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Ed Zimmer
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Ed is a graduate of The School of the Ozarks (now known as College of the Ozarks) in Southwest Missouri. He spent 14 years in broadcast news in the Midwest covering, among other things, commodities. He is currently manager of a healthcare support facility doing over two million dollars a year in... More
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  • Picking your time to buy
      Wednesdays crash in prices in the PM sector illustrates why investing in anything entails some risk.   The Key is minimize the risk while maximizing the profit.   But one also must look at long term vs short term.    A long term strategy can accept some ups and downs, as long as the long term outlook is up.   Short term is more reliant on the day to day changes.
      When it comes to actually purchasing physical metals, one must remember that there is usually a premium that goes with the purchase, and to sell with a profit, one must recover not only the cost, but the premium as well, just to break even.
      Recent shifts in the metals market have not been that large, and are not enough to cover the premium in silver.   So at the moment, purchase of physical silver must remain a long term investment.    Gold on the other hand has come close to covering it's premium, depending on your source.
       Serious drops like Wednesday are perfect times to lock in some physical silver.  Not a lot, but enough to increase your holdings slightly.   SHould the fall continue, then purchases should be increased as your ability to buy exists.    I do not recommend that anyone go "all-in" in the metals, but buying while the price is falling provides opportunities for the long term investor to see his investment grow in value.


      Why buy on this dip?    It was a serious retracement, providing an excellent time to purchase from dealers.   Secondly, it comes as the COMEX is reporting registered stocks of silver falling to 47.4Moz as of 1/19/10.   That is a massive 7 Million ounce drop in just 11 days!     Total Silver stocks reported by the COMEX actually increased to 113 Moz, however 65.7Moz of that is silver owned by someone else that is "eligible" to cover contracts, after it is first purchased by the short seller!

    This is will be the main thrust of my published post, I just wanted to get some of this information out to those who follow me before hand
    Jan 20 6:03 PM | Link | Comment!
  • Time for Public Comment to the CFTC
    The following is my comment to the CFTC regarding their proposed rule making for limits in the energy market.     They are also considering possible limits in the metals futures as well.    You can read the hearing transcripts at and submit your own comments at      It would appear that the CFTC is finally trying to develop some teeth in the area of enforcement.

    Good Day,
       While I believe the CFTC has erred in not including Metals within the proposed rule, I support the CFTC taking the first steps towards placing position limits on markets under their jurisdiction.   I understand that the Commission feels the need to allow for bone fide exemptions, however I believe that these exemptions should be just that, not a rubber stamp.    Exemptions should be issued only where the entity can demonstrate a need for limits beyond what other traders are limited to.    That should be a physical need, not a financial speculation desire.
    In the metals complex, two US banks are short 30% of all Commercial Short Positions, reflecting a sell position of 189Moz of silver.   Not only is that shorting almost a third of the yearly world silver production, it is 4 times the amount of registered silver available in COMEX depositories.    Altogether, the CME COMEX silver market has 625Moz of silver under contract,  nearly 94% of the entire worlds mined supply of silver (670Moz as of 2008).    Since a bank or banks are not consumers of silver and have no business interest in silver other than speculative positions, a single entity or two controlling more than 30% of a side would seem to be manipulative, especially if it is a short position which is only effective if prices are suppressed on a commodity.    The fact that these positions have only grown as the price has increased also points to an attempt at suppression and an inability to cover the position if delivery is demanded.
    Given that the COMEX depositories only have 54Moz of silver registered to cover delivery requests, yet are contracting 625 Moz, it would seem that in order to cover their contracts, the short positions would be forced to move to the open market to buy which would significantly drive up the price to cover their positions.     Settlement of the positions in cash is the only option which again points to the excessive speculative nature of the positions, rather than the need to hedge for future production/utilization needs.       If just eleven percent of the long positions demanded settlement in metal, the COMEX depositories would be wiped out.   This means that 89% of the market is trading in a product that cannot be readily provided and is never intended to be settled in product.     That is a speculative market.
    Existing limits are a joke and even some of the proposed limits are little more than first steps towards reining in unnecessary speculation in a physical market which distorts actual value based on supply demand.      When the supply side can claim unlimited supply and not have to produce the same, then the market is no longer on the futures, but on speculation as to which direction the price will travel and is trading a cash basis for a physical commodity.    We might as well be setting futures on widgets without ever needing to produce one for settlement.
    There should be limits.    Traders should have to be able to cover what they are shorting.    Ten traders shorting the same single ounce of silver is speculation and it is manipulative.    When settlement comes, there are nine of the ten that are going to be out of luck.
    Ed Zimmer
    Jan 15 12:06 PM | Link | Comment!
  • Changing the Mindset, Change the game
      A lot of people want to know how to get rich, preferrably quickly and with little cash up front.    That has pretty much been the dream of every man, woman and child, especially in a prosperous society.    The adage "it takes money, to make money", pretty much leaves the majority on the outside looking in.    As anyone who has tried to play the futures, the buy-in cost is higher than the poker table, and you might have a better shot at the poker pot.
      So how to position yourself to thrive in the coming years?    Believe it or not, the first thing you have to change is your mind.    Not just expectations for the future, but how you view everything about the future.
       What is a "comfortable retirement?"    As many retirees will tell you, they didn't expect to be in "this position" when they retired.    The devestation of savings, retirement accounts and 401K's has changed options for millions and while some have made money on the rebound, many more have salvaged what they can and are still shell shocked.
      Changing the mindset means changing how you plan to end the game of life.   Those that are relying on a steady income from savings and investments now could very easily find those savings evaporating due to devaluation or inflation.   What provides the best retirement?     That is something that everyone should be considering and re-evaluation on a yearly basis.    What I provide is a few ideas to get you started.
       Owning your own property.    This does not mean having a mansion or a piece of prime real estate, but rather the kind of property that you are willing to retire to.   It should require little in the way of upkeep, have property taxes that you can easily afford on a very small income and be the right size for you and yours.    You should own it outright, that way you are not beholden to anyone for more than the taxes.
       Access to Medical Care.   No matter how healthy you are now, you will age.   If you like the country life, you still should be concerned with the type and availablity of medical care where you plan to retire.    Another reason that your property should be easy to keep up so you can spend more time doing what you want and not mowing the lawn
      Expenses vs Income.   Most people center on this as the most important thing, but this is only true if you have a lot of things you need to purchase.    Being able to make your own, grow your own, trade for items and reducing your needs can help turn an expensive proposition into a manageable endeavor.   Insurance can help reduce catastrophic costs, both medical and property.    As we live longer, we need to plan for things that we have no experience with.    To that end, lowering our needs will help lower our costs.
      Learn.    Exercise the mind will help keep you young and in the game.   Not only do the ol' dogs need to learn new tricks, you need to learn how to apply them.   The last thing you want to do is vegetate into the dolrums and get depressed.
      Manage our expectations.   When you are young, anything is possible and the world is your oyster.   When you are middle aged, you worry about everything, even those things that are beyound your control.   By the time you reach retirement, you need to have figured out what is important and how you want to live the rest of your life.    Having expectations that exceed your capabilities at this point, or even in middle age, can result in risks that should not be taken.   The most successful people are those that know their own limitations and don't risk more than they can afford.
      Exercise.   Even if it is only stretches and sit ups, working to keep your body as healthy as possible pays major dividends, better than any investment.   Get out, walk, bike, run, play with the kids, work in the garden, bend, twist, and generally get the body moving.    You don't have to go nuts, just learn to appreciate the outdoors and your body will thank you.
       Changing the mindset is never easy.   Everyone has a different risk appetite, so investing is different for each person.   Planning for the future now, can reap dividends when the time comes.    Don't put all your eggs in one basket, but make sure that the basket is everybit as colorful as the Easter Bunny's.    A little green, some gold and silver and a little earth color can help you enjoy the later years.
    Jan 12 2:52 PM | Link | Comment!
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  • Despite 25% Margin Increases, Silver still a buy. Paper is under $37 but completed auctions say $45-50 per ounce. Do the math
    May 5, 2011
  • Cross Contagion. Areas that are unexpected or little researched. Outcomes that are downplayed when they should have been emphasised
    Mar 17, 2011
  • Silver breached the $30 mark again today, expect margins to be raised in another lame attempt to stop the rise. Darn those specualtors! :)
    Feb 8, 2011
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