So what are the likely short-term consequences of this? Has a similar phenomena like this happened before?
We were saying it was consolidating at 1300, 1200, 1100, 1000...If the 10 year yield continues to rise we could be waiting a long time for gold to return to $2000 and silver at $30. I am a patient man, however...
He's alive!
To quote South Park: "aaand it's gone". Key support for gold at circa 1696 has been breached, time to do some more stacking...
Gold has literally been teetering on 1696 since JPow spoke, it's agonising to watch!
You were in that low and you didn't sell at >1300? My initial entry prices were a bit higher than yours (up to 650/700) but I completely exited around 1350. Then I went back in at 1100 and I've been underwater ever since haha.
I've bought PSLV for a while (never touched JPM SLV scam) but there really is no substitute for holding physical. As they say, if you don't hold it then you don't own it...
Is anyone here stacking silver as well? Physical premiums are insane at the moment plus there's VAT if you take delivery. I'm just continuing to stick with gold for now...
As I said in my post today, the whole of corporate America and American consumers are so hopelessly dependent on debt that the Fed needs to keep rates artificially low so I expect the announcement to be significant yield curve control. This is of course good for gold but I am going to hold off anymore physical purchases until it's confirmed. Who knows, markets might have a tantrum if they don't hear the right things from JPow and then gold sinks below 1,700, and from there it could be a very long way down.
If JPow doesn't signal the Fed is willing to implement significant yield curve control then unfortunately gold is going to crash through 1,700. It's defended that key support level several times in the last week (even just 10 minutes ago) but it really is squeaky bum time later.
Do we have other physical stackers here? I've been accumulating more gold since it went south of 1,800. It appears that 1,700 is the key support level, which it has defended several times in the last week. However, if JPow doesn't signal heavy duty yield curve control later today then I fear 1,700 will be breached and from then on it could fall a lot further in the short term...
I'm going to wait for his speech at 1705GMT before making some more purchases. I don't think he has a choice but to intervene though given how hopelessly indebted most US companies and consumers are. Lowering the 10 year yield will of course be a good tailwind for gold and lead to more weakening of USD.
It's probably been offloaded under the table to the cartels to guard the mines.
It's a dose of realism from people who've seen this craziness before, I got in at 450-500p and exited circa 960p so I enjoyed the ride, however...
EasyJet's valuation, like so many others these days, is absolutely insane. A budget airline that's been flying half empty planes around Europe on a reduced schedule for most of the past year, forced to offload assets and take a government-backed loan to survive has a market cap of £4.6bn and a SP on par with early March last year.
If you can't see what's dangerous about that then you'll have to find out the hard way...This is a 100% synthetic equity bull market fuelled by cheap central bank money and a zero interest rate environment.
Just perusing the huge premiums on physical silver tells you everything you need to know about the market. The SLV prospectus change was also very illuminating, covering themselves by conceding they in all likelihood won't be able source the physical to back the inflows thus investors will be cash settled, that's why I'll only touch PSLV. I'd like to stack physical silver but the premiums are ridiculous now plus there's VAT if one takes delivery.
FRES SP today is deeply frustrating, I am genuinely surprised even though I'm as cynical as **** when it comes to MMs and algos monkey hammering FRES down. Cable strengthening really hasn't helped FRES this year as well, GBP has been on quite a run in 2021.
You're referring to silver shorts or FRES shorts (or both)?
Wow, just wow. Sub 900p after those sterling results, yes PMs are subdued at the moment as 10-year yield tick up but that can change overnight.
"Investors take a long term view. £13 by summer".
I'm genuinely curious, when someone makes such an asinine comment as that, do they genuinely believe it or are they simply parroting something from a GCSE Economics textbook?
We are in the midst of a 100% synthetic bull market driven by central bank cheap money and zero interest rates thus a hunt for returns in any place people can find it. EasyJet has been flying at a fraction of capacity on hugely reduced schedules for the last year and needed a government-backed loan to survive. The current share price is absolutely laughable and trading at an insane valuation , although you won't find me complaining as I was in from circa 450-600p.
Not to be a pedant but gold has been a very poor inflation hedge since 2011, it's actually a hedge against negative real yields hence gold's strong performance last year. If 10 year yields remain elevated then gold is going to continue to be subdued. However, I suspect the Fed will implement yield curve control to push yields down closer to what we saw last year which will pave the way for another gold run. On FRES, I'm estimating an 8-12% bounce from results day, other thoughts?
The spivs are monkey hammering FRES down again before results day next week so they can hoover up truckloads of shares at <1000p, then offload them all once SP pops. Silver is taking a battering because March contracts expire tomorrow which always means monkey hammer time. Strap on your armbands, tighten your crash helmet, get up from your chair and bellow out: WE LIKE THE METAL.
Who here has experience of selling physical silver in the UK? Specifically from a liquid/illiquid, price premium/discount perspective. I've had exposure to silver through miners and ETFs (including physical) for a while but now intend on accumulating physical bars and coins, particularly after the recent price drops.
I have heard (but not necessarily well-founded rumours) that selling physical silver is actually quite onerous with few serious buyers who lowball you and surprise discounting on spot price. Would prefer to hear from the oldies who've perhaps done many transactions over decades. Thanks in advance.