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Hecla Mining Co. Message Board

  • drawnfire911 drawnfire911 Sep 19, 2013 2:00 PM Flag

    What drives the PM metal's?

    Seem's like most have their own theory. To get even close to a rational explanation one has to step back & look at the macro economic/political picture during the PM lift off period's. Not always easy because condition's change so rapidly, especially today. Without dwelling on the trading psychology aspect it's not really a big a mystery as some may believe. Start with the obvious, a store of wealth & safe harbor in uncertain times-fact not opinion. Because of the volatility in psychology surrounding PM moves, market technicians/ chartists seem to have a problem connecting the dot's most of the time. Which bring's us back to the fundamental's. "Perceived" inflation expectation's. A lower fiat/currency index brought on by $ dilution, which was caused by poor policy decision's in the first place. Then perhaps throw in a strong likely hood of wage pressure[higher] down the road caused by "social inequality" policy's-like higher min. wage. Not saying good or bad but appear's a given to me. Perhaps even more important supply & demand, with the emphasis on supply. According to the USGS figures gold mine supply has dropped every month so far this year! Not a big surprise considering cost of production. When you boil the picture down, you end up with higher inflation expectation's, loss of purchasing power & a loss of confidence in the system [read govmnt.] to right the ship. Maybe i'm a bit jaded after watching this ship of fool's operate over the last 40-50 yrs. but NO ONE can deny we seem to just lurch from one crisis to another, while picking up the pace & never addressing the root cause! What's amazing to me is the complacency in those govmnt. confidence number's. I'm beginning to truly believe most can't focus for longer than a 72hr. new's cycle-including many politician's.

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