Are Gold and Silver gonna keep going down?

[sixoclockhold]

With the price of silver being as low as it is compared to previous years, and gold actually reaching around 1200 an ounce, how can you go wrong by investing in PM? I mean looking at previous years those prices are pretty low, but its skeptical weather or not it will continue to fall or begin to rise.

To add to that, wouldn't it make sense to invest in PM if you are concerned for the collapse of the US dollar? Once paper is no longer valuable, gold is the standard isn't it? Especially with China moving over to the gold standard, that makes it more desirable? Im just trying to learn this stuff and have just started trying to understand these matters so if these are dumb questions, please just inform me, I don't need to know how uneducated I am in the matter, I already admit that.

I don't think "investing" is the right term. It's more insurance like guns/ammo/water/food/shelter. Gold/Silver were the last on my list, all others have been taken care of for my immediate family, even a bug out location I purchased 30 years ago specifically for potential economic downturn. That was my first purchase. Land paid for, with fresh water, 2 hours from the nearest interstate, hardwoods, game & fish, moderate temps and local power generation via a dam. So yes, us old folks were even thinking this way long before Obama. The depression was still fresh in my grandmothers mind.

Once I got my bases covered I went the standard 3 to 1 value of Gold/Silver with like in kind equivalent in cash. You never want to have to touch the PM's so discretionary income has always been used. No get rich plans here, only survival of the fittest.

There really isn't enough of the physical metals to back any currency completely or trade them outright. 3/4- 1 of oz. of Gold per person and about 8-10 of silver if all minted into coins. Currencies get in trouble because they are not backed fully with natural resources ie PM's, oil, gas, crops etc. The expansion of fake money has gone too far due to greed and some day it will reset. Will PM's play a part in that? I'm betting they will, I may not be the recipient of it but my children or grand kids surely will.

[sixoclockhold]

Some pretty crazy manipulation today, Gold/Silver get hammered before market open in heavy slam volume only to rebound for gains in the day. Not for the weak in the knee crowd for sure.

Gold loses $20 bucks in slam, then gains $34 in an in your face dollar. Silver dips .80 cents then gains a buck. Crazy, love it. Should tell all something with this kind of action.

[smashycrashy]

"Manipulation"? Looks like exactly what it is thin holiday trading.. Wouldn't take any meaning of the stock or pm market during the holidays. The big boys are on vacation. Gold ended Xmas eve at 1205 looks like it will end New years eve the same spot... On thin trading.. *yawn*

[Ripon83]

March 30 Prediction
$1005 Gold
$16.2 silver

[sixoclockhold]

Looks like tax loss selling is over and before our open we get silver up .90 cents and Gold up $20.

We go to the moon now, 10 yr treasury 3.03%

This party is just getting started now.

[sixoclockhold]

Gold and Silver will keep going down as the economy improves...the PM flight to safety play is over...until the next financial crisis.

But in the meantime I see gold dipping to around $1,000 in the first quarter 2014 and Silver as low as $15.

I don't see PM's as a good investment in the upcoming year or years...If the Fed continues to reduce bond purchases add interest rates rise, gold could drop to $800 and Silver back under $10.

I do NOT see Gold under any circumstance going over $1,300-$1,400 or Silver over $22.

I like risk, so I shorted the QQQ's yesterday, been long miners, hold some physical. I think we "may" be entering the perfect storm now for investments.

Nice to see PM's doing well the first two days of the New Year.

BTW I think I could think of tons of reasons we may see $1,500 Gold by say May 2014 or SOONER.

[johnniezombie]

Don't you think the Obama Admin is artificially supporting the market? That's ending soon.

[sixoclockhold]

Don't you think the Obama Admin is artificially supporting the market? That's ending soon.

I think ALL administrations have supported the markets. That's the nature of a fiat currency. Debt is created to supply an ever increasing amount of fiat in the system as "interest" can never be paid without the creation of new debt. All administrations have tried to hold the old 2.5%-3.5% inflation which is really added debt, to where we are now, worthless fiat with the expansion of debt needed now in the trillions. This is why ZIRP zero interest rate policy is a MUST.

It's over and everyone knows it. Well, most everyone who haven't been drinking the koolaid the media spews.

[sixoclockhold]

I'm also going out on a VERY shaky limb and calling a rise in Gold to $1,300 by end of next week.

That's how the system works, sneeze and you're late to the party.

[Uxi]

March 30 Prediction
$1005 Gold
$16.2 silver

BTW I think I could think of tons of reasons we may see $1,500 Gold by say May 2014 or SOONER.

:Sets calendar:

[DTOM CA!]

"The cost to mine and produce an ounce of gold, on average, ranges from $1,100 to $1,250.. Some mines produce gold at a very affordable cost while others are now producing gold at costs that are higher than the metal is valued."

http://www.forbes.com/sites/kitconews/2013/06/14/feature-is-it-sustainable-to-mine-gold-in-this-current-price-environment/

If this is true then we are getting gold at the cost to produce right now which does not sound like a bad deal to me. Eventually interest rates will have to rise to normal rates then our debt will be unsustainable. Who knows what the Gov. will do when they can't pay there bills. Probably something similar to Zimbabwe.

[smashycrashy]

All in costs are very nebelous and very high for public miners. For example, new exploration costs can easily be cut and mining existing ore becomes that much cheaper. Barrack mining has $44 billion in debt, if they declare bankruptcy tmw the bondholders take a haircut and get paid back at the newly discounted cost of production (very simplified way of looking at it). Gold was being mined just fine at $250 an ounce and people here need to think how that was possible...

[therealnickb]

I'm also going out on a VERY shaky limb and calling a rise in Gold to $1,300 by end of next week.

That's how the system works, sneeze and you're late to the party.

I don't think missing a 10% move is the end of the world.

You can't time investments consistently and shouldn't have all your eggs in one basket. But you know that.

[smashycrashy]

"The cost to mine and produce an ounce of gold, on average, ranges from $1,100 to $1,250.. Some mines produce gold at a very affordable cost while others are now producing gold at costs that are higher than the metal is valued."

http://www.forbes.com/sites/kitconews/2013/06/14/feature-is-it-sustainable-to-mine-gold-in-this-current-price-environment/

If this is true then we are getting gold at the cost to produce right now which does not sound like a bad deal to me. Eventually interest rates will have to rise to normal rates then our debt will be unsustainable. Who knows what the Gov. will do when they can't pay there bills. Probably something similar to Zimbabwe.

FYI cash cost != all-in costs.

Buying under avg cash cost = ok

Buying under The newly minted metric of "all-in" costs to justify a bunch of overleveraged public miners.... undetermined (optimistically, at best)

[sixoclockhold]

The worlds largest gold mining country, China, produces 400 tonnes a year with slave labor and communist rule, yet they choose to purchase 600 tonnes more of over priced bullion on the world market at a huge premium. Gee I wonder why they are so foolish?

Smashy, you could sell them some at $250 an ounce?