Why the gold, silver & oil price plunge?

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CarlWohlforth
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« on: May 11, 2011, 11:56:01 PM »

Many reasons are quoted. One that makes sense is tightened margin requirements. You have to actually be able to buy a larger percentage of the item you own a future on. Most speculators could not afford to get PUT the item if the contracts were exercised in their face. So we are seeing short squeezes.

Once the speculators get washed out prices will continue up. There should be less volatility.
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CarlWohlforth
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« Reply #1 on: May 13, 2011, 06:37:35 PM »

That's my story and I'm sticking to it!  Kiss
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Laserart
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« Reply #2 on: May 19, 2011, 11:31:43 AM »

What is your time line? Any guesses?
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CarlWohlforth
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« Reply #3 on: May 20, 2011, 10:02:32 AM »

All the over-extended speculators who had to sell to meet new margin requirements have done so. That means less volatility and perhaps a floor to the price. Certainly there should be less volatility.
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