Gold is Up, Silver is Down

[MoShaniqua]

Anyone make any sense of this?

[gunDriller]

Anyone make any sense of this?


"Europe debt crisis spreads to Portugal"
http://us.rd.yahoo.com/finance/news/topnews;_ylt=AkqQ5w9m7VPaGDenOBTCp8e7YWsA;_ylu=X3o DMTE1NXF2Y2lrBHBvcwMyBHNlYwN0b3BTdG9yaWVzBHNsawNld XJvcGVkZWJ0Y3I-/*http://biz.yahoo.com/ap/100427/eu_greece_financial_crisis.html?sec=topStories&pos=main&asset=&ccode=

Concerns over sovereign debt defaults hammered stock markets across the world.

The flight to safety was not all to dollars. Some of the flight to safety was to gold.

Very unusual, seeing the gold price go up on a day when the stock markets are down in some countries and panicking in others.

Euro & Asia markets
http://www.bloomberg.com/markets/stocks/wei.html
http://www.bloomberg.com/markets/stocks/wei_region3.html

I always wondered why people flee to dollars when the stock market falls. So I thought eventually there would be a point of inflection, when gold would rise when the stock market falls.

I wonder if this is related to the up-valuation of the Chinese Yuan. It was predicted for the May-June timeframe and that's less than a week away. China has kept it artificially low to help their exports and has announced that they're "breaking the peg" and up-valuing it 40%. (If the US did that, everybody would laugh.)

So all of a sudden $1500 gold is the same as $1100 gold, to an organization who is paying for their gold in Yuan.

[aybesee123]

Venezuela considers nationalization of gold mines

[gunDriller]

http://static.businessinsider.com/image/4bd6ee907f8b9a452c550100-555-344/chart.png

Greek stock market is down 6.5% today. They're having the same kind of "Oh Sh*t" moment that the US had on September 18, 2005, when the Dow fell about 8%.

http://www.businessinsider.com/holy-cow-greece-is-crashing-today-2010-4

It's sovereign debt default time !

Speaking of Venezuela, because Mexico's oil exports are falling, and they have a lot of silver mines and mills, their silver industry is becoming one of their bigger industries. My guess is, the Mexican government uses the silver industry as a cash cow, though they may not have formally nationalized it.

http://www.commodityonline.com/news/Venezuela-threatens-to-nationalize-gold-mining-27661-3-1.html

http://www.nj.com/newsflash/index.ssf?/base/business-67/127225261466610.xml&storylist=new_topstories

I found these 2 articles about Venezuela nationalizing the gold industry. I wonder how that will affect the price of gold or how it connects to what's going on today.

[uranian]

The flight to safety was not all to dollars. Some of the flight to safety was to gold.

Very unusual, seeing the gold price go up on a day when the stock markets are down in some countries and panicking in others.

agreed, they've been trading in lockstep for months now. gold is now at record highs in £ and €. could be the start of a significant change. if the sovereign debt default story continues (and note that italy almost had a failed bond auction today, it was 1.02 subscribed), phase 2 of the financial crisis is just beginning to unfold. so probably the dow will be up 200 points by friday eh ;)

[Saul Mine]

WTF are you talking about? You mean down a dime today? Or down 15 cents this week? If you are worried about daily fluctuations, or even weekly fluctuations, you are in the wrong business. Silver is famous for sucking money out of people with such a short time frame. You need to go back to square one, figure out why you want to invest, then choose a vehicle appropriate to that reason. If your reason is something like "I wanna win a bunch of greenies," then precious metals are not for you.

Right now precious metals are the only investment that makes sense. But you have to learn the attitude. The attitude is that silver and gold are money and green paper is not. You don't buy metals hoping to sell them in a day or two, you buy them to lock in your wealth: you have the ounces, somebody else has the USD, and that's just the way you wanted it.

[Steal]

Venezuela considers nationalization of gold mines


Thought he already did this, at gun point, in an effort to trade gold for arms with Russia, a year or two ago.