If the stock market falls dramatically in the next 1 to 2 weeks, like I think it might, do you think gold and silver would at first drop and then go up, or would it just start heading up?
Trying to figure out if I should hold off on my buying or not.
price will probly come down in the next 6 weeks but depending on what you are buying the price may not drop. IE proof buffalo coins. the price of gold may drop saving you 50 bucks on a proof buffalo but the mint may stop selling them by then.
It is usually not the stock market that has a significant direct affect on precious metals. Precious metal usually changes based on the strength of the US dollar compared to other currencies. The dollar has been gaining strength. The question is will it continue?
From seekingalpha.com : "Some people expect that US monetary policy will prompt the risk of hyperinflation, resulting in a USD that will basically be toast. Over the long-term, the USD and many fiat currencies could be toast but the point is if the USD is trash, other currencies will be even worse at this point. I expect the USD to maintain strength in 2009 due to interest rate differentials and growing problems in some other previously favored sectors. The EUR was viewed as a “better” currency because the European Central Bank (ECB) had a single mandate of controlling inflation. Inflation is not a risk, deflation is the real risk, and that will spur the ECB to cut rates more than most expect. "
My gut tells me you'll see PMs stay within a stabilized range i.e. silver $15.50-$17/ ounce. If there was a risk of any dramatic market fluctuations, I would see it on the upside. Investors will be flocking to put their money into hard assets and PMs provide just that kind of protection.
As of late, when the dollar falls, precious metals as well as the stock market go up. I guess Wall Street is favoring a lower dollar to help our GDP. It would be interesting if some pro-business Gov't officials started to take notice and began talking down the dollar..... LOL Can you imagine what Gold would do if Bernanke called the USD toilet paper LOL :-)
Travl... although fiat paper is made from cotton, the new bills can be quite painful if used as toilet paper. I would suggest using the older silver certs!
Joe Weisenthal|Nov. 1, 2009, 8:49 PM | 2,988 |8 PrintTags: Markets, Stock Market, Gold That easy pattern of a weakening dollar and rising stocks and gold is showing further signs of breaking down.
With Japan tanking, the dollar is rising once again -- just like it did several days last week -- which augurs bad for Monday's open. It's also not helping gold (GLD)
Must use Buy It Now and PayPal.
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