Should I buy Silver and Gold?

[peanuts]

does the market scare you?

I don't know how many more ways that I can say it, but get into gold and silver now before this Gold to Dow comparison chart really takes off:

[steelman]

I had bought some July $12.50 calls in GFI for a buck. It seemed like it had slowed a little recently. I took profit today at 2.00. It seems like it could still go up, but I am down in some other trades so profit taking was a must.

I like the good news here. I picked up some June $19 calls for SLW a little while back. I would love to see a little pop here so I can get out. Thanks for the articles and the info.

[riverbabe]

Speaking of gold...

I get emails from Goldman Small Cap Research that I find amusing, although I am definitely not endorsing the service. But this article caught my eye because it was quite surprising. I have copied part of it here, legally, because Mr. Goldman (not related to Goldman Saks) said, hey send it to all your friends. Anyway, the article begins with a rather humorous discussion of vending machines in general. Then says the following:

"Sweet Tooth, Meet Gold Tooth
...I bring all of these things up because there was some news last
week about a vending machine that I find fascinating. This
description was found in The Business Standard:
The world's first gold vending machine unveiled in a hotel in Abu
Dhabi in the UAE began attracting customers minutes after it was
opened. Apparently unveiled to cater to Asians' obsession with the
yellow metal, the 'Gold To Go' machine gives out one, five and 10
gram gold bars as well as gold coins, the National newspaper
reported.
The gold vending machine which was formally opened today is the
creation of German company and gives an instant display of gold
rates. It has been placed in Abu Dhabi's super luxury Emirates'
Palace Hotel. The hotel is calling it its "Golden service". Six gold
coins of varied weights and engraved with symbols of goldproducing
nations Canada, Australia and South Africa, are also
dispensed by the machine.
The machine is protected by a range of security measures,
including anti-money laundering software. It also tracks the gold
price on fluctuating markets, transmits the information every 10
seconds, and updates the price accordingly every 10 minutes.
Look, I know gold is up 13% YTD and it has been rising for years.
But is this really necessary? With the seemingly inevitable collapse
or at the least a continued revaluation of the euro, and the
sovereign debt crisis in the U.S. and abroad an issue, what does
this event tell us?
It is clearly a condemnation of the present valuation of global
currencies, particularly the dollar and euro. That would indicate
gold still has legs and markets could be in trouble as investors seek
out this inflation hedge or safe haven. (Of course silver is a much
less expensive hedge and is seeing other growth, but I digress.) A
related concern is the fact that the article cited specifically that the
machine is designed to quench the appetite of Asian hotel guests.
Does this mean Asia may stop buying our debt and seek out the nearest gold bar vending machine?..."

If you're the least bit interested in reading the whole article, go here:

http://goldmanresearch.com/images/reports/tggmay17_10.pdf

[dmk112]

Completely missed this last move in gold... arghhhhh

[peanuts]

It's nice to see some confirmation of what I've been preaching here. The crap going on at the Con-ex (yes, I spelled that the right way) will only cause a more explosive move to the upside when fully realized.

It is a win-win-win situation for silver:

1) the shorting gets realized, and price readjusts to proper price
2) economy improves and industrial buyers deplete inventory, leaving no room for shorts
3) economy gets worse, the dollar retracts further, precious metals react by going higher

I can't seem to find any reasons, other than manipulation, for the price to decrease in silver. I mean, barring a huge discovery of new silver, where is supply going to come from? The last big find of silver was in Nevada, in the late 1800's! That's when our money was silver. Now we have these clad tokens that are called money.

UPDATE: May 11, 2010

Gold and Silver are surging lately, with Gold at new highs and silver to follow.

The manipulation that I have been telling you about is finally coming to surface in more mainstream media. Here's a good article written by Seeking Alpha regarding JP Morgan traders manipulating commodity prices:

http://seekingalpha.com/article/204277-did-jp-morgan-manipulate-the-silver-market?source=yahoo

And the NY Post wrote this article:

http://www.nypost.com/p/news/business/feds_probing_jpmorgan_trades_in_gZzMvWBqOJpB55M7Rh9vwM

Take some time to read these articles and the posts in this thread regarding gold and silver price manipulation. The implications of this finally coming to surface and possible criminal charges against JP Morgan will have a VERY BIG effect on gold and especially silver prices. It could get very crazy.

[peanuts]

I think gold is ready to go again... peanuts what do you think?

Yes! I've been tracking the gold:silver ratio and the ratio is approaching a 150 day MA... silver has been outperforming gold, but I too think that gold will lead the PM group higher. It seems to run first, then the rest play catch-up but to higher degrees of appreciation.

Gold is at 1120, Silver at 17.88 currently. I think we see $1200 gold before $20 silver

[dmk112]

I think gold is ready to go again... peanuts what do you think?

[billyjoe]

Peanuts,
GRS is certainly cheap but I wouldn't touch it with a ten foot pole unless I thought the economic meltdown was going to resume shortly. In my opinion gold has been hyped to the extreme and still has some settling to do do. On the other hand, copper and silver are still flying under the radar. When I've stockpiled 1000 pounds of copper I'll move onto something else.

-----------billy

[peanuts]

buy low, sell high

Peanuts,
I sold the last of my GRS at 10.97...
-------------billy

Hi billlyjoe,

I have been noticing GRS popping up on my "cheap" radar screen. It looks to be trading near a potential great entry price during the last 2 days. $7.19 will buy you 1 share... Any thoughts?

[dmk112]

Wow... that didn't last long. I got pushed out first thing this morning. I still have the GLD call options, but they are way in the red.

same here... only green was TZA & JBII lol

[peanuts]

Broadside shot taken this morning on AGQ common and call options taken on GLD

I'm back in for now

Wow... that didn't last long. I got pushed out first thing this morning. I still have the GLD call options, but they are way in the red.

[peanuts]

...My finger is on the trigger, and in the scope I see a golden bear with silver paws. I'm just waiting for it to turn the corner for a nice broadside shot...

Broadside shot taken this morning on AGQ common and call options taken on GLD

I'm back in for now

[Peter Hansen]

Gold "greatest" trade ever?

According to Peter Krauth of "Money Morning" Gold is looking good. Here is link to the article!

http://moneymorning.com/2009/12/28/bull-market-gold/

What Gold to buy to get most "BANG" for your buck? ......Try these 3 "FAST" ponies .......GOOD LUCK!

http://finance.yahoo.com/echarts?s=JINFF.PK#chart3:symbol=jinff.pk;range=ytd;compare=rby+ivn;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

[peanuts]

GLD/SLV pulling back..anyone biting yet?

I've taken a good look at UUP, and it has rebounded to the August lows. That was about the same time that GLD and SLV started their run higher... but they are currently trading much higher than the August highs. Methinks that this indicates a very strong market for precious metals than it does for the dollar.

My finger is on the trigger, and in the scope I see a golden bear with silver paws. I'm just waiting for it to turn the corner for a nice broadside shot.

[dmk112]

GLD/SLV pulling back..anyone biting yet?