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TAXMASTER · 09-18-2008, 07:50 PM

it is truly amazing how momentum can change directions on a dime. the price of silver flirted with $13 an ounce for severall hours and gold was well over $900 and then at the end of the day plumeted. right now silver is under $12 and gold is under $850. trading volume is down at the end of the day and market manipulation is easier to accomplish. i look for both to go up over the night as asian and european markets open.

there have been rumors of a price disconect in these markets for some time. the large banks who store gold are not audited for their supplies and if they state that they got 10 million ounces in their vault, then their word is taken as gospel. they then can allow someone else to lease this gold and sell it on the futures market. everyone that understands supply and demand knows what happens when there is more supply than demand, the price goes down. now just think if you were one of the lucky guys that got to lease the gold from the bank and sell it on paper on the futures market. the bank actually pays you to do that. (they discount the gold lease) then as you drive the price down on the market since there is a tremendous increase in the supply, you then buy it back at the lower rate and replace the gold to the bank...except that the gold is never moved, it is only done on paper...unaudited with no doublechecking on if the gold actually exists.

many of the mints that produce silver bars and rounds have a 2-3 month backlog of orders. they take your money but cannot guarantee delivery by a certain date. there is now a greater shortage of actual supply of silver than there ever has been. this is why most dealers charge a several dollar surcharge over the spot price because that is what the real value is based upon supply and difficulty to get.

Namaste'

ps, a good day trader can make money on any kind of market...you just have to stay on your toes and not go to the bathroom.

09-18-2008, 07:50 PM	#35
TAXMASTER Avalon Senior Member Join Date: Sep 2008 Location: Terre Haute, Indiana Posts: 117	Re: Gold & Silver Q & A it is truly amazing how momentum can change directions on a dime. the price of silver flirted with $13 an ounce for severall hours and gold was well over $900 and then at the end of the day plumeted. right now silver is under $12 and gold is under $850. trading volume is down at the end of the day and market manipulation is easier to accomplish. i look for both to go up over the night as asian and european markets open. there have been rumors of a price disconect in these markets for some time. the large banks who store gold are not audited for their supplies and if they state that they got 10 million ounces in their vault, then their word is taken as gospel. they then can allow someone else to lease this gold and sell it on the futures market. everyone that understands supply and demand knows what happens when there is more supply than demand, the price goes down. now just think if you were one of the lucky guys that got to lease the gold from the bank and sell it on paper on the futures market. the bank actually pays you to do that. (they discount the gold lease) then as you drive the price down on the market since there is a tremendous increase in the supply, you then buy it back at the lower rate and replace the gold to the bank...except that the gold is never moved, it is only done on paper...unaudited with no doublechecking on if the gold actually exists. many of the mints that produce silver bars and rounds have a 2-3 month backlog of orders. they take your money but cannot guarantee delivery by a certain date. there is now a greater shortage of actual supply of silver than there ever has been. this is why most dealers charge a several dollar surcharge over the spot price because that is what the real value is based upon supply and difficulty to get. Namaste' ps, a good day trader can make money on any kind of market...you just have to stay on your toes and not go to the bathroom.