Gold and Silver Prices – Been Here Before but This Time Is Different
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
silver-coin-investor.com / By Dr. Jeffrey Lewis / April 18, 2013
The precious metals have seen dramatic sell-offs before, although the primary difference between previous precious metal declines and the recent drop is the current shortage of physical metal.
It is also worth considering how well the commercial bullion traders are positioned for a rally after these past two days of sharply dropping prices, especially when the latest price drop came on top of a physical market signaling tightness all along.
The Developing Physical Shortage and Goldman’s Selloff Signal
Major dealers in North America and the EUseem to be out of physical precious metal stock almost across the board. This physical shortage had been developing for some time, in contrast to the 2008 drop.
In terms of the supply fundamentals, the loss of Kennecott’s Bingham Canyon mine last week, in addition to further postponements for Barrick Gold’s big Pascua Lama Project were as bullish as can be.
Goldman was also openly signaling the rest of the market by notably revising their gold price forecast lower just ahead of the big down move, followed by more major banks revising their price forecasts lower.
Thanks to BrotherJohnF
2013-04-19 10:34:03
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