What will PMs do?

[jim4silver]

I have a feeling that sometime this summer/fall, we are going to see something like what we did in 2008, but bigger this time. I predict that one or more BIG financial institutions are going to be having big problems, whether it is related to derivatives or something else. When that happened in 2008 the hedge funds, etc, unloaded their profitable PM positions to balance their losses on other things which functioned to take down PM prices.

However, many of those big traders now don't seem to have the same PM exposure they had back then from what I have read. So if their stocks, bonds, etc start to fall, they will have to sell something else to balance the losses.

Thus, I am wondering if the big money folks will jump back into PMs (ETFs, futures, etc, I know they are probably not going to buy bullion directly) if they need to bail out of their other financial products if said markets take a big hit.

Does anyone else feel like something big (and bad?) is brewing in the financial world and will soon rear its ugly head? I know I do and whatever it is, I hope it is PM positive this time.

PS Due to the fact that this is an election year, I am wondering what will be done by the current administration to counter all the bad financial data that keeps coming out like jobs, etc. It would seem to me that more QE is going to be announced this summer, which if it does will propel PMs greatly.

All my opinion.

Jim

 

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[585925]

I'd say it's anyone's guess, Jim. PM's haven't followed "the rules" for the past several years. Even within its own category, I couldn't have guessed that gold would surpass platinum in value. It's like riding a roller coaster you've never been on before and can't predict the twists and turns. As the saying goes, "the economy depends as much on economists as the weather does on weathermen." The economy has gone global, and with the great unrest in the world, anything can happen - like today's $88.00 jump.

 

[namster]

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[Marchas45]

I'm with you Jim big things are going to be happening within the next six months and PM's will be climbing. The Derivatives Market is going to take another big hit then all hell will break loose and nobody in the Goverment will be able to do anything about it.

They are also sitting on QE3 and it will probably come out just before the elections but it won't do any good except a rise in the PM's. Also T-Bonds are climbing and guess who's buying those? right the Goverment fleecing the public one more time before the collapse. Keep Stacking. Charlie