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View Full Version : can the fed intervene very very aggressively in gold/silver?



joshrain
24th June 2008, 21:47
hi folks,

i was wondering can the fed intervene very aggressively and take down the price of silver to lows?

what protection do we have?
what can one do?
how will the global market react.

i don't buy mining stocks, but i have heard recently lots of mining companies got hit due to high naked short selling.

balou2
25th June 2008, 02:14
hi folks,

i was wondering can the fed intervene very aggressively and take down the price of silver to lows?

what protection do we have?
what can one do?
how will the global market react.

i don't buy mining stocks, but i have heard recently lots of mining companies got hit due to high naked short selling.

There will be others with differing opinions, but for me, it's like this:

- First, are you talking about stocks, or holding PM, because the scenario is different. The Fed, in general would not intervene to lower the prices of silver. There are situations that could occur (propagated by the Fed) that might have residual lowering of spot prices, especially with regards to fiat, but as far as just waving a magic wand and saying "lower prices" it won't happen like that.

- Protection? The ONLY true protection you have is by holding your own PM, and holding it quietly.

- What can one do? Research, research, research. Know what you're getting into and why. Why are you buying silver stocks/PM? What is your purpose? If you're buying stocks, what is the company's debt structure? Don't just look at their PE Ratio, look at debt, and long term goals. Any public company has all this available. If you have questions that are left unanswered to your suitability, then pass. Regardless...what can be done, is controlling your destiny. Read, study, follow what you do, have a plan. Don't fly blind.

- Asking how the global market will react is like asking what size shoe a newborn baby will wear when he is 50. You can guess, but there is no way to know. The nature of current economic conditions is becoming a hybrid of all the singular economies that have existed for decades. To put it as some of the pundits quote, we are becoming a single global economy. It's a round-robin effect. If country 'x' does something, county 'y' has a residual impact, which means country 'z' has a residual impact, until ultimately it gets back to country 'x'. There is little WE can do to control the global economy. What we can do is protect ourselves and hold PM in our possession.

Again, just one man's opinion.