Deflation - Gold and Silver Price Pullback

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Uploaded by on Sep 23, 2011

UPDATE: 9/23/11, 7:25 EST - A couple of posts this afternoon on ZeroHedge helps to (partially) explain the pullback in gold (and silver) prices. Seems the CME has jacked the margin requirements by 21% for gold and 16% for silver. Rumor has it that news of the impending margin hikes leaked. Links below!


Case Closed: CME Hikes Gold, Silver, Copper Margins
http://www.zerohedge.com/news/case-closed-cme-hikes-gold-silver-copper-margins

also:

Gold Liquidations Open Thread
http://www.zerohedge.com/news/gold-liquidations-open-thread

The recent pullback in the price of gold and silver is indicative of deflationary pressures on all asset classes. It's not unexpected, and further pullback in prices should be expected, as the worldwide debt crises plays-out. If you have a long-term perspective, you won't let these price pull-backs shake you out of your positions in precious metals. I believe that once the debt crisis moves into full bloom, the money masters and politicians will attempt to truly flood the world with paper in a vein attempt to prevent the debt collapse. It will be during this phase of the big game that your gold and silver will dramatically increase in value relative to fiat currencies.

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Uploader Comments (watcherjohnny)

  • I went to the bank today and gave them $100 bill and said I would like to buy some USD$. I heard the dollar is getting stronger and I would like to invest in that.

    The lady just looked at me and then called the manager over.........

  • @kcrone1

    I'm guessing you made it on to some sort of "watch list"!!

  • I believe the scarcity for dollars will be short lived. The fall in PM prices is a mirror of the sudden, but temporary rise in USD. In many other currencies gold is barely down. This crisis will be met like all those previous, fresh liquidy in increasing doses. Remember, it's an election year and Obama has a printing press and is about to make tons of promises. The death of the fiat money sytem will be long and drawn out. Many more wild 'twists' and turns before this ride is over.

  • @bunkermunk

    Could you elaborate on why you think the $ scarcity will be short lived? I agree with your overall premise, but we've dug a very deep debt hole (public and private), and it will take lots of dollars even to partially fill it back in. Heck, we're still digging the public hole in the US to the tune of $1.3T+ per year!! Also, how do you envision the new $ will find their way to the "consumer"?

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  • well its mid feb 2012... low 30s for spot silver...pray for a huge pull back, this will give people a last chance to save something because we all know whats coming in the next months or probably years...pray ffor the ten dollar pull back on silver, just buy it until u cant afford it anymore... its gods money people, buy it , it will save ur ass

  • You have no idea. If you went to college it was a big waste of money.

  • @mrzack888 that is in a normal market. In the face of insolvency, a govt. bond collapse will be the end of the fiat US Dollar system. Just think if someone owed you in Saddam Dinars. Your accounts receivable would be worthless even though the currency is not even being printed.

    The fact is that we are seeing a disinflationary situation. You are valuing these asset classes in a paper money that is becoming worthless. Just get out of the dollar before it is too late.

  • @damienrockaterror municple bonds and treasuries have no effect on us dollar. if those bonds collapse US dollar and treasury will go up in demand, not down.

  • @nowfabien Agree with you 100%. The Fed is a criminal institution and unconstitutional at best. It is in fact a PRIVATE BANKING CARTEL CONTROLLING THE ENTIRE ECONOMY OF THE USA. Thomas Jefferson warned us about that very thing and it's been in place for almost 100 years! It is allowed to prosper only because of traitors in government.

  • @watcherjohnny The debt hole will never be patched up. The biggest bust will be in municipal bonds and treasuries. Once these bond markets collapse it is over for the dollar because even though the debt exists it will not be paid without hyper inflating the money supply. The idea of deflation with fiat money is not theoretically possible because the real interest rate will always be negative. If the privately owned federal reserve attempts to raise interest rates it will exacerbate the collapse

  • @watcherjohnny you cant dig the hole because you're not in urge to pay the debt. The Fed lets you grow the debt. They will take the land when USA is bankrupted.

  • I dont get it, with all the trouble Europe is in how come we havent seen Gold and Silver prices going through the roof? Is all the hype true, so far doesnt look like it to me! If anything the opposite is true, prices dropping!

  • The scam is aided by the traitors in government who use their oaths as toilet paper while they trade freedom for personal gain. Shame on them and eternal shame.

  • Who is everyone indebted to? The IMF! World Bank! Federal Reserve! Those who print money out of thin air and rule the world with their scam! So the whole world is broke and the world bank is rich and has plenty of slaves to keep them comfortable. Make no mistake. They have engineered this "crisis."

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