Why Gold and Silver Price Goes Down?

Contact email istockmoney@yahoo.com Why Gold and Silver Price Goes Down? 25% Discount of my Ebook strategy. Price 0. On the first February the price will …

16 thoughts on “Why Gold and Silver Price Goes Down?

  1. Sang Kim

    If you stop looking at things with dollar value (amount) and look at things
    with the purchasing power of precious metals then you start to see what is
    in gold and silver. paper currency market is controlled by the Federal
    Reserve, which is not even our government. If you want to spend physical
    gold/silver you can take it to where they are accepted as legal tender –
    they are countries that use gold/silver as money. When dollar was first
    being printed, price of a car was $300. Now average car price runs
    $30,000. Since purchasing power of the dollar is keep going down,
    following your logic that it would be stupid to invest/hold in US
    currency? My answer is YES. If I am going to hold something for long time
    for the sake of preserving purchasing power I rather hold it using gold or
    silver and not in US currency. Another way of looking at it is that $100
    today does not have the same purchasing power of $100 years from now.
    Sure, with US dollar value of gold/silver went down in past couple of
    years. But do you know that purchasing power of dollars also went down in
    this time? People used to make comfortable living with $30K income. Now
    it is considered as border line poverty due to the destruction of the
    dollar purchasing power. If you log into BLS, plug in $50K in inflation
    calculation for 1960 and plug in today it will tell you that calculating
    inflation it would be worth about $300,000. We ask why our average family
    income is far higher than 1960s and has worse living standard? Destruction
    of purchasing power of the dollars. In 1960s our currency was backed by
    dollar. 2015 our dollars are NOT backed by gold. Lets say you hold stock
    XYZ and face value doubled within 6 months. Ok great! but what if
    purchasing power of dollar dropped 50% during this time. What have you
    gained? nothing. US increased M2 supply by 300% in past 5 years. This is
    why I hold gold & silver. Is kind of insurance, but if market crashes all
    that purchasing power has to go somewhere – and we precious metal investors
    believe that it would go to gold, silver, and oil.

  2. jedivind

    I agree with your logic on investments. But here’s the main misconception –
    (Physical) Gold and silver or any commodity for that matter are HEDGES
    (insurance policy) against inflation and currency collapse. They are NOT
    investments. If you’re in it to get rich quick, then you’re buying for the
    wrong reasons and you deserve to lose. When you buy them as a hedge, the
    changes in nominal price over the short term makes no difference. They are
    just a savings account with REAL, PHYSICAL assets – doesn’t matter what
    those assets are, they will always have some value and never go to zero.
    The only reason gold and silver are preferred over other commodities is
    because they are compact, durable and easier to store than other
    commodities. And gold has thousands of years of history as money and has
    kept up with inflation over long term. In your video you say, what do I do
    with Gold, I don’t need gold. True, they are just tools. But lets say you
    are saving for your retirement. Instead of paper assets, it is better to
    store some wealth in real assets that don’t just evaporate (unlike stocks).

    The point I make is this – All currencies and paper assets denominated in
    those currencies have a huge counter party risk in that they are under the
    control of bankers and governments. These entities can do whatever they
    want with them. Do you want your life savings exposed to such counter party
    risk? What guarantee do you have that they will store their purchasing
    power?

    Another mistake is thinking dollar is money. It is not! It is just a
    benchmark to compare different commodities on the same yardstick so it
    makes trade easier. The dollar in itself has no value – it is just paper
    promises. It is only when you exchange this promise for real goods that you
    realize the gain. Until then, you’re just sitting on promises.

    Also, when you say gold lost value – it didn’t. The value of the dollar is
    just fluctuating (precisely my point, you don’t have control over the
    fluctuating value of the dollar). 1oz of gold bought in 2011 is the same
    1oz in 2014.

    My other gripe is about supply and demand. What you say is correct in a
    truly free capitalist economy. It doesn’t hold water in today’s crony
    capitalism. Lets take Gold and Silver as an example. The price is set by
    paper market and NOT by the actual PHYSICAL gold and silver supply and
    demand. As a result, people can just naked short sell paper and drive the
    price of the physical commodity down. This has nothing to do with supply
    and demand. It’s just a speculator’s game. In this scenario, there is no
    real price discovery mechanism to set the price of physical commodities.
    The same is the case with the stock market. Fundamentals don’t matter
    anymore. The Fed can manipulate the market in any direction they want by
    pumping more dollars into the market. You can never tell how the price is
    going to move because they no longer adhere to the fundamentals.

    Just my $0.02.

  3. dainius stanaitis

    I have a question off topic :I heard you say whenever you lose money you
    should exit the stock, but by saying “whenever” what do you really mean by
    that? 1 hour? 2 hours? 4 hours? i assume it depends on what style do you
    use but let’s just say i’m a swing trader and i lose 35 dollars out of 100
    in 1 or 2 hours should i exit it? or wait for the price to hit the stop
    loss which would be 40$ would that be swing trading hitting your stop loss
    at the first 4 hours? Should i not give it at least a day?

    And also I heard you saying that when the stock gose up you should buy, but
    the problem is stocks are constantly going up and down 1 minute the price
    is 6$ the it is 5$ so what do you mean by saying “when it’s going up you
    should buy”? do you mean that in days, hours or weeks?

  4. MyGman68

    I am glad I bought at $15 as it is now 15% higher in usd. I think we should
    do the opposite of what you say. You should not buy any silver and gold,
    leave it to the wise men.

  5. ferrari4sale

    Just to give you a head up, this video will upset silver/gold stackers.
    I’ve made a big mistake in the past and i admitted. 

  6. CHOCOLATE WHOLESALER

    The whole pesentation just explain in simple terms to FOLLOW AND TRADE WITH
    THE TREND AND NOT AGAINST IT..

  7. MyGman68

    When Gold and silver do tbeir accounting and are multiples higher in value
    in depreciated dollars. Then it does not matter if you bought gold and
    silver at 2011 prices. You will still be far ahead of the sheeple. Why do
    you think India, Russia, Germany , Holland are net buyers or trying to
    repatriate tbeir Gold. Whay are the central banks net buyers ? It looks
    like they have no faith in dollars that are backed by thin air.

  8. MyGman68

    Have you checked the rise of gold and silver lately. When the price of
    silver and gold is near or below production cost. It cant go much cheaper.
    So this is a buying opportunity. It is not too late to buy up. 

  9. tifany heyho

    I don’t know about my luck because last Friday (1-23-2015) I bet big almost
    70% of my money to gold mining so concern about that but still confident
    with my picked.

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