Mark McHugh

Gold Poised to Move Higher

While I generally agree with the author's views (especially long-term), I must dispute a few points:

The Central Banks are more powerful than ever, our government is borrowing unprecedented amounts of money to rescue private, for-profit banks from the federal reserve. The federal reserve is nothing more than a collection of private, for-profit banks.

Gold is not the contrarian investment it was in 2001. The trade-du-jour is long stocks - long gold (as evidenced by the lack of short interest in stocks). My spider-sense tells me that many of these players are employing leverage, which means that the gold price and stock indexes fates are tied together for now. I fully expect to see a margin squeeze in the very near future, that will take down both gold and stocks.

In the long run, I think Adam will be proven correct. But, I am not inclined to add new gold positions right now. If you are really afraid that you are going to miss the gold explosion, consider buying a call option on the GLD. Just keep some dry powder around in case the price drops.

Gold: War of Attrition

Excellent article James.

The NYMEX is a joke, and anyone who suggests that anybody can buy a futures contract, get delivery, smelt it and re-sell it hasn't done the homework to see what is involved.

The easiest way to end the precious metals price manipulation is to force the US Mint to sell coins at market price directly to the public (not dealers) at market price. Not because gold bugs want them to, BECAUSE IT'S THE FREAKIN' LAW!

www.law.cornell.edu/us...

Go to treasurydirect.gov - they sell all the bubblicious treasury products there, directly to the public. The Mint is part of the treasury, so why can't I buy coins there? Because, Paulson, while crooked as the day is long, is no fool and is unwilling to sell me gold at an artificially low price. The "we can't get coin blanks made" cover story has to be the lamest lie I've ever heard (yet, people like Jason C actually buy it).

The constitution states clearly that only gold and silver are money. So, unless there's an amendment I don't know about, we've let the CEO of Goldman take the real money out of the hands of citizens.

Sell the gold and silver, Hank, no more excuses.

Expecting Epic Gains in Gold Miners

Worldwide deflation?

What world are you from?

The $64 Trillion Question: What's the Dollar Really Worth?

Marc,
Thanks for putting the strong dollar psychosis in perspective. And you did it without even pointing out that we are the world's biggest debtor nation, whose only salvation plan is printing more paper.

Precious Metals: Emotions Still Stronger Than Fundamentals

I am curious about these geniuses, who had gold, but sold it and bought the "strong dollar" and so forth. I don't go around posting on investments that I have no interest in, yet you seem compelled to do so. Why?

Does anyone here believe Shark has a Rolex?

The Disconnect Between Supply and Demand in Gold & Silver Markets

Tim T,

I think what Conrad and others have proven here is that manipulation of the precious metals prices is possible, and really not too difficult. What you are reading here is a playbook for how it might be done. No one has access to the CFTC records to prove ant of it.

Say you had 100 shares of SLV. You could sell them for $1326. 100 oz. sliver bars on ebay are selling for over $1600 (go look). Keep in mind, this is a purchase from a complete stranger, so paying a 20%+ premium to "market" value seems odd, don't you think.

So, if you could buy at spot price, you could flip them immediately on ebay for a 20% profit, which we would all be doing, instead of blogging., if we could buy physical silver close to spot, which we can't.

So here we are.

The Disconnect Between Supply and Demand in Gold & Silver Markets

Thanks Owen. Obviously, I didn't know that. It's kind of a relief, since the thought of dropping 60 grand scares the living hell out of me.

The Disconnect Between Supply and Demand in Gold & Silver Markets

Chris,

I think your missing the point of the discussion hear. The investing public cannot buy physical silver at spot right now, but people holding silver on margin are surely having it taken away at and being paid spot, if they can't meet the call.

This week, I have contacted four big futures brokers, none will facilitate physical delivery of precious metals. On Tuesday, I emailed the CFTC saying, "How can I buy a silver futures contract and get physical delivery." No reply (not even an auto-responder).

If the "price" of silver goes below $12 per ounce (which it hasn't, yet), I'm willing to cough up $60,000 for 340 lbs. of it (5000 troy). That's how sure I am that it's a bargain. If the Comex can't arrange physical delivery at (or very close to) it's own spot price, than that price is bogus.

Consider this my Jim Sinclair moment:

Any of you naysayers, just tell me how I can get physical delivery of a silver futures contract at spot. If you can't, shut up.

Thanks again for the article, James.

The Disconnect Between Supply and Demand in Gold & Silver Markets

Of course, this theory is a 'why' it was done, not a 'how'.

The Disconnect Between Supply and Demand in Gold & Silver Markets

Here's a slightly different theory (and let's all recognize that's all it is).

Let's assume that all the vaults have done their job and nothing shady is going on there. The problem is - Supply is very tight and higher prices don't seem to be shaking out enough physical sales. Much higher precious metals prices might trigger a run on the dollar. What to do?

The sudden drop in gold and silver surely freed up some supply. Why? Because leveraged traders couldn't meet margin calls and got wiped out. I spoked to a silver dealer Monday who was "about to go jump off the roof" because he spent last few days sending margin calls and closing accounts. Tragic indeed, but that bullion was now back on the market (and at a bargain price!). Hopefully, no one here is thinking about leveraging in metals.

American Eagles directly from the US mint are selling for $1119.95 for gold (37% above spot) and $25.95 for silver (95% above spot). C'mon folks, that a huge disconnect, and no, that doesn't include the pretty blue gift box or shipping and handling. I visit the mint site often enough to tell you it's never been anywhere near this big before.

The Disconnect Between Supply and Demand in Gold & Silver Markets

breethedeep,

"bizzare behavior of the markets right before 9-11"?

elaborate please.

The Disconnect Between Supply and Demand in Gold & Silver Markets

Who's the new kid? (244350)

If you're not publishing somewhere, you should be. Or do you prefer the cloak of anonymity for this discussion?

The Disconnect Between Supply and Demand in Gold & Silver Markets

Thank you for a great article James.

Will anyone who doubts James claims leave a number or website that will allow me to take physical delivery of a futures contract of silver. If need be, I'll go pick it up in the family truckster. I'm still waiting for the silver eagles I paid for.

Maybe someone could explain to me why the US Mint, who manages to get nickels, dimes and quarters to 80,000 bank branches, only supplies silver eagles to 13 dealers. Maybe they don't trust the banks either.

Ya know, if the US had only 13 gas stations, I bet the price of oil would drop a lot. Of course, most of us would then be riding bicycles.

Kudos to you James, for at least trying to explain this bizzaro world. I can only imagine the effort this took.

Gold Stocks vs. Bank Stocks

Good article Peter, right to the point.

I know the tape says different right now, but I don't think the macro story has changed. Time will tell eventually, but the waiting game is no fun.

How the U.S. Financial Crisis Resembles Japan’s 'Lost Decade' - And How to Play It, Part II

JOSEPH FOSTER - Caps lock off, spell check on, please.