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main1event
16th February 2010, 13:29
I've never seen so many jittery investors on this last pullback in PMs. Sure Silver got hammered once again but Gold only pulled back roughly 10%, which is typically considered normal in a bull market.

Fear in a bull market means that its a healthy bull market. When everyone is bullish, and PM stocks are going gangbusters typically signals a top.

I do know that gold and silver had a huge run and they were due for a rest. Now they are both oversold, so its possible we could make a run for new highs before May.

I believe we could see the dollar collapse from this level. Too many people jumped in on this Euro catastrophe scenario where the dollar rallies hard. I believe we may have seen the top for this move in the dollar. We could get some whipsawing around for a few days but if the Dollar breaks 78, we could see the low 70's faster than many people expect.

The fundamentals for the US are no better than they are in Europe. About 48 states are just as much underwater as Greece. The dollar is no pillar of safety, in fact its just as much a liability of our own economy. A strong dollar is devastating to our exports and the amount of debt we have. The dollar fundamentals do not support the technicals especially when there is nothing to back it up.

Aggie
16th February 2010, 14:02
And I don't think this two mega-tusker elephant standing in the middle of our living room is helping the dollar either.................

ag

http://dailybail.com/headlines/state-pension-funds-fall-off-1-trillion-cliff.html

akak
18th February 2010, 03:36
I agree completely main! I frankly cannot understand anyone who would dart into and out of the precious metals based on daily or weekly price swings. I mean, come on, are you children or something, with a 2 minute attention span?

Until our government, and other governments around the world, rein in their wild borrowing and unsustainable spending, and adopt some modicum of fiscal sanity, then it is a given that the values (along with the prices) of the precious metals are only going to increase. Anyone who would bail out of their gold and silver holdings are implicitly stating that they believe that world governments have suddenly reformed their ways, and all fiat currency devaluation has not only been stopped, but been put on hold indefinitely. Until you can see all that happening, it is simply nuts to sell out of almost the only things that can financially carry one through the irresponsible and reckless economic journey our insane societies have decided to pursue.

Until I see some measure of fiscal sanity in the world, which would have to include the abandonment of unbacked fiat currencies, I will sit on my gold and silver come hell or high water. All these price movements are merely background noise, and fundamentally irrelevant except as the dips provide new entry points for further purchases.

What is Truth?
18th February 2010, 06:15
I've never seen so many jittery investors on this last pullback in PMs. Sure Silver got hammered once again but Gold only pulled back roughly 10%, which is typically considered normal in a bull market.

Fear in a bull market means that its a healthy bull market. When everyone is bullish, and PM stocks are going gangbusters typically signals a top.

I do know that gold and silver had a huge run and they were due for a rest. Now they are both oversold, so its possible we could make a run for new highs before May.

I believe we could see the dollar collapse from this level. Too many people jumped in on this Euro catastrophe scenario where the dollar rallies hard. I believe we may have seen the top for this move in the dollar. We could get some whipsawing around for a few days but if the Dollar breaks 78, we could see the low 70's faster than many people expect.

The fundamentals for the US are no better than they are in Europe. About 48 states are just as much underwater as Greece. The dollar is no pillar of safety, in fact its just as much a liability of our own economy. A strong dollar is devastating to our exports and the amount of debt we have. The dollar fundamentals do not support the technicals especially when there is nothing to back it up.

Excellent post main. But let's not forget that nervous investors provide the small bar physical for the rest of us to buy at discount prices.