US downgraded to AA.......silver skyrockets on Monday morning?

[cdickrun64]

Well, S&P downgraded the US Govt......what is your opinion as to the price of silver on Monday at the close?

[Gilmore Happy]

You would think higher...but sadly the markets are contolled by the people who want PM's supressed, and the common man to be poor. Good thing most of us on the forum are not common...

[Bentfork]

It will be anyone's guess considering commodities prices are not directly tied to the economy as folks are widely mistaken. Just because the economy tanks doesn't necessarily mean commodities will go up. I like seeing gold and silver going up as anyone else does. But it's bad for the economy of the country for commodities to skyrocket. Plus as I like to point out to folks, the amount of silver we find isn't going to keep us folks from starving in the end. Even the filthy rich will be in trouble so what we find is insignificant to our individual survival.

[JJTheisen]

I believe when all is said and done, it will literally only be silver and gold, and paper money will be non-existent. Regardless of what happens with the government, it will come down to precious metals in my opinion.

HH
JJ

[Bentfork]

I believe when all is said and done, it will literally only be silver and gold, and paper money will be non-existent. Regardless of what happens with the government, it will come down to precious metals in my opinion.

HH
JJ

We might go back to gold and silver as the standard. That being the case, paper will still be around and its value will be based on gold and silver as it should have been all along. Silver and gold coins might be put back into circulation, but the costs of having precious metals as the medium of exchange over paper is not cheap. Coins cost too much to manufacture and handle. Unless we want to outsource that to China too!

[cdickrun64]

My opinion is that people who buy silver and gold do so as a flight to (relative) safety, instead of stocks, bonds, or money markets (soon to have a NEGATIVE return, paypal just canceled all money market options).......the stock market is obviously going to tank on Monday morning, and silver/gold should do very well.....

[jim4silver]

Back in 2008 when stocks tanked, so did silver (went from 21 to 9). Many hedge funds and other institutional investors dumped their profitable trades (PMs) to offset their losses in stocks. Stocks tanked this past week (probably because many knew this was coming) and so did silver. The main price control of silver is not individual physical buyers like many here, but is instead tied to futures and other places where large players buy and sell. If these guys panic and sell they can cause a huge drop fast just on trading paper (like when it recently went from near 50 to 33).

I believe if stocks tank Monday, silver and probably other PMs will fall too (gold the least). Long term I am still bullish on PMs, but short term I still think we will get a correction into the low 30s/high 20s before we take off again. Might be a good last chance to get some lower cost metals.

Just my opinion.

Jim

[ivan salis]

its no "mistake" that S & P make the "announcement" on the weekend end to allow all the "big boys and girls" the chance to set up their "plays" so they will be in proper position to profeit on monday -- if one "knows" the markey is going to tank -- by "shorting the market" one can make a ton of money .

many uber wealthy people "shorted"the market when 9 /11 occured -- they "knew" the markets would fall and played it to do so.

[jim4silver]

its no "mistake" that S & P make the "announcement" on the weekend end to allow all the "big boys and girls" the chance to set up their "plays" so they will be in proper position to profeit on monday -- if one "knows" the markey is going to tank -- by "shorting the market" one can make a ton of money .

many uber wealthy people "shorted"the market when 9 /11 occured -- they "knew" the markets would fall and played it to do so.

The real easy money shorting was made this past week, before the announcement. In my opinion there is a high likelihood many in the big money circles knew this was coming before it was announced and placed their bets accordingly.

Anyone wanting put options on stocks now will pay mucho for the premiums as compared to last week, when many thought the debt ceiling bill being passed would be bullish for stocks. If you aren't already short on stocks or already own your put options, it might be hard to get in on Monday if stocks wind up getting slammed right from the start.

It is possible that the stock market will not fall for too long though because at some point in time the big traders will see an opportunity to ride it back up for some quick profits. Also might be a good time for QE 3 to be announced to save the day if the stock market does wind up taking a huge hit.


Jim

[ImpurestStewart]

All I have to say is we can speculate til we are blue in the face but in the end We are just gonna have to hang on for the ride. The USA has been in worst postions before. We will make it. We still need to vote any big government politician out in november. Screw Romney. We need a real leader. If romney gets the nomination I will not vote. There is no point. It's like trading an ounce of gold for 42 ounces of silver. Same old ****. Same value. Washington needs to be reformed. And quickly.

[TheRockDoc]

I have a question for the folks who might be more educated in this arena then myself. How realistic is it to go back to a silver and gold standard? To me it just doesnt seem possible. It just seems like there would not be enough of either to create enough "money" for an economy to function. Lets say there is enough right now, but the world population is exploding, and so are the industrial uses for gold and silver, all the while the worlds gold and silver is becoming less and less, and harder and harder to get... It just seems hard to imagine for me. Any thoughts?

[Jeep]

Ah, it will be interesting, more media hype then anything.

Being that the US has a split rating and only the S&P downgraded us,

Moodys and Fitch has reiterated their stand of AAA rating for the USA.

Germans said it was a "brave move" by the S&P but who knows how it will play out.

Waiting on word from the G7 to appear in print

[clovis97]

I have a question for the folks who might be more educated in this arena then myself. How realistic is it to go back to a silver and gold standard? To me it just doesnt seem possible. It just seems like there would not be enough of either to create enough "money" for an economy to function. Lets say there is enough right now, but the world population is exploding, and so are the industrial uses for gold and silver, all the while the worlds gold and silver is becoming less and less, and harder and harder to get... It just seems hard to imagine for me. Any thoughts?

I'm not overly educated on the subject, but I understand the basics behind the theories.

Personally, I think it would be difficult to go back to a gold standard. There have been billions of dollars printed by many presidents over the years. Even if we did go back to a gold standard, where would the dollar be rated?

I read an in-depth article recently that said it would be nearly impossible to go back to a gold standard, unless, the economy and currency collapsed entirely, and we had to start all over.

Until it really happens, everything is still a theory or opinion.

[SFBayArea]

You would think higher...but sadly the markets are contolled by the people who want PM's supressed, and the common man to be poor. Good thing most of us on the forum are not common...

The problem is that people love paper.. easy convenient.. no need to store...

Unfortunately that's why the electronic traded paper crap dominates over the physical market. People want to get in one day and sell the next on their computer. It's harder to do if you have physical.

It's really makes you wonder how much of what's out there on the COMEX and ETF's are phantom. It would be easy for them to create extra gold or silver on paper just like money printing. Who would know about it? other than them.

[SFBayArea]

I have a question for the folks who might be more educated in this arena then myself. How realistic is it to go back to a silver and gold standard? To me it just doesnt seem possible. It just seems like there would not be enough of either to create enough "money" for an economy to function. Lets say there is enough right now, but the world population is exploding, and so are the industrial uses for gold and silver, all the while the worlds gold and silver is becoming less and less, and harder and harder to get... It just seems hard to imagine for me. Any thoughts?

I'm not overly educated on the subject, but I understand the basics behind the theories.

Personally, I think it would be difficult to go back to a gold standard. There have been billions of dollars printed by many presidents over the years. Even if we did go back to a gold standard, where would the dollar be rated?

I read an in-depth article recently that said it would be nearly impossible to go back to a gold standard, unless, the economy and currency collapsed entirely, and we had to start all over.

Until it really happens, everything is still a theory or opinion.

That is true.. it's because of the world's population. There wouldn't be enough of the stuff to be used as money for all of the world.

[hombre_de_plata_flaco]

I think gold will rise when trading opens @ 6:00 PM in Asia IMHO.

There is no telling what silver will do. There is a reason it's called "The Devil's Metal". It's an extremely volatile commodity.

[jim4silver]

I have a question for the folks who might be more educated in this arena then myself. How realistic is it to go back to a silver and gold standard? To me it just doesnt seem possible. It just seems like there would not be enough of either to create enough "money" for an economy to function. Lets say there is enough right now, but the world population is exploding, and so are the industrial uses for gold and silver, all the while the worlds gold and silver is becoming less and less, and harder and harder to get... It just seems hard to imagine for me. Any thoughts?

RocDoc,

Basically the only reason to have a gold or silver standard is it keeps the value of the currency in line so to speak. Back in the day there was something called "convertibility". Thus, if you had a paper dollar you could go to the bank and trade it for one dollar's worth of gold. I don't know this for sure, but I doubt that back then every dollar floating around was backed by the requisite amount of gold per se. But everyone knew that if they wanted it, they could trade their paper for gold as it was guaranteed by the gov. Thus, if the gov wanted to print more money, they would in theory have to get more gold to back it up in case everyone wanted gold for their paper. Also back then the price of gold and silver was fixed by the gov and it did not fluctuate like a commodity as it does today. It would be difficult today to back a currency with something that fluctuates in price as much as gold and silver do.

While I believe the only thing that can save our economy and dollar is to back the currency again because it would stop endless printing, it will never happen in my opinion. The reason is that the printing press for dollars could not function like it has with backed currency. There is too much gov debt and we just created another 2.5 Trillion worth.

Maybe if someday down the road the dollar crashes or we default and they have to come up with a new currency they can have one backed by a "basket" of commodities to give it more credibility in the world. I don't think they would ever have a convertible currency again though. I don't know how it could be proven that the new currency was really backed by anything if you could not go into a bank and swap your paper for the commodity backing it (assuming it was a PM of some type). I guess everyone would just have to believe it?

As far as circulating PMs as currency, I don't think we will ever see that. Not enough to go around for all the dollars floating around out there.

All just my opinion.

Jim

[quiksilver]

It will be anyone's guess considering commodities prices are not directly tied to the economy as folks are widely mistaken. Just because the economy tanks doesn't necessarily mean commodities will go up. I like seeing gold and silver going up as anyone else does. But it's bad for the economy of the country for commodities to skyrocket. Plus as I like to point out to folks, the amount of silver we find isn't going to keep us folks from starving in the end. Even the filthy rich will be in trouble so what we find is insignificant to our individual survival.

Actually most commodities like gold and silver going up are not the cause of the bad economy but are a common effect of bad economy caused by bad economic policies.

[quiksilver]

All I have to say is we can speculate til we are blue in the face but in the end We are just gonna have to hang on for the ride. The USA has been in worst postions before. We will make it. We still need to vote any big government politician out in november. Screw Romney. We need a real leader. If romney gets the nomination I will not vote. There is no point. It's like trading an ounce of gold for 42 ounces of silver. Same old --deleted--. Same value. Washington needs to be reformed. And quickly.

Actually your analogy is backwards , gold and silver have value , maybe an analogy of dog poo and dead skunks would be more on target

[ImpurestStewart]

All I have to say is we can speculate til we are blue in the face but in the end We are just gonna have to hang on for the ride. The USA has been in worst postions before. We will make it. We still need to vote any big government politician out in november. Screw Romney. We need a real leader. If romney gets the nomination I will not vote. There is no point. It's like trading an ounce of gold for 42 ounces of silver. Same old --deleted--. Same value. Washington needs to be reformed. And quickly.

Actually your analogy is backwards , gold and silver have value , maybe an analogy of dog poo and dead skunks would be more on target

snicker snicker