sdavid0419

Silver Goes Institutional

Everyone won't be getting in on this one as the little guy is going to take it on the chin. For GOLD that is. Unlike stocks gold won't split when it gets too expensive for the little guy. I highly doubt if gold soars you'll be hearing any cab drivers telling you they're buying it. As to SILVER it is still cheap enough and there will be plenty of flea market trinkets to find so the little guy will have a chance with this one.

Gold: Despite New Highs, Most Investors Remain Uninformed and on the Sidelines

If GOLD were a stock and those on the sidelines jumped in I would pronounce alas its been a good run but now is the time to get out. Should those on the sidelines decide to jump in I am in no hurry to get out. We are NOT dealing with a stock, we are dealing with INFLATION caused by the out of control printing of money. As long as the printing continues the REAL money (gold) as well as other assets will keep its value.

As an example I offer up the tractor I purchased 26 years ago for $7000. I've kept it in good working order making several expensive repairs but it works better than good and is currently worth about what I paid for it even 26 years later. I haven't priced a new one in a while but I believe the same tractor was around $23,000 the last time I priced it.

I have been making repairs and upgrades to my real estate and have purchased some new expensive play toys. However, I still choose to keep most of my nest egg in GOLD rather than accept any of the sub standard rates being paid by the same banks that are charging 30% on credit cards. To me its just plain common sense not to stay on the sidelines at this turning point in US history.

Recycling U.S. Coins into Silver

Wow...lots of comments on this one. Let me add my 2c worth. I've been buying the 90% silver coins for a while now and have found that they do not screen them for dates and that I have each time gotten full value in dates for what I paid for silver. Also, I'm not buying into the oil dollar as I am in the process of going green and have found solar and wind to be worth the investment. When the rest of the world catches on to this gasoline might well be under $1 a gallon again!!!!!

Silver Unmasked

I think you hit the nail on the head. While gold is considered real money, silver actually is very useful even if photography went digital. With gold the imaginary thing (arbitrage) can work as there is a lot of real gold out there to cover shorts. With silver, it might take a decade but imaginary silver will not be available to cover shorts!

Why a Gold Bug Isn't Buying Gold Now

Big fast build ups usually do get followed by some profit taking. Nothing goes straight up. As to the market correcting in the short term that is another thing. I vividly remember tech stocks continuously climbing for several years with no logical reason before the bubble burst. The same for housing prices. Unemployment numbers (U2) absolutely do NOT support any further growth in the markets yet my anticipation is these guys will continue piling on until that bubble bursts also!!!!! As to the metals I'm a BUG too and I'm not currently buying or selling as I believe the coming inflation will determine where the top is and since we can't even get the government to acknowledge the inflation we will have to continue monitoring this ourselves.

Silver Futures Show Markets Are Acting Strangely

This Kohalakid guy makes the Hunt brothers look like saints. He keeps falling back to the rules which we all know these wall street geniuses have bought and paid for from our duly elected representatives. Even using his rules the unmentioned banks have more than his rule even allows for. I know I've emailed all of my friends advising them to buy real silver even if only one ounce at $17.48. Like the guy wondering above what happens when the settlement date comes and those guys are short? My worst fear is that this Obama schmo will bail them out with taxpayer money!!!!

Niall Ferguson: Dollar Is Doomed, U.S. Empire Is Finished

Once again I'm reading the words "doom and gloom" and once again I'm stating I'm not a doom and gloom'er. I'm just defending my position against the obvious inflation that I believe is already under way. The mezmerizing machine in DC thinks because they altered the way inflation is calculated so they could rip off old folks on fixed incomes means that it doesn't exist. I even heard one of their operatives on the FOX business block suggest the old folks should not get a flat $250 but should give back because of "deflation". This talking head moron forgot to tell you that even though social security didn't increase the medical insurance benefits did. In fact so did college tuition. So have groceries. Yes gas is $1.00/gal cheaper than a year ago but has been steadily rising over the past 7 months. Someone slipped up and released the August wholesale prices and they were up an annualized rate of 20.4% so I've been waiting for the September wholesale prices which for some reason haven't been reported yet. I wonder why. We are getting so many lies out of washington and absolutely absurd behavior from our elected officials I for one believe in the golden rule. He who owns the gold makes the rules and if these overpaid wall street greedy pigs try to take over MY country I want to hold the gold.

Silver Futures Show Markets Are Acting Strangely

I say beat the b@stards at their own game. Buy and hoard as much real silver as you possibly can get your hands on and force these danged manipulators to come up with the goods at settlement time!!!!!!

Does the Good News Point to a Market Top?

I agree with you on gold and silver with one caveat that being a large inflation figure. Our government as well as most of the rest of the world is printing money so fast it is very hard to factor in the sure to come inflation figure. I'm expecting it to be higher than any other inflation than I have seen in my lifetime and I bought my house with a 15% mortgage!!!!!!

The price rise in oil is not immediately showing up at the pump as it has in the past. I still paid $2.35 this week. When it hits $3.50 inflation is upon us. In my area of the world the oversized vehicle is still abundantly prevalent on the roads though the newer ones are more fuel efficient they are still much less efficient than a compact car.

I do expect a correction but the sell reinvest window might be the smallest one yet.

Silver: Commercial Short Positions Continue to Rise

I'm playing silver a little differently from gold. I've been a coin collector for as long as I can remember. Since dealers are opting to sell silver bullion as bags of unsorted silver coins I have slowly been purchasing them. After I made my initial purchase of washington quarters I learned that there possibly were, and my bag had some, dates that were worth far more as a coin than for its silver content. This was a win win situation. It was like getting a bag of quarters out of a vending machine back in 1967. One caveat - count your purchase manually. They sell them by weight but count them with an auto counter that has come up short 3 times out of 5.

Why There's More Upside for Equities and Commodities

Housing prices were artificially high due to cheap money and the get rich quick house flipping schemes. Heck they rose so fast developers had to put up gas pump like signs where they could raise the starting from price almost daily. State and local governments had to put caps on the rise in property tax rates to protect people that bought their houses at the fair price. The housing collapse finally got that market to correct to the true reasonable prices (in my opinion they still could come down a little more). Any good housing news is just a good sign that market is returning to normal and by that I don't mean the go up every day and flip normal but the pre insanity normal.

As to unemployment I always prefer the U2 as a truer indicator as it includes those that are still un(der) employed but have fallen off the rolls as their unemployed benefits have expired. Every state has crumbling infra structure that needs immediate attention from dams and bridges to water mains, highways, and office buildings. Yet the Obama stimulus plan a year later has only dispensed half its funds. It took 2 seconds to dispense a trillion dollars to bail out wall street an act I despised as unwanted and unnecessary. Whats taking so long to put people back to work? The unemployed people contribute nothing to reelection campaigns and wall street uses the trillion dollar taxpayer gift to buy as much government as they can!!!!!

COMEX Silver Positions Since May 2008

As stated in previous comments I am getting out of the make believe metals in favor of hoarding the real stuff. If enough real metals are taken out of circulation and the real users begin finding it harder and harder to obtain the laws of supply and demand will finally take hold and precious metals prices will reflect availability and not the game players price. Also, the game players will get caught in the shorts when they can't get enough real metal to cover their make believe bets. I for one will stand and applaud if I live long enough to see that day come. Save a few cells near Bernie just in case!!!!!

Stock Market Overbought: What This Means for Silver and Gold

I was all ready to jump all over rick12345 when manaboutdallas did it so aptly in front of me. All I can add about fear mongering is the real numbers that I am seeing. 1.8 trillion deficit and growing. 56% of gnp going to sevice the debt. Growing (not shrinking) unemployement. A president hell bent on yet another BIG government program like the IOU's in the Soc Sec lock box or the out of control costs of Medicare aren't bad enough. I'm not mongering the fear I'm just reading the numbers and trembling!!!!!!

Monday's Million Ounce Silver Withdrawal

Could this be an indication that those who are trying to manipulate the precious metal prices are finally losing the battle to common sense?

As long as we keep electing politicians that desire to spend more than there is and keep putting off the pain for fututure generations. ie. 1.8 trillion in new debt ad infinitum, 56% of gnp goes to debt service. COMMON SENSE tells us that we can't run our own house hold budgets like this AND our elected officials should not be tolerated doing it either. To better understand our elected officials mentality I suggest reading Jeff Sharlet's book "The Family: The Secret"

I'm reminded of the act on the old Ed Sullivan Show where the guy spins plates on long pool cue like sticks. Eventually all of the plates will fall off and break!!!!!!

Still long GLD and SLV and converting the paper versions to real metals.

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.