Economic collapse and price controls on commodities!!

Eventually price spikes will be out of control, but I think first we will see shortages!!

Price controls tend to lead to shortages!

What will this mean for us potentially? Price controls and the free market tend to be at odds? So a farmer who knows he can get twice as much in China will gladly sell to China for double. Think... Oil, food, Precious Metals, imports will all be affected!

I really dont think anyone here cares...

Please people remember the gas lines of the 1970's because of price controls/lack of supply!!! Now imagine that on most commodities! That is whats coming!!

I agree.

At some point, the free market will win out!

what?

not carshing ??

The price for fuel is being manipulated higher in order to reduce demand.

But don't worry, it's for your own good.

I care OP. Were we paying $1.50 in 2007? I remember $4 or so in 2008. I found a photo I took from 1997 and in the background was a gas station sign with Regular at $1.24. After a google search [link to www.ioga.com]
it looks like oil was $23.52 a barrel in Jan 97. $46.53 a barrel in Jan 2007 and $91.71 a barrel in Jan 2012. The chart is Illinois Basin oil prices...whatever that means.

shortages already spotted
premiums on the rise

rumors of swiss banks acting like abn amro lately

Yes... So instead of allowing true price discovery, they are creating a shortage!!!

let's hope so!

The free market is a myth held by those who would like to get rich. Once rich, they shut the door on competitors.

Human nature and survival of the fittest. First get rich then talk about free markets.

Seems like Obama did an EO to take control of food in case it became necessary.

Have you pulled up your shrubs and started edible landscaping, just in case? LOL

I care, but your article is a little hard to parse.

For one thing, how is the gold price different from the gold spot price? The spot is the price quoted everywhere, and if you go to a gold seller like APMEX you will pay a premium above spot (their profit). You seem to be saying there's some other, "real", price. Tell us more or provide a link please.

The "real" price is the price it costs you to obtain 1 ounce of physical silver... Not the comex spot!

Even more absurdly, he seems to be suggesting that there is another market for gold other than the official exchanges. Whilst there probably is for granny's bracelet, I would suspect that the industry uses the regular routes, unless of course, they are the Mafia.

This is all BS. I have been trading gold for 5 years.

Every time the price approaches a large trendline, all the old longs stop losses get breached which causes the price to spike lower. As more and more buyers see the price crashing, they cash out which causes it to crash more. Then the computer algorithms on wall street also start selling and add to the mayhem.

It is about key price points, trendlines and algorithm trading.

The disconnect in spot price for example now in silver $22 and currently $31 is the best price in australia I can get a silver coin for, is purely because bullion dealers buy stock ahead of time and dont want to be caught with their pants down making a loss. The bullion price takes quite a while to fall, you cant expect dealers to risk their asses, its just common sense.

Also why would they lower the price when everyone is even more interested in buying now at $3 or $4 lower than 2 weeks ago prices. Why lower the metal price down to match the spot price when people will all still happily line up for hours at currently prices. You dont put things on sale when they are selling perfectly fine already !

It's just common sense, not a fucking conspiracy every time the price of previous metals falls. Yes the manipulate it to some extent at key price points, but once it breaches the price it then free falls and is out of their control.

Don't be surprised if silver falls to $17 before we see it go back up again either.

Shortages?

You bet.

Of food.

AC 6496433 ..... The 'manipulators' have NO LINK; or, are you shilling for THEM ?

Either your comprehension level is 2nd grade, OR your background level of knowledge is close to zero. Go back to the TV. It has all the info your EVER going to need !

Here's hoping the whole damned mess collapes

Indeed.

I think you're right to an extent, the disconnect in spot vs retail is in large part because of existing inventory. This happens to some extent every time there is a large downward move, supplies seem to dry up.

But why do supplies dry up? Is it because there really is no inventory, or is it because the wholesalers are holding fast to wait and see if the market jumps back up, and when it doesn't, you see this increase in premium spreads to make up for the shortfall in spot in relation to the cost of the inventory.

It's common sense. But I think as we go through the existing inventory we'll see a narrowing of premiums as wholesalers buy more inventory at lower prices from metals producers, and the spot price begins to reflect down the chain once again...

Goldman relieving themselves of their short positions will make a difference, but honestly I would like to see this market on a definite uptrend before I begin to buy more physical metals anyway, and as soon as you begin to see a definite uptrend, there will be plenty of inventory on hand to handle the demand, and premiums will narrow down again.

All this assuming the world doesn't blow up in the meantime of course...

Just to give you some perspective: In 1918 the average car would cost you $360. An equivalent today is $5,216. You would need then about 9Kg of silver. Today you would need 7kg of silver. This math shows that silver is a bit overvalued in relation to 1918 but also shows what they did to the dollar (inflation).

Source: [link to thecostofliving.com]

What the junkies looking for quick profit dont realise is that as soon as gold price goes back up to the previous resistance line which it fell through, at around $1520 per ounce or somewhere there, it will hit a ceiling and then fall straight back down again.

Once you break down these critical price levels, it doesnt just go back up, the algorithms take full advantage, i wont be surpised to see them sell every new price climb for the next 6 months until people get tired of being ass raped and just give up trying to buy, the price will then drop again sharply and only then will it have a chance to make it back up, once the big boys have had enough rapeage of the general public who think the price has bottomed right now.

I set my sell price at 1515 two years ago and wasnt even watching the market last week when it crashed until a day after the crash, no surprise once it broke 1520 what was gonna happen and im only a noob compared to the wall street guys, do you think i am closing my short sells just yet ? hell no.

Highly astute observations, OP.

Makes much sense.

Thank you.