bank, and wealth that is gradually trickling down and creating something of a middle class.  Of course that is all at the expense of freedom of the press, and political and civil rights, but frankly the people are more concerned with their new BMW and their dacha and new cell phones etc and not such nonsense that they have never known or appreciated.

The loser in the whitehouse should have taken his horse blinders off and really seen the hammer and sickle in Pootie Poot's eyes.  He runs the show still, through his little puppet boy Medvedev, much like Stalin ran Mikhail Kalinin around on a string - Kalinin was President of the USSR for much of Stalin's premiership, but he was a puppet figure.

[longnine009]

Indeed, for now they are a very Capitalist country with oil reserves said to  be greater than Saudi Arabia's tapped out fields. And isn't money the common culture between Capitalists? We should be signing oil contracts with one of pooties sock puppets. But no, we're going to spend 100 trillion dollars and a 100,000 years trying to change a culture that is diametrically opposed to ours. And even if we succeed at that, what do gain, a bunch sand and tired oil wells?

This is what happens to a nation that is run by a bunch crack head democratlins and republicrats, elected by a bunch of Prozac zombies.