PM Rally

[schockergd]

Arg, out of all the times to crash, why was it 3 days after I bought a ton

Next time I buy, i'm buying puts the same day.

[shinnosuke]

barry's day of reckoning might be tomorrow

I'm praying for him... for my own sake...

Scyther, if you don't sell your silver, your losses are exactly $0. Don't panic.

[deacon]

Does anyone have a chart showing the next resistance point?

[scyther]

barry's day of reckoning might be tomorrow

I'm praying for him... for my own sake...

Scyther, if you don't sell your silver, your losses are exactly $0. Don't panic.

I'm not planning to sell, and I'm not panicking. I'm only in like a thousand dollars. I'm sure that sounds like nothing to most people here, but it's a lot to me... I just don't want to hold this for 20 years before it reaches the value I bought it at. But oh well, I haven't risked my livelihood on it or anything.

[shinnosuke]

You'll be OK. That timeline is way longer than a big run up will require.

[shinnosuke]

Anybody know Larry Edelson? My dad gets his emails regularly. Larry has been saying for a few years that a big dip in PM prices is coming. "It's not the time yet to back up the truck." is the common theme. Other writers on his website express differing opinions.

http://www.uncommonwisdomdaily.com/expe ... ry-edelson

Does he have any street cred with any of you?

The latest from Edelson:
I'll get right to the point ...

First, gold's historic collapse — losing as much as $233 in just the last four trading days, a whopping 14.7 percent ... and $565, or 29.44 percent since its high in 2011 — is NOT over.

Second, expect a bounce to soon occur, but don't buy into it. If you do, you will likely lose a bundle of money as gold heads even lower.

The same advice applies to silver, to copper, to platinum, to palladium, to crude oil and more. Their interim-bear markets are not over, not by a long shot. Ditto for natural resource stocks.

For now, I'll confine this update largely to gold. I want you to have the important system support levels for gold from my trading models. That way, you will have a road map.

I'll cover these technical levels first, then I'll briefly review the fundamental forces driving gold lower.

Gold's major support levels now lay at ...

— $1,380. Gold is currently below that level.
— 1298.70
— 1244.90
— 1160.90
— 1028.40
— 993.90

Each of the above levels should temporarily hold once they are hit. But the operative word is "temporarily." Based on my system models, gold will likely not bottom until it hits major long-term support at $1,028.

As for overhead resistance, there is plenty. For any bounce that soon comes into play, expect resistance to form at the $1,380 ... $1,412 ... and $1,458 levels.

As for the fundamentals driving gold (and other commodities) lower, they are the same forces I've been telling you about for many months now ...

First, central bank money-printing has lost its impact on the markets. Why? Very simply put, there's too much bad debt floating around the globe and there's simply no way central bank money-printing can offset it.

Second, austerity measures in Europe and the United States are also overpowering the inflationary impact of money-printing.

Third, and most importantly in my view, the Cyprus confiscation of uninsured depositor money has completely turned the world upside down. Money is no longer safe in a bank in Europe.


That, in turn, is causing hundreds of billions of dollars to essentially go into hiding. But not in gold, which is subject to confiscation, real or imagined.

Instead, capital is largely going into cash, which is also bullish for the U.S. dollar, since it's still the world's reserve currency.

Fourth, Japan's new aggressive policy to devalue its currency is also not bullish for gold. Japanese investors are plowing their money instead into their own stock market, and my sources tell me loads of Japanese capital is also fleeing to our stock market.

In fact, much of the selling in gold originated in Japan. It was just a week ago that gold hit a record new high in yen terms, due to the depreciating Japanese currency.

But instead of lining up to buy gold, Japanese investors queued up at gold dealers around the country dumping every ounce of gold they could get their hands on, even melting down jewelry.

Why? Japanese investors don't trust their own government, and if push comes to shove with North Korea, Japanese investors want their money liquid and mobile. That means cash, not gold.

In essence, we are seeing what I call "Money on the Run" and its momentum is picking up, in Europe and in Japan. Panicked capital is going into hiding, but in cash and equities in the U.S. and Japan, not in gold.

Later, when everyone realizes that Washington has many of the same problems that Europe and Japan has, all of the above fundamental forces will flip back to the bullish side for gold.

But that time is not here yet.

[aloneibreak]

Third, and most importantly in my view, the Cyprus confiscation of uninsured depositor money has completely turned the world upside down. Money is no longer safe in a bank in Europe.

cyprus has definately changed the whole system

and most folks are ignorant to that fact

thanks for posting

[scyther]

Indeed, thanks for posting... it's going to be hard to resist the impulse to buy at these prices, but I'll try. Maybe it will be a good time to buy in fall again?

I so truly wish I had discovered silver stacking just 13 months later than I did... or 2 years earlier