Gold and Silver down a lot today

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InvestorNewb
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Gold and Silver down a lot today

Post by InvestorNewb » Fri Apr 12, 2013 12:27 pm

Hello,

Gold and silver are down ~4% and ~4.5% respectively today (so far).

I wonder why such a sharp decline?
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)

Jfet
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Re: Gold and Silver down a lot today

Post by Jfet » Fri Apr 12, 2013 12:30 pm

I think it is because they are printing more gold and silver...oh wait...

Call_Me_Op
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Re: Gold and Silver down a lot today

Post by Call_Me_Op » Fri Apr 12, 2013 1:30 pm

That's some safe haven.....
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rmelvey
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Re: Gold and Silver down a lot today

Post by rmelvey » Fri Apr 12, 2013 1:57 pm

Gold is driven more by animal spirits than other markets. Goldman put out a sell piece the other day which can have a stronger effect on an ambiguous market like Gold because at no point do "value" guys step in to push the price back up because FCF based valuation is meaningless for gold.

Additionally, the Troika is pushing for Cypress to sell some of the gold holdings to pay off their debt. The gold market is anticipating that, and perhaps the idea that other countries will do the same.

Personally, I am staying the course. I will continue to rebalance my portfolio of stocks, bonds, bills, and gold according to my IPS and AA because when focusing on total portfolio value in real terms, gold helps me achieve a stable ride! :D

Grt2bOutdoors
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Re: Gold and Silver down a lot today

Post by Grt2bOutdoors » Fri Apr 12, 2013 2:05 pm

It might be because of this headline "Yukon Cornelius announces a sharp curtailment in the annual dividend after having found "Nuthing"

In other news, crude oil is declining due to expected sharp economic expansion. :oops:
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pjstack
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Re: Gold and Silver down a lot today

Post by pjstack » Fri Apr 12, 2013 3:18 pm

I think you will find that if you try to buy silver (real silver coins or bullion) you have to pay a "premium" that brings the actual price back up to approx. $30 per troy oz.

Unless of course they are mysteriously "out of stock".
pjstack

FafnerMorell
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Re: Gold and Silver down a lot today

Post by FafnerMorell » Fri Apr 12, 2013 3:22 pm

I hear all the cool hedge funds are dumping their paper gold to get into bitcoins.

That said, just about everything will have occasional fluctuations of 5% - and generally for no apparent reason other than what the talking heads make up after the fact. If you can't handle a bit of volatility, definitely stay away from stocks (1987, etc).

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Clearly_Irrational
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Re: Gold and Silver down a lot today

Post by Clearly_Irrational » Fri Apr 12, 2013 3:31 pm

GDP expectations for next year are good, unemployment is down, the Fed is talking about ending QE, etc. I've been expecting a decline for a while now, in fact I expect it to go down farther than it already has.

Is it a bull market pullback or switch to a bear market? On that front I don't know. My rules tell me to get out when real interest rates are back above zero so I'm hanging in there for now.

wesleymouch
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Re: Gold and Silver down a lot today

Post by wesleymouch » Fri Apr 12, 2013 3:34 pm

When there are negative real interest rates gold has positive returns over a 12 month or longer holding period. When real rates become positive by greater than 2% its time to dump gold.

staythecourse
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Re: Gold and Silver down a lot today

Post by staythecourse » Fri Apr 12, 2013 3:50 pm

You folks do realize ANY asset goes up and down on any given day for no reason what so ever don't you??

Boy no wonder why folks are so susceptible to market timing. Folks spend way too much time worrying about the market activity over any short time.

I never see anyone complain when stuff goes up 4% in a given day. Folks don't seem to understand volatility cuts both ways. It goes UP and DOWN!!

Good luck.
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ruralavalon
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Re: Gold and Silver down a lot today

Post by ruralavalon » Fri Apr 12, 2013 3:54 pm

InvestorNewb wrote:Hello,

Gold and silver are down ~4% and ~4.5% respectively today (so far).

I wonder why such a sharp decline?
Everyone has figured out that gold and silver pay no dividends or interest :( .
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stratton
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Re: Gold and Silver down a lot today

Post by stratton » Fri Apr 12, 2013 3:57 pm

InvestorNewb wrote:I wonder why such a sharp decline?
Who the heck knows?

I'll make up one for you...

The President put on a top hat and opera cape said, "I'm going confiscate all the gold to make Saddam Hussein like furnishings for the White House." while twirling his magnificent mustachios.

Good enough for you?! :P

Paul
...and then Buffy staked Edward. The end.

Ed 2
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Re: Gold and Silver down a lot today

Post by Ed 2 » Fri Apr 12, 2013 4:01 pm

Gold bugs,where are you??!! :wink: :wink:
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Clearly_Irrational
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Re: Gold and Silver down a lot today

Post by Clearly_Irrational » Fri Apr 12, 2013 4:09 pm

Ed 2 wrote:Gold bugs,where are you??!! :wink: :wink:
I'm still happy with my position, I knew it was volatile when I bought it.

For a short term answer it's been obvious we were in a descending triangle for at least a week, P&F charts suggest we have probably another 20% to go, we broke the six month channel line so that seems likely.

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Re: Gold and Silver down a lot today

Post by LadyGeek » Fri Apr 12, 2013 4:16 pm

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