silver-bullet

Why Now Is the Time to Own Things

Water and solar panel


On Jan 06 08:30 AM Mike from austalia wrote:

> Beer or liquid gold, and solar panels........Have to go feed the
> Kangaroo's.......oh yeah, and i watched a bit of your famous Ron
> Paul.libertymaven.com/2009/.../

Commodities Are Not Stocks

The futures price is more than an insurance. It is a guarantee that another party is [committed] to take delivery at an agreed upon price at some point in time in future.

Unless the world stops eating corn, rice; stop using oil, cease to build buildings, then the futures contract becomes worthless.

The main point to take away is, commodities are [tradable]; and this feature by itself puts it on the same playing field as REITs, stocks, bonds, currencies, TIPS and all other asset classes.

Why else does a commodities exchanges around the world exists for?

Seven Reasons Inflation Won't Vanish

What the fed is trying to do is pretty obvious:

PREVENT A RECESSION FROM HAPPENING BEFORE THE COMING ELECTION.

After the election... that's another story. I think inflation will accelerate and the government will officially acknowledge the recession. By intervening in recent bailouts, the fed has seriously compromised the free market economy.

Seven Reasons Inflation Won't Vanish

Prices of Gold and Silver are artificially suppressed.... Which means every time I buy silver and gold, I close my eyes, smile and thank whoever is suppressing precious metals prices.

Thank you anonymous suppressor!

Get Out of Commodities - Barron's

We are not going back to $25 oil, $100 oil is now the norm (if we are lucky). Since it takes energy to farm, mine and transport stuff, I think the days of cheap commodities are probably also over.

Unless all the central banks stop printing gobs of money, or new discoveries of larger oil fields, or a major calamity taking out 25% of the world's population, the equation is not going to change much.

High Agricultural Commodity Prices Likely to Persist

Maybe we will start growing our food upwards (ie vertically) and in controlled conditions.

Is there an ETF or stock for hydroponics?

Commodity Analysts Believe the Party's Over

Obviously this article is a technical analysis on commodities. Good for speculators with short-term focus.

However, long term investors will be ill advised by this article, as it did not consider:

1) Global Population growth.
2) Dwindling global oil reserves (which will affect price of everything)
3) Parabolic increase of M3 money supply in virtually all currencies which is the cause of inflation.

At us$17.5 / oz, silver is one of the few affordable hedge to capital preservation. The recent drop in silver price serve as one of the few remaining opportunities that we may purchase it below $20.

Bespoke's Commodity Snapshot: Key Support Lines Challenged

Make no mistake, the long term fundamentals for gold is excellent. Gold's recent correction is due primarily to:

1) Brokers booking profits for the quarter, and the only asset which has appreciated in any significance is gold and other commodity positions.

2) Banks having to sell their only asset of value the have - not bonds or stocks as no one wants them - but bullion which they are holding, as a means of cash infusion in light of recent financial mess.

To other investors in metals (silver, copper, zinc etc.), gold is like a magnet, when it goes down it brings everything down. When it goes up again soon, most metals will go up with it.

An astute investor would be buying low and selling high. I think gold is still a bargain compared to the run up in the 80s when you factor in inflation.

Oil and Gold Grab the Headlines - But Silver's Another Major Mover

Gold dropped this pass week because of massive
1) Sell off by the banks to shore up cash in light of current financial mess.
2) Selling of commodities by brokers to book gains for the quarter.

Make no mistake, gold's drop is temporary. When it starts to rally, it will bring the entire asset class up again. As an astute investor, do not forget to buy low and sell high.