Gold. $90 drop this morning. Silver a greater percentage drop -7%

[empedocles]

Hmmmmmmmmmmmmmmmmm?

[dawg]

1. Idiot traders think the crisis is over because of Putin's vaccine.

[uponit7771]

3. +1, and Putin's announcement coming at or near another stock market inflection point !! S&P about to

... top all time high.

This is some bullshit, I wouldn't doubt Putin is putting money in to equities at this point. He has control over a lot of money in Russia

[empedocles]

6. Stock market inflections points can be very key

[dawg]

2. Oh, and also, Trump's "stimulus" ...

[empedocles]

4. On the same MSNBC page, 'predictions' of gold to $3000, $4000

[Gold had surged to 2000, ways to go to 4000 ]

[soothsayer]

5. That's good news for the dollar isn't it?

[empedocles]

7. Not really. Good news for the dollar is a stable dollar.

[reaganhood used to sound like trump does now, mindlessly calling both sides of a coin. 'Strong dollar' good to be strong reagan would say. Then there would be a trend reversal, reagan would mindless read, American goods will be cheaper, good for the economy.]

[empedocles]

11. The relatively stable dollar is why we can borrow so much!

[DFW]

8. Peanuts by comparison

The Gold price on March 1 was $1564. Silver was $16.39. Even by June, it was still under $19.

Gold dropped "all the way down" to $1950 from $2040. Silver dropped "all the way down" from $29 to $27.

Silver, even with the drop, is up over 40% on the year, and gold way over 20% up.

A much more drastic drop than this will be required to produce much more than a yawn in the precious metals markets.

[empedocles]

9. For a one day drop $90 is impressive, - and it will will trigger multiple signals.

Granted, its 1 day, and some will buy that. 'Some' won't.

[empedocles]

10. Kudlow announced the DJIA was on sale at just 29,000. Some bought.

Some yawned.

[DFW]

12. Gold and silver have been making wild jumps upward recently. A correction was due

On August 1, gold was $1974. On August 6, it was $2070. Today it is $1952.

Gold is $17 lower than it was two weeks ago, less than a 1% drop. Unless you are a fanatic speculator who has his eyes glued to screens monitoring the precious metals markets 24/7 (and I grant you there are more than a few such people), it's not causing any earthquakes.

As a contrast, Warren Buffet's BRK.A stock was about $290,000 on July 29, and is $321,000 today. It was around $340,000 before the stock market drop. Most of us normal mortals can't play in that league anyway, so this is just a spectator sport for the vast majority of us. But it helps to keep a long term perspective. Just one month ago, with gold at $1803, the metals markets were watching to see if gold would bust through the $1900 level, so now we really have to ask if a drop "down to" $1950 is all that big of a deal. It is still trading at pretty lofty levels. If it drops another $100 before this afternoon, it will STILL be way up there.

[empedocles]

13. I do own gold from much lower price, and not selling any of it.

However, longer term, my even money bet is that we are seeing a top around here, perhaps a 'blow-off top', and we will see a very significant decline because of the deflation of the economy.