Dow Closes Down Nearly 400 Points — Gold and Silver Tumble, Too
- Posted on September 22, 2011 at 2:30pm by
Jonathon M. Seidl
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NEW YORK (AP) — Stocks have closed sharply lower after investors sold stocks with abandon, convinced that the U.S. and the world are headed for a new recession.
The Dow Jones industrial average fell as much as 527 points, the second consecutive rout since the Federal Reserve announced a change in strategy for fighting the economic slowdown.
At the close of trading, the Dow was down 391.01 points, or 3.5 percent, at 10,733.83. The Standard & Poor’s 500 index fell 37.18, or 3.2 percent, to 1,129.58. The Nasdaq composite fell 82.52, or 3.3 percent, to 2,455.67.
Nineteen stocks fell for every one that rose. Trading volume was high on the New York Stock Exchange, at 6.9 billion.
Oil and metals prices, which rely on economic demand, sank. Traders sought the safety of Treasury bonds.
Gold fell $66.40, or 3.7 percent, to finish at $1,741.70 an ounce on Thursday. Silver, a precious metal that has wider demand for industrial production, plummeted $3.89, or 9.6 percent, to $36.58.
Analysts said that much of the selling was driven by margin calls for hedge funds and other big investors. “We’re seeing hedge funds that have to raise cash, and to do that they have to sell what has been working for them so far this year,” said Ryan Detrick, senior technical strategist at Schaffer’s Investment Research.
Analysts also said that silver had a harder fall because about half of its demand comes from industrial uses. “If the economy contracts at all, there‘s going to be a lot of excess silver that’s sitting in the supply chain,” said Phil Streible, senior market strategist at MF Global.
Gold is up about 22 percent for the year. Silver is 16 percent higher than at the start of the year.
Copper, a metal that closely tracks the economic cycle, fell 27.6 cents, or 7.3 percent, to $3.4885. It is down 23 percent for the year.
Oil, wheat and other raw materials fell significantly because of increased fears that a recession would cut demand. Benchmark crude fell $5.41, or 6.3 percent, to $80.51. It was the biggest drop for oil since Aug. 8, when it fell 6.4 percent after Standard and Poor’s downgraded the credit rating of the U.S. Oil has dropped 29 percent since April as global growth has slowed.
Wheat contracts fell 33 cents, or 5 percent, to $6.3375 a bushel. Corn lost 35.75 cents, or 5.2 percent, to end at $6.50. Sugar dropped 1.1 cents, or 4.3 percent, to 24.81 cents. And soybeans fell 37.5 cents, or 2.8 percent, to finish at $12.83.
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godhead
Posted on September 23, 2011 at 10:33amOur sponsor this half hour – Goldline.
Report Post »georgiavietvet
Posted on September 23, 2011 at 9:18amobama is succeeding with his goal of driving this country into the ground and making everyone, with the exception of his corrupt buddies, dependent on the gov’t for life, health, aqnd food.
Report Post »beckisnuts.
Posted on September 23, 2011 at 8:58amNotice how Glenneth was dumbfounded yesterday over the drop in price for gold? In any event, we could be in for a very rough ride.
http://www.guardian.co.uk/business/2011/sep/22/global-economy-autum-2008-again?CMP=twt_gu
Report Post »KidCharlemagne
Posted on September 23, 2011 at 1:31amFear of debt default in Europe means an exodus from the Euro and into the US Dollar instead…and when folks start flocking into US Treasuries, then commodities drop in price as the demand for the Dollar rises.
Report Post »LinkedIn G
Posted on September 22, 2011 at 11:06pmDid Obama make another speech today ?
Report Post »Gypsy123
Posted on September 22, 2011 at 9:02pmI have always found that food and water were easier to chew on that gold and silver
Report Post »smokeysmoke
Posted on September 22, 2011 at 10:14pmi have alwasy found that i can exchange gold or silver, and it will be worth its weight no matter whats going on.. what i mean is gold, silver, food, hard assets more or less based on supply and demand but maintain their value, its the PAPER ASSETS that change value and can become worth nothing worth nothing if MISMANAGED… dont think that USEFUL MATERIALS AND GOLD AND GUNS AND AMMO AND FOOD could increase in value while the dollar collapses
Report Post »DTOM_Jericho (Creator vindicator)
Posted on September 23, 2011 at 12:22amSounds like typical regret comments. When there is a recovery and your dollars are worth zero and food feeds you but buys you nothing and spoils… where will preserved wealth be?
Enjoy the turnip stew.
Gold is the currency of royalty.
Report Post »Silver is the currency of gentlemen.
Debt is the currency of slaves.
NickyLouse
Posted on September 23, 2011 at 6:45amWisdom from Isaiah 33:
The LORD is exalted, for he dwells on high;
Report Post »he will fill Zion with justice and righteousness.
He will be the sure foundation for your times,
a rich store of salvation and wisdom and knowledge;
the fear of the LORD is the key to this treasure.
NickyLouse
Posted on September 23, 2011 at 6:48am“Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moth and rust do not destroy, and where thieves do not break in and steal. For where your treasure is, there your heart will be also.” – Yeshua
Report Post »flatbroke
Posted on September 22, 2011 at 8:49pmOH! Darn all those gold and silver 20 pound bricks i brought, gees bees “what am i gonna do with em now”
Report Post »swampbuck
Posted on September 22, 2011 at 8:20pmmakes no sense at all..
Report Post »Bro Geo Too
Posted on September 22, 2011 at 7:51pmPlease purchase and read: How To Survive The End Of The World As We Know It, by James Wesley, Rawles. Also check out the preparedness site known as, http://www.preparedchristian.net – both are packed with practical information on what to do when the Schumer hits the fan.
I don’t smoke anymore, but I’ve stashed away cartons of cigs to use as barter material. Chocolate, coffee, junk food work too. If you are laying up ammo, 40 cal is plentiful and very reasonable: and did I mention effective?
Report Post »bruce_baker
Posted on September 22, 2011 at 7:32pmBusiness is ready and waiting. Waiting for the Obstructionist in Chief to get out of the way. I hope the country LASTS until the election. Newt, we need some leadership in Congress to get some regulatory reform and tax relief. Come up with something good and just keep sending it to the President until he caves in.
“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it’ – Ronald Reagan
“A wise and frugal government, which shall leave men free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned – this is the sum of good government.” – Thomas Jefferson
The question for 2012 becomes, “Do you want your children to live in a communist country, or not?”
Report Post »Little Johnny
Posted on September 22, 2011 at 8:28pmHello Bruce,
Business is “ready and waiting” to hire people once there is DEMAND. No reason to do so until then, and we’re only partway through the un-winding of a huge asset bubble.
Taxes were much higher 10-15 years ago, and businesses were hiring like mad.
The idea that we need even more tax breaks for the wealthy and to corporate America in order to “stimulate job growth” is completely laughable. It’s not an easy situation to get out of, there’s no doubt about that.
Report Post »One Man Progressive Wrecking Crew
Posted on September 22, 2011 at 7:29pmNOW we really know what he meant by hope and change…Hope we Have some change left when he leaves office I guess…..
Report Post »Libby Tarian
Posted on September 22, 2011 at 7:24pmI bought silver last year. I paid $22.00 an ounce. I am still way ahead of any stocks or bonds. Mine is worth 37.00 an ounce today.
Report Post »Doing Good! I also stocked up on coffee and cocao last year. Wish I could buy gasoline in bulk.
bruce_baker
Posted on September 22, 2011 at 7:34pmBuying gasoline in bulk is not a good idea, because it has a shelf life! There are stabilizers you can buy, but one year is about it for storage. Too bad.
Report Post »AnotherCoverStory
Posted on September 22, 2011 at 6:41pmThis how investors react to learning of a coup. Typical knee jerk reaction.
Report Post »http://PalinsDirtyLittleSecret.blogspot.com/
ChiefGeorge
Posted on September 22, 2011 at 7:14pmYou should be out of the markets by now, if not you may not get the chance to save whatever you have left.
Get out and stay out. Place 401ks in money market accounts and on pause.
Save cash, silver and gold. Forget easy get ahead schemes of the past through markets, bonds, savings accounts, stocks and the like. All are paper and no good for what it coming.
Buy goods to sell and barter with. Things that people can always use. Underwear, Tshirts, socks, diapers, peroxide, bandages, qtips, gauze, 2×4s, plywood, nails, batteries….I could go on and on but you get the point.
Markets are finished. Dollar going down hard and soon.
Report Post »MidWestMom
Posted on September 22, 2011 at 8:41pm@ chiefgeorge
Exactly! Been telling people for years that “goods” will be worth more than anything else….except guns & ammo.
Report Post »TomFerrari
Posted on September 22, 2011 at 6:32pmI’m buying gold !
It’s on sale!!!
Investors were selling gold to get cash to cover margin calls, to buy more stock on sale, etc.
Report Post ».
.
.
duhwut
Posted on September 22, 2011 at 6:40pmscrew gold. Its all about guns and ammo baby!
Report Post »RealCowboy
Posted on September 22, 2011 at 6:31pmThe beginning of the great tribulation,a lot more to come.
Report Post »NOTALOTTAYITTAYADDA
Posted on September 22, 2011 at 5:39pmEvery year about this time, the auto industry has finished purchasing it’s raw materials for the next years production. So demand for platinum/rodium, catalytic converters, drops. rodium remains higher than gold, but gold recently passed platinum. This takes a greater toll, as the supply of platinum is 1/6th gold. Mixed metals market IMO.
Report Post »Any_One_But_Obama
Posted on September 22, 2011 at 5:31pmThis confirms what the World Bank Chief just said: The World is in Trouble: http://www.americanparchment.com/video/2011/sep/world_bank_danger.html
Report Post »FoxholeAtheist
Posted on September 22, 2011 at 5:28pmYou had better go pray for to pick up. Oh wait, the last time that happened it made it worse.
Report Post »RealCowboy
Posted on September 22, 2011 at 6:28pmYou need to repent sir,the fool has said in his heart‘there is no God’
Report Post »duhwut
Posted on September 22, 2011 at 6:36pmme no understand your sentence.
Report Post »Bro Geo Too
Posted on September 22, 2011 at 7:54pmDear Foxhole – pray for a brain that can put two sentences together, OK?
Report Post »swampbuck
Posted on September 22, 2011 at 8:22pmthey’re no atheists in fox holes..lol
Report Post »godhead
Posted on September 23, 2011 at 10:35amSWAMPBUXK . . .And there are no Christians in whorehouses.
Report Post »ProbIemSoIver
Posted on September 22, 2011 at 5:27pmThese poor gamblers lost some money today, Aww. Cry me a freakin’ river !!!!!
Report Post »That’s what degenerate losers do !!!!
They deal with loan sharks = Banks, Credit Cards
They Gamble their life savings = Wall Street, Stock market
They pawn their homes = Refinancing
And then they cry like Babies, when things don’t go their way !!!!!
lol.
Cat
Posted on September 22, 2011 at 5:04pm“It’s working as planned … Keep doing what ever it is you’re doing … They’ll have to buckle to us!”
Telling you all, the only way to get this government’s attention is to STOP FUNDING IT!
They’re NOT listening!
Report Post »Any_One_But_Obama
Posted on September 22, 2011 at 5:33pmCat, you may like this youtube viral video, after your name… Kitty Cat Jedis: http://www.americanparchment.com/video/2011/sep/kitty_cat_jedi.html
Report Post »avenger
Posted on September 22, 2011 at 5:35pmSmart people will buy Gold/Siver/Guns/Ammo and food storage.You can open a gold savings account with $100 on a monthly progam from a solid company that owns the gold mine,the refinery and the distribution system.Based in Germany/Switzerland with free staorage upon request.http://det.goldfromkb.com
Report Post »westtitus
Posted on September 22, 2011 at 6:02pmAnd why is this a surprise to anyone? For two years all we talked about was Health Care Reform (which it is not) and not anything on jobs so what is the big surprise?
Report Post »Cat
Posted on September 23, 2011 at 8:11am@ANY_ONE_BUT_OBAMA
Thanks, but;
Cat, refers to a 50’ turbine powered catamaran race boat, not felines.
The wife thought the fuzzy Jedi’s were cute, she prefers being navigator at 150mph on water.
@AVENGER
Have floor safes full of silver (@$3.00/oz) and gold (@$250/oz), full hidden pantries, a safe with loaded shotguns and ammo hidden in every room.
Read history and the Bible, there are major hints throughout both.
@WESTITUS
Call the elected officials you voted for.
Either you’ll get an eighteen year old intern, or, if your cleaver, the actual person you elected.
Guaranteed, neither, can answer your question to your satisfaction.
***
Report Post »Our government is so corrupt now, we have to shut it down, otherwise we will loose our freedom forever.
The 2nd Amendment is not about feeding yourself.
dpselfe
Posted on September 22, 2011 at 5:01pmtime to buy silver……..
Report Post »babylonvi
Posted on September 22, 2011 at 5:24pmThat’s a big 10-4, but please wait till the afternoon so I can buy mine early.
Report Post »progressiveslayer
Posted on September 22, 2011 at 5:57pmI’m long on silver & gold it’s buying time.
Report Post »RealCowboy
Posted on September 22, 2011 at 6:36pmMaybe,but the Bible says a bag of gold will buy a piece of bread,I think investing in food and supplys would be wise.
Report Post »CatB
Posted on September 22, 2011 at 4:40pmObama and his administratioin are doing a heck of a job!
2012 the end of an ERROR
TEA!
Report Post »The_Almighty_Creestof
Posted on September 22, 2011 at 4:50pmWhat do you think CATB…will the Dems tell him to stand down so they can bring Hillary in? And what excuse will they use?
Report Post »Detroit paperboy
Posted on September 22, 2011 at 4:58pmI dont know if they can keep this house of cards standing until the
Report Post »next election…its gonna collapse exactly like the old Soviet Union did ,,,
And for the same reason….SOCIALISM HAS NEVER WORKED…
and im sorry , but we are living under socialism. PERIOD
Snowleopard {gallery of cat folks}
Posted on September 22, 2011 at 4:59pm@CatB — 2012 is the Liberation; 2013 is the RESTORATION.
Report Post »AvengerK
Posted on September 22, 2011 at 5:27pmDon’t forget..Bernanke spoke. Whenever he speaks, the market tanks. He told us what every sane American has known for months now…the economy isnt’ recovering fast enough it could well be heading into a double-dip recession. Of course Europe‘s failed socialist experiment being kept on life support by it’s aristocracy is a factor as is the slow down in the Chinese economy. But look to where everyone runs once again…U.S. treasuries. For all our problems, we’re still seen as a safer bet. Had Obama had a more business/employer-centric agenda, some of this pain could have been avoided. Rather…he wanted to create markets where there were none (green jobs) based on ideology, feed and protect the unions and pay off his supporters (Solyndra, Lightsquared etc.)..all at the tax payer‘s and the unemployed’s expense. Will there there be a coup and Obama face a primary challenge? Right now, I wouldnt‘ say so but if he’s exposed more as the do-nothing, know-nothing, jaw-wagging, empty suit he is…that could change. Congressional hearings on Soyndra and “Fast and Furious” won’t help him. Clearly the slack support he’s seen from his own party for his “stimulus Jr” “Jobs bill” is an indicator he’s lost his own party. Harry Reid has the bill in limbo in the Senate. The democrats are facing a ruination of their brand for several election cycles. Even American jews are leaving the democrats. Democrats will choose their jobs over Obama’s election bid.
Report Post »