The Dollar Rallies, Precious Metals Sink

[Egg]

Kill a man, make a buck.

The euro headed for its biggest slide against the dollar since November on Thursday after the European Central Bank hinted interest rates were unlikely to rise next month, short-circuiting a rally that had driven the currency to a 17-month high.

The signal by ECB President Jean-Claude Trichet on rates added to a growing sense of risk aversion in markets, sparked by signs of slower growth in the United States and some other developed economies, and spurred traders to bail out of high-yielding currencies and commodities.

The dollar and yen were the main beneficiaries, as record low interest rates made it profitable to borrow in those two currencies at no cost to finance more lucrative investments.

http://www.reuters.com/article/2011/05/ ... 4920110505

Silver prices tanked after another margin hike from the CME and a stronger U.S. dollar, taking Gold prices along for the ride.

http://www.thestreet.com/_yahoo/story/1 ... &cm_ite=NA

[Royal]

They were both inflated anyways.


Gold and SIlver bubbles.

[lkwalker]

People are beginning to realize that you can't eat gold. It has no intrinsic value. At the end of the day it is just more worthless shit.

[Pigeon]

People making the money are those selling the gold.

Societies have used beads and shells for money. Banks want it to be plastic online numbers - easier to rip everyone off. They just keep making their number bigger to stay on top and run the system.

[lkwalker]

All money- beads, metals, scrip... is a substitute for reality. It is a convenience and a contrivance and a replacement for trust.

[Pam]

Gold is used in the treatment of Rheumatoid arthritis, so it has some worthwhile uses

[Pigeon]

All money- beads, metals, scrip... is a substitute for reality. It is a convenience and a contrivance and a replacement for trust.

Agree. It could be anything.

[lkwalker]

Well- at least to arthritics! hahaha

[Egg]

People are beginning to realize that you can't eat gold. It has no intrinsic value. At the end of the day it is just more worthless shit.

Yeah, a few people. You give people too much credit.

[Egg]

Over 30 years ago, a man by the name of Nelson Bunker Hunt hatched the perfect plan: protect his inherited wealth (which then was one of the largest legacy fortunes in the world) from the inflationary destruction of “paper” assets by converting his assets into silver, and in the process cover the silver market, and send the price of silver to an inflation adjusted price of over $140 (nearly three times higher than the nearly record nominal silver price hit last week). Understandably, Hunt’s name has appeared very often in the popular media in recent months, since after all it was the “Hunt” price that the May 1 silver smackdown (which will most certainly never be investigated) that sent silver from $48 to $42 in seconds that was being protected by the paper cartel. Yet just who is Nelson Bunker Hunt? And how did he cover the silver market when did? What exactly did he do, and is someone doing a comparable silver cornering right now? And, most importantly, why? The answers, all of which are provided in this September 1980 Playboy article reprint, will surprise and astound many, primarily due to the myriad parallels between the world of the 1970s and our own. What follows is one man’s attempt to escape from the “system.”
From “Silverfinger”
IN THE SUMMER of 1979, an invisible hand reached out from an island in the Atlantic and quietly began tightening its grip on the world’s supply of silver. The fingers of that hand extended to London, New York, Dallas, Zurich and Jidda. But the only visible clue to its existence was a newly formed Bermuda shell corporation called International Metals Investment Company Ltd. That dull sounding little trading company was not just another offshore tax scam but the operating front for a secret partnership seemingly capable of controlling the world price and supply of silver.

http://www.zerohedge.com/article/silver ... unker-hunt