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Message
Precious metals also dropping
Posted on 3/16/20 at 10:30 am
Posted on 3/16/20 at 10:30 am
I thought the point of holding part of your portfolio in precious metals was to hedge against times of uncertainty. Why the big drop in precious metals? I would think they would hold value or increase given the current conditions.
Anyone smarter than me willing to opine?
Anyone smarter than me willing to opine?
5
Posted on 3/16/20 at 10:34 am to iAmBatman
quote:Either the "fear factor" is starting to drop (remember when Warren Buffet described gold as a "fear index"?) or deflationary concerns are starting to kick in.
Why the big drop in precious metals?
Posted on 3/16/20 at 10:36 am to iAmBatman
I don’t know the answer but EGO is a stock I’ve brought up several times on here, a gold mining stock. Was $11 a few weeks ago and now below $6, hell was below $5 this morning.
Posted on 3/16/20 at 10:37 am to iAmBatman
It’s just indiscriminate selling. Traders at every major brokerage/hedge fund are getting the tap on the shoulder to get rid of risk.
Margin calls the past week haven’t helped.
Margin calls the past week haven’t helped.
Posted on 3/18/20 at 8:41 am to LSURussian
It begs the questions, if that asset class isn't acting like the hedge it was assumed to be, why keep diversify into metals?
Seems like I'd be in the same boat, regardless of whether I had money allocated to metals or SPY.
Seems like I'd be in the same boat, regardless of whether I had money allocated to metals or SPY.
Posted on 3/18/20 at 9:22 am to iAmBatman
Paper / derivatives markets are not precious metals. It's well known how long the big banks, especially JPM, has manipulated the price in the derivatives market by naked shorting contracts. Precious metals are in direct competition to the funny money, monopoly money Federal Reserve note.
Go try to get your hands on a bunch of physical. You can't.
Go try to get your hands on a bunch of physical. You can't.
Posted on 3/18/20 at 9:28 am to Hussss
quote:
Paper / derivatives markets are not precious metals.
When did I say they were?
quote:
Go try to get your hands on a bunch of physical. You can't.
I already own some
Posted on 3/18/20 at 9:34 am to iAmBatman
Good, hold on and never sell it.
This is economic warfare between us and China. Repo rates ran wild last September and volatility really started picking up in the bond market. China pulled their trillions out of our markets and the Fed has been running around like a chicken with their heads cut off
This is economic warfare between us and China. Repo rates ran wild last September and volatility really started picking up in the bond market. China pulled their trillions out of our markets and the Fed has been running around like a chicken with their heads cut off
Posted on 3/18/20 at 9:41 am to iAmBatman
I believe it is due to margin calls.
Posted on 3/18/20 at 9:42 am to Hussss
The day I take advice from you is the day I check myself into the insane asylum 
Posted on 3/18/20 at 10:01 am to iAmBatman
Why do you think Trump keeps referring to all this as the "China virus?"
Either:
a) China released this on purpose as it is like an anonymous nuke if it kills enough people
b) It's a global farce so that the lid is on just how much China is dominating the global economic war
Russia put the bullet in the head of the oil market. We will soon see if they are on our side. This is ALL ABOUT the next global reserve currency.
ETA: I thought the market would start pricing this in 2019 but only the oil market started pricing it then.
Either:
a) China released this on purpose as it is like an anonymous nuke if it kills enough people
b) It's a global farce so that the lid is on just how much China is dominating the global economic war
Russia put the bullet in the head of the oil market. We will soon see if they are on our side. This is ALL ABOUT the next global reserve currency.
ETA: I thought the market would start pricing this in 2019 but only the oil market started pricing it then.
This post was edited on 3/18/20 at 10:05 am
Posted on 3/18/20 at 10:04 am to Hussss
quote:Because the virus originated in Wushan, China.
Why do you think Trump keeps referring to all this as the "China virus?"
Take your tin-foil hat, political conspiracy theories to the Poli Board.
Posted on 3/18/20 at 10:11 am to LSURussian
I honestly don't like politics. It's too devisive. We need to all come together if the UNITED States is to survive and thrive through all the turmoil.
Posted on 3/18/20 at 10:47 am to Hussss
Well, then, just stop posting on this board.
Your investing predictions have been wrong 100% of the time.
100% of the time.
100% of the time.
100% of the time.
100% of the time.
Just yesterday you pronounced the market had hit its low. The S&P is down over 100 points since then.
New posters who have not followed your posts on this board for the last 2+ years might not know how unknowledgeable you are when it comes to financial markets. You're misleading them.
Your investing predictions have been wrong 100% of the time.
100% of the time.
100% of the time.
100% of the time.
100% of the time.
Just yesterday you pronounced the market had hit its low. The S&P is down over 100 points since then.
New posters who have not followed your posts on this board for the last 2+ years might not know how unknowledgeable you are when it comes to financial markets. You're misleading them.
Posted on 3/18/20 at 10:58 am to LSURussian
Posted on 3/18/20 at 11:48 am to Hussss
What are you rolling your eyes at? He isn't wrong.
Where you said the bottom was put in on the morning of March 17
On 3/17 at noon, the S&P 500 was at 2,506...it is currently at 2,365...quite a bit lower than your "bottom"
Where you said the bottom was put in on the morning of March 17
On 3/17 at noon, the S&P 500 was at 2,506...it is currently at 2,365...quite a bit lower than your "bottom"
Posted on 3/18/20 at 12:26 pm to Hussss
quote:
Go try to get your hands on a bunch of physical. You can't.
No shite, I was going to pick up a few kilo bars of silver from JMBullion yesterday and they are sold out of everything 10oz or over except 100oz.
Either they are just avoiding sales and waiting for a rebound or something very strange is going on in the PM market. Sold out due to demand in the face of falling prices is an odd bird.
Posted on 3/18/20 at 12:45 pm to LSURussian
quote:
Either the "fear factor" is starting to drop (remember when Warren Buffet described gold as a "fear index"?) or deflationary concerns are starting to kick in.
I think deflationary concerns are a major factor. The high debt loads of businesses and people may create a deflationary spiral. What happens if over the next month the only thing people buy is grocery food and medicines? That would be a massive change in demand and we may even see long term demand destruction due to permanent behavior changes.
Posted on 3/18/20 at 12:50 pm to B4YOU
quote:That's not going to happen so why play 'what if' about it?
What happens if over the next month the only thing people buy is grocery food and medicines?
ETA: I really appreciate your comment about it. It proves that fearfulness is permeating the markets. That's a good thing, btw.
"Be fearful when others are being greedy. Be greedy when others are being fearful." - Warren Buffett
This post was edited on 3/18/20 at 12:53 pm
Posted on 3/18/20 at 1:58 pm to iAmBatman
Gold will recover faster than stocks over the course of a couple years in my opinion
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