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975
Published:
13 y
Re: they halt gas going down but not silver?
what happens is, that John Q. Pubic gets a notion in his head to buy buy buy silver, but he has limited funds and can only buy so much until he's out of $$ - i.e., he cant create perpetual demand.
So he and his pals without even knowing one another buy as much as they can, until they can't buy anymore. The price gets driven up, and when those who trade commodities realize John Q. is done buying, they short it, knock the price way down, and John Q. Pube and all his buds lose 60% of the money they spent in a short while. The pros can sniff when the time is ripe, when John Q. and others like him have exhausted their ability to further demand.
As the price drops, many panic and sell their holdings just to minimize losses, further driving the price back to its true equilibrium, which in the case of silver according to me, is between about $17 - $22.
Its the same with any commodity - its a game of musical chairs, but driven by greed or want of a quick buck, instead of a record player. Doing the opposite of what the pack does has always been good to me.