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Why is gold and silver dropping in price?

Bottom Feeder

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#2
I think we need to look at the phrase; "The Elites Warn..."
And look at the language that follows with a bit of skepticism and suspicion.
BF

ps: whose elites are these? not mine
 

Ebie

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#3
It is interesting:
When the market started dropping POG went up, in a large amount.
Now, as the market goes down further, a large drop, in POG.
Maybe margin calls.
 

Krag

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#4
Liquidity. That and the FED saying they were going to take charge and reverse the fall. The plunge protection team will be working around the clock this weekend IMO. Tax cuts and interest cuts on the horizon.
 

Cigarlover

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#5
Why is gold and silver dropping in price?
I'm gonna go out on a limb here and take a WAG. I think someone may have sold something.
 

Zed

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#6
Is it the virus? I went to check prices expecting it to be higher but it's lower.

This video prompted me to go look.

It is leverage getting unwound. Check the Loony Fringe for more info. Shouldn't last.
 

anywoundedduck

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#7
It is leverage getting unwound. Check the Loony Fringe for more info. Shouldn't last.
From your mouth, to God's ears.
 

hoarder

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#8
As EO 11110 stated in another thread,
"the banking vipers routinely do this -- they attack pm whenever stocks are crashing.

to prevent it being looked upon as a safe haven "
 

dacrunch

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#10
selling pm's for funds to cover losing margins in stocks? ....
 

Zed

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#13
How long did it last in 2008?
They dumped with everything else but came back much harder.

I'd say we have less leverage this time around, gold is less popular.
 

Zed

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#14
selling pm's for funds to cover losing margins in stocks? ....
Yes... it can be automatic, they will sell you up to cover what you are exposed for without even telling you. That is a margin account for you.
 

Voodoo

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#15
Yes... it can be automatic, they will sell you up to cover what you are exposed for without even telling you. That is a margin account for you.
Even if that is a short with long term gain. My highly shorted stock was up today even when the market was down 3%. They will sell any winners to cover margins.
 

Zed

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#16
Even if that is a short with long term gain. My highly shorted stock was up today even when the market was down 3%. They will sell any winners to cover margins.
Yes, anything to raise the owed cash. It is all the same to them.
 

chieftain

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#17
A heap of paper metals have been dumped on the markets, whether this is new paper remains to be seen.
 

Uglytruth

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#19
My bet is they are ahead of these wild swings both ways & making money hands over fist every day. They love the swings because they control the swings and profit from them.
 

the_shootist

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#20
They dumped with everything else but came back much harder.

I'd say we have less leverage this time around, gold is less popular.
How do you figure that?
 

Zed

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#21
How do you figure that?
2007 everything was price for perfection, HUI was double it's current level with gold 1K cheaper! Leverage was in everything to the max. Not so much today and this is a good thing.
 

Zed

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#22
A heap of paper metals have been dumped on the markets, whether this is new paper remains to be seen.
No... probably taken off the market as the longs folded and the shorts covered. They'd have been selling and closing out contracts. OI was huge and the commercials where well short. My bet is, and hope, OI contracted lots. That would be best for the POG. JMO.

Talking futures of course.
 

Vlad The Impaler

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#23
How low will it go? If low enough I will buy a lot. Can i hope for 7 dollar ounce silver?
Got this from email today,

Carl Worden (wolfeyes00@gmail.com)
To:you + 1 more Details

A lot of people have been wondering why gold and silver are dropping value at the same time as the Stock Market is plunging at record levels. It's very simple: Smart investors are pulling out of precious metals to have cash ready for when the market plunge stabilizes. The opportunity to buy high-value stocks at a substantial discount has never been better, and the same smart investors also know all the hype about the Corona Virus has caused panic selling that is not justified.

Many otherwise stable and reliable stocks have dropped over 30%, and smart investors know to buy as close to the bottom as possible because when the stocks do recover, they will recover rapidly and produce some very nice profits. So when the Market does begin to recover, it will result in a certain amount of instability as investors buy and then sell to secure profits, but the market will eventually stabilize and go right back up to 29,000 or so in about six months to a year.

So if you are a smart investor, right now would probably be a good time to invest in solid, low-risk stocks. The overall Market may drop a bit more, but it is very close to a recovery already.

Stock Market history tends to repeat itself.

Carl F. Worden
 

BigJim#1-8

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#25
More sellers than buyers
Maybe a case of selling what's sellable to cover calls versus trying to sell other assets for larger loss margins.
 

the_shootist

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#26

Ebie

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#27
Selling PMs to cover shorts, mainly
How low will it go? If low enough I will buy a lot. Can i hope for 7 dollar ounce silver?
Got this from email today,

Carl Worden (wolfeyes00@gmail.com)
To:you + 1 more Details

A lot of people have been wondering why gold and silver are dropping value at the same time as the Stock Market is plunging at record levels. It's very simple: Smart investors are pulling out of precious metals to have cash ready for when the market plunge stabilizes. The opportunity to buy high-value stocks at a substantial discount has never been better, and the same smart investors also know all the hype about the Corona Virus has caused panic selling that is not justified.

Many otherwise stable and reliable stocks have dropped over 30%, and smart investors know to buy as close to the bottom as possible because when the stocks do recover, they will recover rapidly and produce some very nice profits. So when the Market does begin to recover, it will result in a certain amount of instability as investors buy and then sell to secure profits, but the market will eventually stabilize and go right back up to 29,000 or so in about six months to a year.

So if you are a smart investor, right now would probably be a good time to invest in solid, low-risk stocks. The overall Market may drop a bit more, but it is very close to a recovery already.

Stock Market history tends to repeat itself.

Carl F. Worden
 
Last edited:

Buck

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#28
idk, as we've discussed here for a few years...all of this SM value is fake, all of this 'correction' still hasn't brought us into any type of Reality

Corporate Valuations based on Nothing, Over-leveraged Debt, lot's of corporations bought back large chunks of their own stock, some say to give to their CEO's as they're headed out the door, idk, anyways, this 'correction', imho, does not cover a cent of false corporate valuataions


 

Uglytruth

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#29
Because they can!
 

Cigarlover

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#30
When everything is in deflation mode, cash is king. Stocks and commodities all deflating. Earlier in the week on the big up day that then had a 3 billion sale into gold, I felt like that was a blow off top when I heard about he 3 billion sale.
 

Cigarlover

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#32
We may see even larger swings, up and down in the POG in the future.
And after that the POG will go up in a huge amount.
Absolutely. When gold is 80,000 1000-2000 point swings will be nothing.
 

EO 11110

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#35
comment about a gata article lifted from zh -- 47 billion dollar takedown

https://www.zerohedge.com/markets/are-we-cheap-yet

As James McShirley noted on LeMetropoleCafe.com today:

This past week, a whopping 135.475 TONNES of “paper gold” was flushed into the market to the tune of $47.15 BILLION!! It’s sole purpose was to SMASH the price of gold!

WHO besides governments in coordination with the BIS has that kind of money? Did any physical gold suddenly change hands? NO!
This was the work of the infamous Plunge Protection Team!

This reeks of PANIC because they know their entire house of cards is collapsing around them.