Silver FAILED badly as a "flight to safety" asset during ALL recent financial storm....during ALL recent currency crises...and during ALL recent wars.
ANOTHER OBVIOUS DEADCAT BOUNCE today in a stock on the verge of a PANIC SELL, leading to a CRASH, as more BAGHOLDERS awake to the REALITY of how USELESS these silvers happen to be!!
really? fed is creating another dollar bubble and the value is in dollars? it can only last so long and will fail like everyhting else the government does for their "friends". you, on the other hand, get to pay the bill when it comes due, so by all means vote your dollars while they still have some value.
There is a great deal of misunderstanding about exactly how this process works, and therefore about what the result will be. The common misconception is that if the Fed pumps liquidity into the system, the result will be inflation, and that is why there has been widespread expectation of increasing inflation, even hyperinflation. That expectation has been wrong, however, and those who bought into it have not been right in their forecasts for the metals. Why not? What went wrong?
The first problem is that, while the Fed can put liquidity into the banking system,they can't make the banks lend it. With the weak economy, much of the liquidity is just sitting there. The second problem is that the GDP equals the money supply times the velocity. If the velocity remained constant, extra money supply would mean inflation. Instead, as the economy slowed, the velocity has dropped dramatically, preventing the expected inflation.
For those that have read this board a long time, you know I have long wavered on the "inflation/deflation" arguments, and never really forecast one or the other. I continue in the same vein. I do think that in a few years the economy will start to grow, and that, when that happens, banks will have qualified potential borrowers again, and they will start lending again. At that time, we may see inflation heating up, but no doubt we will also see the Fed trying to soak up the liquidity by raising rates. What will happen? My crystal ball remains murky as forces again collide. Inflation will be good for metals, but improving economy will be bad for it, as will rising interest rates.
ask yourself this ? would you rather own a stock like PEPSI selling at 17 times 2014 projected earnings but only grower at a 10% rate with a 2.7% divendend or PAAS selling at less than 10 times projected 2014 earnings a but earnings growing at a rate of 12-15% and has a divendend of 3.5 % . jusy one year ago UNG the natural gas etf was selling at 15 and everyone said it was going to 10 , GEE look at it today
Hey, the insect is back! (insect_insight a.k.a. avian_truth)
You made money selling Jan '12 calls, and *would* have made money selling the Jan '13 calls if you'd stayed in, but pretty sure you're going to get your head handed to you this time, bro. PAAS is behaving very nicely lately. So is AUY, which I see you're also attempting to talk down.
I dare you to stay in this trade, but you must have already cut your losses on this since I'm not seeing 3 x stupid posts/day from you. Dang ... really wish you would have stayed short on PAAS. You deserve it.
AJ, I have been putting as many as 25 spam posters ON IGNORE each day. This new format must make it easier for them to make money posting drivel.
Silver is in the “correction zone”. This price area served as a platform for a sizable rally, last fall. Fundamentally, silver is a solid asset to own, poised to benefit from the ongoing industrialization in Asia.
Technically, there is a small inverse head & shoulders pattern in place on this daily chart. Silver also has a classic three-wave correction in play, and big rallies can occur from this type of set-up.
We all need a solid rally, even more than we want one, so patience is our greatest ally now. Silver must take out the downtrend line in the $31 area, to start a trending move significantly higher and it's coming!