silverwood

Time for the 'Commodities Contrarian Contango' with Precious Metals and Energy

Marc, all your proposed pricings are very plausible considering we have embarked on the Zimbabwe style monetary policies. In the mean- time all the market managers are working overtime to create the smokescreen.

Did the ECB Save Comex from Gold Default? (Part 2)

Thanks Avery for an informative and noble effort. You clearly point out that the futures market has become a rigged casino. This is just complimentary to all the other corruption and fraud that today is Wall Street. It has been suggested to end this game played by the naked short sellers in the gold/silver markets to stand for delivery and remove the metal from the various Comex storage facilities. What is your take on this and do you think it could work?

No Gold Bubble

Dan good post, but I agree with E Hart and I will repeat a post I made on another topic which is why I disagree with you on silver.

Yes, as the saying goes...There is no fever like gold fever!
I agree with the author we are no where near the mania stage, but gold is gaining more main street media attention now that the psycological number of $1000 is here.

But will gold be the big news getter and the winner of the go to asset in the near future? I think we will all be surprised who will be the winner of that horse race. It will be a stunning come from behind victory for SILVER!

Yes silver, hardly ever talked about in the media and written off as a Hunt brothers scheme. But these facts remain;
1. Silver has a long monetary history just like gold. But a very important industial component which cause silver to be consumed.
2. Silver can act as a long term protector of wealth and when gold price climbs it will be viewed by middle class as too expensive so silver will be the "poor man's gold"
3. Base metal miners who are cutting back activity account for silver's main supply, so supply will decrease as this environment persists.

So the cry of there is no fever like gold fever will be heard, what may be the louder cry is...

HI HO SILVER AWAY!

A Golden Investment in 2009 and Beyond

After reading this article, it appears that the author is writing it to himself. He is trying to decide if he should invest in gold. After all it is apparent that he really doesn't understand gold as he states;

"I had discounted gold as an investment because in essence it is a speculative commodity with little utilitarian purpose beyond that of jewelry."

But now he says;

"I am not as bearish on gold as I once was, but I still see it is a hedging strategy in case stock markets start to tumble, rather than a pure play, long term investment."

Stock market hedge? Gold is MONEY! pure and simple and it trades as such. What gold is reacting to is a global movement by Governments and their central bankers to print more fiat money therefore debasing their currencies. That is why you are seeing new all times highs of gold in terms of Euro, Briitish pounds, Canadian $ etc. Shortly a new higher high coming in US$.

Brent Cook: Turning Rocks into Money

TGR: Why such a low-ball bid?

I think Penoles was trying to capitalise on the financial crisis but
grade matters and no other site in the world matches the grade of MAG's find in the Juanicipio. The average grade on the Valdecanas is > 1 kg/tonne. That's worth >US$400/tonne at today's silver price.

Not only that, but even at today's depressed prices, the lead and zinc content alone is worth > US$60/tonne. We know from several analyst's releases that Penoles' cost of mining in the mine right next door are ~ US$40/tonne. Gee.

So the silver and gold, >$400/tonne of it, are basically net. I don't know what the market is paying for that kind of deposit, because there hasn't been a find like it in at least 100 years, but I'm absolutely sure it's paying a LOT more than Fresnillo's stink bid offer of $4.54.

Brent Cook: Turning Rocks into Money

I total agree with the Mr Cook on his selection of Mag Silver(MVG). I would like to add that he did not include any of the other projects in which Mag has in his share price consideration.
Mag has some very good drill results at their Cinco de Mayo project. Latest results here...www.magsilver.com/s/Ne...
Another one of their wholly owned project is Batopilas. They have discovered high grade silver deposits here also... www.magsilver.com/s/Ne....
To fully appreciate this company go here...www.magsilver.com/s/Pr...
disclaimer I am long and strong Mag Silver

Dennis Gartman on Gold, Oil, Government and the Economy

DG:" It’s more that I think gold has quietly moved up the ladder of reservable assets, a reservable asset being one that central banks are willing to keep on their balance sheets, all things being equal. Dollars are still the world’s dominant reservable asset. The Euro is next and gold is probably the third.

I think that’s all that will drive the gold prices quietly higher. I am not a gold bug; I don’t think the world’s coming to an end. I think the history of man is happen to be modestly bullish on the gold market, but not because of inflationary concerns."

So, according to DG a Gold Bug thinks the World is coming to an end? Now Wikipedia's definition which I believe to be correct...
"The term gold bug is a (sometimes pejorative) term used to describe investors who are very bullish on buying the commodity gold." According to that definition DG is a Gold Bug.

DG also believes the only driver of gold will be Central Banks. You mean to say private individuals seeking wealth protection from vast amounts of excess liquidity being supplied to bail out troubled entities and stimulate economies globally will have no influence on gold?

Basically, I would agree with many of DG arguements but the above statements makes me shake my head.

ETF vs. Mutual Fund: Two Ways to Invest in Gold Miners

Although I agree with the author that buying a gold mutual fund or gold ETF is a good idea, this should be done after you have in your possession the physical metal (gold and silver). The physical metal is insurance against a currency collapse, or severe devaluation.

I disagree with the author's view that gold is just a commodity and it's valuation is only derived from fear of inflation. Gold is a currency and trades as such. Gold is real, natural money.

AS for the choice of investment the authors has suggested FSAGX, the mutual fund would be better for those investors who are seeking long term buy and hold stratergy, while GDX, the ETF would be better suited to those more prone to trading. Personally I would suggest some exposure to the junior explorers as that sector has been completely trashed and careful due diligence on selected companies could prove the greatest rewards.