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Metal prices - the big picture


#1

Hello Orchidians,

I am stepping away from my usual concerns with minute details and
trying to look at the Big Picture - probably inspired by the annual
ritual of resolving to do something or other.

I’m wondering how folks feel about precious metal prices in the next
year. Silver? Gold? There is so much going on with consumer demand
jumping or falling all over the place, with gov’ts getting ready to
print money at record rates - more info and trends than I can absorb
and make sense out of, so I’m hoping that the collective wisdom
amongst you all might help me form a mental picture. Should i buy my
year’s supply of silver now, for example?

Thanks and a very happy Solstice, Christmas, Hannukah, New Year, and
Resolution Season to you all.

Marty Hykin in Victoria BC where it NEVER snows. Don’t believe what
you see on the TV. I’m going out to pick some fresh bananas.


#2
I'm wondering how folks feel about precious metal prices in the
next year. Silver? Gold? There is so much going on with consumer
demand jumping or falling all over the place, with gov'ts getting
ready to print money at record rates - more info and trends than I
can absorb and make sense out of, so I'm hoping that the collective
wisdom amongst you all might help me form a mental picture. Should
i buy my year's supply of silver now, for example? 

This subject comes up from time to time. I believe it is a waste of
time trying to predict metal prices. I can construct 100 logical
scenarios pointing up, and another 100 pointing down. If you really
depend on metal prices, there is such thing as hedging. Just make
sure that you limit your activity to hedging only. I know a lot of
people who tried to enhance their income as well, and there is no
quicker way to a bankruptcy than through commodity markets.

Leonid Surpin
www.studioarete.com


#3

Marty,

No one knows where metal prices will be tomorrow, next week or next
year. Any number of unexpected things can happen to effect the
price. When you buy a years supply of materials at one time you are
speculating and tying up valuable resources in a tough economy. If
you have a record of what you have used in the past, it is better to
buy what is needed over the next few weeks or a month and then
reorder as needed. Sure you will be paying more for shipping ( which
is a write off against profits ) and you may not be buying at the
best price breaks but at least you will not be sitting on a large
supply if the market turns down.

Happy Holidays
Greg DeMark
www.natureinspiredjewelry.com


#4

Sorry but I think that there are much larger players in this world
manipulating the prices of gold, sliver, and oil. We are pawns and
the supply & demand explanations tossed to us are ploys to placate us
all. The big boys don’t have rules to follow. Good luck at guessing
what’s next.

Cynical with age,

Mark


#5
From what I've been able to understand from the research I've
done, gold prices have gone up because of "gold bugs," or
investors who buy up gold certificates (backed with gold, of
course). After 9/11, a lot of people started moving their money
into precious metals and copper, and in the last couple of years,
countries have been increasing their gold stocks as a hedge for
their economies. India and Russia have been some of the biggest
buyers. Gold prices have gone up because there just isn't as much
available to sell. 

Apparently, the weirdest feature about the current gold rise, is
that oil prices aren’t in tandem with the price of gold. I’m not
sure yet why those two are normally connected, but I’m still reading
up on it.

The only consolation I can offer, is that while suits jollyjack
around with materials fundamental to our livelihoods, that what goes
up, must come down. That’s as true in finance as it is in gravity.
We can only hope.

I wish everyone a Merry Christmas, and a Happy New Year.

Susannah Page-Garcia
Back in San Antonio, employed, and about to get her own place