sdavid0419

Speaking of Gold...

Inflation began when oil prices soared post Katrina. Then in what I call the pre-election collapse of oil prices actually caused deflation. Now oil is once again on its trek up as the oil companies spend millions to keep Congress from acting on T Boone Pickens alternative energy plan. At the same time the banks are paying off their government loans as fast as possible so they can get back into the poker game since the government has failed to take action to put an end to the risky behavior. Oh did I mention the banks are spending millions to keep congress from doing that.

I had some significant gains in gold's run up. I'm the type that takes a short profit and runs at the first sign of a sell off which is how I was able to get some gains. Somehow, I have resisted selling off my current position through several cycles as I am so sure that Mr. Bernakes printing of money will cause hyper inflation and that the gold I'm holding is only an insurance policy. I don't expect it to be worth a gazillion dollars like most gold bugs but I do feel it will be worth more than the dollar once inflation sets in and that is a fact I'm relatively certain of. I vividly remember the Regan years when I was not market savy and I don't want to go there again.

Gold and Silver About to Hit Resistance

We got into this situation because our elected officials have acted so irresponsibly over the years. The oh so clever baby boomers tricked theirselves into believing they could have both guns and butter if they used hokey accounting and credit. Just like hokey accounting brought down Enron it will catch up with our government too. Laws like "Murphy's Law" and "the law of supply and demand" can only be avoided before so long and then the pendulum will find its way back. The light is coming on with our crediters. Dubai is building its own Ft Knox. China wants more gold also. Believe me your charts have never seen the kind of demand the lack of trust can develop.


On May 14 12:29 PM Kristjan Velbri wrote:

> David, the charts above show the price of silver and gold futures
> contracts as determined on the futures markets (like COMEX, which
> is part of NYMEX). The price of these metals is influenced by central
> banks, large commercial banks and technical analysis. The days when
> gold and silver were priced according to their actual worth and demand
> on the market are long gone. Some say these times are coming back
> but I wouldn't bet on it. Of course, it would be nice to have money
> with actual collateral.
> If you want to know more about resistance, then google the following:
> technical analysis resistance

Gold and Silver About to Hit Resistance

Go to the US Treasury webb site and try to buy new Gold or Silver coins and you will get the message that sales of these coins has been suspended due to an extreme shortage of blanks to mint them on. You can still get some older coins in PROOF condition at a huge premium. So whats all this resistance about?