Old Project Avalon Forum (ARCHIVE) - View Single Post

TAXMASTER · 10-18-2008, 01:35 AM

there are 2 problems facing gold right now. first is the rise of the dollar. why is the dollar rising even though it isn'y worth the ink that it is printed with? most people today have their investments and retirement accoubts in fund families with brokers. during the past year they have been losing money and are looking at their options. evey fund is losing double digits now and the only fund that they have to move their money into as a safe haven is the treasury bill or money market fund. it pays about 1 1/2 to 2 percent but its better than losing 20 percent. alot of people cannot take their money out of these funds because they are in their 401k and they are still employed or they will get a penalty. people who have taken their money out are being told to invest in short term treasury bills by most investment brokers because it is backed directly by the us government. this is the main reason the dollar is going up.

now gold normally sells in a cycle. it tends to bottom out in august, take a jump in september, dive in october and rise again in november. this cycle has repeated almost every year in the last 40 years. so earlier this year when the market tanked and people were looking at where to move their funds, they saw precious metals and commodities were the only thing that had good returns so they jumped in and helped ride the market up. when the normal cycle started to wain in late july and metals and commodities started to fall then more people started to bail out and into the dollar.

so what i am saying is that this is not too different from any other year. the only difference is that the economy has tanked and commodities are in the pisser. alot of funds tend to buy a certain amount of each commodity ie gold, silver oil, wheat etc, and since people are not buying commodities right now, that tends to extort the prices of both gold and silver. silver and gold are considered to be partly commodities and partly a hedge on inflation with silver leaning more towards a commodity especially when commodities are falling. i hope this helps to clear up why they are so low.

even i got caught with my pants down, as i was long in gold and was not expecting it to drop $100 in less than 12 hours. i had to come up with margin calls twice and i am praying for a rebound soon.

Namaste'

10-18-2008, 01:35 AM	#92
TAXMASTER Avalon Senior Member Join Date: Sep 2008 Location: Terre Haute, Indiana Posts: 117	Re: Buy Silver & Gold Right NOW! there are 2 problems facing gold right now. first is the rise of the dollar. why is the dollar rising even though it isn'y worth the ink that it is printed with? most people today have their investments and retirement accoubts in fund families with brokers. during the past year they have been losing money and are looking at their options. evey fund is losing double digits now and the only fund that they have to move their money into as a safe haven is the treasury bill or money market fund. it pays about 1 1/2 to 2 percent but its better than losing 20 percent. alot of people cannot take their money out of these funds because they are in their 401k and they are still employed or they will get a penalty. people who have taken their money out are being told to invest in short term treasury bills by most investment brokers because it is backed directly by the us government. this is the main reason the dollar is going up. now gold normally sells in a cycle. it tends to bottom out in august, take a jump in september, dive in october and rise again in november. this cycle has repeated almost every year in the last 40 years. so earlier this year when the market tanked and people were looking at where to move their funds, they saw precious metals and commodities were the only thing that had good returns so they jumped in and helped ride the market up. when the normal cycle started to wain in late july and metals and commodities started to fall then more people started to bail out and into the dollar. so what i am saying is that this is not too different from any other year. the only difference is that the economy has tanked and commodities are in the pisser. alot of funds tend to buy a certain amount of each commodity ie gold, silver oil, wheat etc, and since people are not buying commodities right now, that tends to extort the prices of both gold and silver. silver and gold are considered to be partly commodities and partly a hedge on inflation with silver leaning more towards a commodity especially when commodities are falling. i hope this helps to clear up why they are so low. even i got caught with my pants down, as i was long in gold and was not expecting it to drop $100 in less than 12 hours. i had to come up with margin calls twice and i am praying for a rebound soon. Namaste'