The rumor (soon to be confirmed) of “an imminent downgrade” of many large UK AND US banks has sent the markets reeling today. THIS is given as the reason for Gold and Silver dropping $40 and $1.50 respectively. I am sorry but I must call the loudest BULLSHIT in my lifetime. The reason many investors bought Gold and Silver in the first place is because they were fearful of a banking meltdown. Think about this for a moment, downgrades mean what? That the banks are in such bad shape that the bought and paid for ratings services can not hide the rot any longer. It is obvious to even little kids that when all is said and done, the banks are broke (not to mention many sovereign governments) and WILL end up in a meltdown scenario.
So…we, as prudent, common sensed investors get to watch while TPTB trash Gold and Silver with paper contracts to prove to the world that Gold and Silver are not safe havens. I am very very sorry but…they are! Ask yourself this, if you woke up one morning to see the markets seizing up, banks closing and CNBC goat heads talking about a market holiday, other than food, and guns to protect that food, what…would you want to own? Dollar bills under your mattress or Gold and Silver? Well, you might say Dollar bills but that will probably only work for a week, maybe 10 days until people no longer accepted them. The answer is Gold and Silver. Which is exactly why on a day like today where the MOST bullish Gold and Silver news is coming out…they are down. They are down for public perception and public perception alone. They CANNOT be seen as the safe havens that they really are OR the Ponzi scheme would end here and now. In a free market, do you believe this type of action would ever occur amongst rational investors? You know the answer to this! If you don’t, well, then go out and sell all of your Gold and Silver like good little sheep.