A few thoughts on the state of things

[Scythe13]

(9 April 2013, 13:47)Sardo_Numpsa Wrote:

(9 April 2013, 13:40)Scythe13 Wrote: How come?

Price is too volatile, too many factors at play. If you don't have much cash to spare it could get very difficult physiologically to sit on your hands through the swings and possible crash in price. I don't think it's a given it will keep going up indefinitely

That being said if the price crashes I will buying

The mine in Mongolia is a major factor, but it's not hugely Gold/Silver focused.

I'd say, come 2016, silver will have topped out, the basic market's functions will be flailing, and as a result, people will start to head into PM's. That'll be when I cash out and sell.

There is still a load of instability available for the markets, at the moment. People are feeling relatively bullish, and optimistic, which suggests that the 6 month tail from market to economy is either misguided, or we're heading into a jobless recovery. I'm going with the former. But that mini optimism does make me think that the market still have a way to go until it hits rock bottom, and that SHOULD be when PM's reach their max, a few months later.

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(9 April 2013, 13:51)Sardo_Numpsa Wrote: Actually the price of gold is negatively correlated with the health of the global economy.

Watch what the S&P is doing on any given day then look at the price of gold, they don't often move in the same direction.

They work, in most basic terms, as opposites.

Stock market is for when people are feeling good, so that's when that increases. Then the PM's are for when people feel bad, and that's when that increases. Money moves from one side of the exchange to the other.

That's the SIMPLEST (vastly oversimplified) version.