GREY:ALXDF - Post by User
Post by
nelson11on Jul 08, 2015 9:26pm
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Post# 23905553
Why Millions of People Might Have to Sell Their Gold&SilVER
Why Millions of People Might Have to Sell Their Gold&SilVER
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The price of silver plummeted 4.5% on Tuesday. It closed at $15.01/oz… its lowest close since February 2010.
Gold had a bad day too. It dipped below its 2015 low of $1,148.10 before recovering to close at $1,153.70. It lost 1.4% on the day.
Historically, people buy gold and silver for protection during uncertain times. Gold and silver have held their value for thousands of years through wars, depressions, and financial crises. When stock markets crash or paper money fails, gold and silver are a reliable store of wealth.
So with Greece’s default rocking world markets… and withChinese stocks crashing the most in 20 years… why are gold and silver struggling?
Louis James, editor of International Speculator, blames China.
The Chinese stock market has crashed an incredible 28% in 16 days. And China’s 1.4 billion people are the biggest buyers of gold in the world.
Here’s Louis:
The world’s biggest gold buyers are suffering a major liquidity crunch. Many won’t have the cash to buy anything, not even gold. Worse, hundreds of Chinese stocks are halted and huge numbers of investors are facing margin calls. That means that many who own gold will be selling because it’s the one thing they can get a bid on.
When a large number of buyers are forced to become sellers… well, counterintuitive days like today can make sense.
If I’m right about this, precious metals will slide until the liquidity crunch in China passes. We saw the same thing in 2008. But when this reversal happens, the rebound should be even sharper. Unlike most Americans or Europeans, Chinese people do see gold as an important form of wealth protection.
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