Talk of lower PM prices postpones default

[aeondaze]

I was thinking this morning of how many times since this years monumental smackdown we've heard pundits proclaiming the bottom isn't in or that there is one last drop before the rise through the stratosphere.

All this talk is utter bullshit in my opinion. this is exactly what the money printers want. If everyone thinks at some point there will be lower prices then they'll wait to make any purchases, the larger the purchase the more reason to wait for a drop in price.

Well it's been eight months since the low and although the price has looked like dropping below the low it hasn't eventuated despite all the talk, which only serves the momey printers interests.

I am going out on a limb and saying this is all hocus locus. The low is in, it's time to make your last purchases before the price punches through $30, which will happen within the next six months.

o)(~

[StreetsOfGold]

II am going out on a limb and saying...

Why does this remind me of 1970 silver art bar and a TP bet?

[Sparky]

Exactly. This is how big money manipulation works.

To understand the game, you have to understand the dynamics. First, understand that the pundits aren't on the side of the manipulators. They are being manipulated as well. They don't have a clue what's going to happen.

Second, the bottom may be in. But it might not be in. Price may well go lower.

Here's what I've figure out over the years:

Those doing the manipulation are not all on the same page. They are competitors with one another, and it's a big game of chicken for them. They know the retail investors/speculators are being used as pawns and they are happy to take their money, but even they don't know when the bottom will be in because they are also trying to manipulate each other.

They know this is a game of manipulated peaks and valleys. It's easy for them once a new trend is firmly established. They just pile on in that direction. But when a trend has become mature, it gets a little tricky. They know there's going to be a turn, and they want to be on the right side of it.

The anxious ones will try to turn the earliest to maximize profit. The patient ones will try to manipulate their anxiousness. For instance, during a mature downtrend, the patient ones will temporarily become big buyers. They try to get the anxious ones to buy into it, thinking that the turn has happened. At this point, the patient ones take their money by becoming sellers again after an impressive short rally. They are also happy to take the money of retail players who are also anxious to catch the turn.

It takes capital and leverage to keep manipulating the market in one direction. Some manipulators run out of capital before others, because they have been on the wrong side of these short bursts. This game continues until the net capital of the manipulators is in balance, i.e. there is the same amount of capital trying to force the market downward as their is in capital being expended to turn the trend. They don't know when this point has been reached.

So those who continue to force the market down further know that at some point they won't have sufficient capital to do it. At some point they have to stop playing the short term rally exploitation, and actually make the turn. If they try to continue to manipulate the market downward and don't have sufficient capital, then they get burnt on the turn. When enough manipulator money gets anxious about this, the long term trend finally turns. Then, the entire game is reset, but in the new direction.

So it's true that price is manipulated downward. But it is also manipulated upward. At the end of the uptrend, manipulators are doing the same thing, pushing the price higher than it would naturally be, like what happened during the Summer of 2011.

If you draw a long term (many years) line that smooths out all the manipulation trends, you'll see the underlying fundamental price trend.

[gunDriller]

one of the main effects of the fall in prices is to give miners and other producers the incentive to hedge their production, for example so they are guaranteed $1200 instead of not hedging and taking a chance on $1100 - or $1400.

i would like to see a PM miner who pays their employees partly or entirely 'in kind' - gold and silver.

[Sparky]

one of the main effects of the fall in prices is to give miners and other producers the incentive to hedge their production, for example so they are guaranteed $1200 instead of not hedging and taking a chance on $1100 - or $1400.
...

Yes, and this is bad if you want to see price increasing.

[ximmy]

They could prolong this for another couple years... "It don't matter to Jesus"

Jim Rogers: Fed's Tapering Tactics Will End in Financial 'Disaster'

Tuesday, 24 Dec 2013 02:32 PM

....."And then the bureaucrats and academics at the Fed will panic and start printing money again, and then everyone will say, phew it's OK.".....

But it's not OK, Rogers says. "It's a disaster for the world," he said. This is the first time that all the central banks are printing staggering amounts of money at the same time. There's an artificial sea of liquidity. . . . This is going to be a disaster in the end."......

Eventually the Fed's massive easing will have to come to an end, likely forced by financial markets, Rogers says. "It may not be 2015 or 2016, but this can't go on," he said......

Peter Schiff, CEO of Euro Pacific Capital, agrees with Rogers that the Fed is unlikely to stay committed to its tapering policy......

"I suspect that when the economic data begins to disappoint, the Fed will quickly reverse course and increase the size of its monthly purchases," he wrote on Yahoo. (http://finance.yahoo.com/blogs/breakout/peter-schiff--despite-taper--fed-bond-buying-isn-t-going-anywhere-195423236.html)