Should I buy Silver and Gold?

[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.

[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:

[stocks54]

Hi Peanuts,

Do you gold price coming down to 1180 level in next week or so?

Best Regards,
Stocks

[peanuts]

Hi Peanuts,

Do you gold price coming down to 1180 level in next week or so?

Best Regards,
Stocks

All precious metals are in an uptrend. I would puts the odds in favor of GOLD being closer to $1250 than $1180 in the next week or so

[peanuts]

In case you were not awake, the price of gold today is $1256 and silver is $20.31

You have to ask yourself, "Do I want to hold the Dollar, or do I want to hold Precious Metals?"

Get on board before the rest of the country catches on.

[Gary611]

Gold Plays?

Without actually buying gold, do you recommend any type of play to jump in?
This stooge is impressed with the comparison chart in your posts.

[steelman]

Without actually buying gold, do you recommend any type of play to jump in?
This stooge is impressed with the comparison chart in your posts.

Gary, I have done well with EGO and ANV and I am sure they still have some play in them.

[dmk112]

Without actually buying gold, do you recommend any type of play to jump in?
This stooge is impressed with the comparison chart in your posts.

Actually buying gold as in gold bars? If so, the ETFs are GLD & GDX.

[peanuts]

Without actually buying gold, do you recommend any type of play to jump in?
This stooge is impressed with the comparison chart in your posts.

OK, do you want paper derivatives of actual physical gold, or do you want companies whose stock is affected by the movements in the price of gold?

Paper derivatives: GLD, UGL, GDX

Stocks: ABX AZC BVN CDE FCX GFI GG GRS GSS HL HMY NEM NG NXG PAAS RGLD RIC SA SWC

As far as my "recommendation"... well, I do NOT think that you should stuff your safe with US Dollars.

[peanuts]

Gold has recently been making all time highs and is currently $1294.30... $1300+ is nearly on the books.

Silver is even stronger, but is not yet making all time highs. But someday it should... perhaps within a year. Current price is $21.09

The GOLD:SILVER ratio is 61.37:1. The historical ratio is 20:1 to 15:1

Upcoming QE2 was all but directly stated by the FED announcement yesterday. The only thing they know how to do is print more money. The value of the USD is eventually going to crash... especially once foreigners purchase less or, God forbid, sell our bonds.

If you haven't done so already, get some physical gold and silver. If you already have some, then get more.

[tagthatstock]

i read your story of your friend, i liked gold back in 2002-2003,, and now newbies are posting all those stocks from back then who are just now making a profit (the stocks that is) anyway,, i also keep being reminded of 'lord of the rings',, it was the desire for that gold ring (and power) that lead those charactors to go insane/mad or die. fortunitely, alot of older traders i see posting around the net see gold for what it is, a trading tool backed by ideas,truths and lies.

meantime,, no matter how many times they tell me the $usd is going to collapse, i put buckets out to catch 'falling usd's' as an american i dont have to buy them like other countries i only need to sell something that is overpriced to me.

spacebag+shovel=leaves no banking trail.

[peanuts]

i read your story of your friend, i liked gold back in 2002-2003,, and now newbies are posting all those stocks from back then who are just now making a profit (the stocks that is) anyway,, i also keep being reminded of 'lord of the rings',, it was the desire for that gold ring (and power) that lead those charactors to go insane/mad or die. fortunitely, alot of older traders i see posting around the net see gold for what it is, a trading tool backed by ideas,truths and lies.

meantime,, no matter how many times they tell me the $usd is going to collapse, i put buckets out to catch 'falling usd's' as an american i dont have to buy them like other countries i only need to sell something that is overpriced to me.

spacebag+shovel=leaves no banking trail.

That's a very long way to say that you think gold is overpriced, and you would rather keep the Dollars from its sale.

Maybe I missed something in all of my research over the last few years... Can you tell me some of the bullish fundamentals for the Dollar? Are you expecting the FED to take actions that could stop and reverse direction? On what basis are you making the claims that Gold is overpriced?

[tagthatstock]

cuban outlawed the$usd in 2004,, and yet more and more money keeps getting sent to cuba and stuffed in mattress's,, cuba / fidel gets mighty mad at america every time the subject of america adopting cuba comes up. (in fact it was that talk that outlawed the usd in cuba)

now the gold bugs (newbies are running around the net bashing the govt and pumping stocks with worse f/a than the us g. goldbugs cant have it both ways,, and according to the world data just released a few months ago,, the us debt is backed by 73% gold.. (more than adiquate by most peoples limits)

i see goldbugs pumping stocks we played UP from .02 in 2002-2003 to $2+ and now they want to 'wash and rinse' as if these are new gold stocks.

and all that 'debt that is bad' and cant be 'paid for',,, lol,, hello sparky,, it is being bought,, you are buying it i am buying it..........its called your 'healthcare' tax.

(btw- i suspect the fed raises rates in a couple of weeks,, make sure your investments are truely buyout worthy because this nice little rally is actually distribution and a whole lot of prep work for shorting against the box (google it for proper understanding)



lets say i have 5lbs of flour,, and i pour 1 tablespoon of dirt into the mix.. would you notice? prolly not,, what if i poured 2 tablespoon of dirt? again prolly not.. what about a cup of dirt.. stangely enough,, you would prolly not notice enough to complain. well the flour is your benefits,, the dirt is the bad or risky debt..

now just like car insurance,, you pay $$$ for 'insurance that is good for this amount of time'....(this is where we pour the dirt) because odds are if you are getting into 'healthier habits' or whatever,, you wont visit the doctor as much (x2+ if i made you pay for the visit),, at the end of 'time' (yearly in this case) you accept that your 'insurance required by the govt' has expired so you dont question whether or not it was ever 'good or bad',, all you know is you are conditioned to 'buy next years worth'.

something to think about. --the goldbugs have been dishonest for profits.

[peanuts]

I'm going to parse your relevant quotes and respond below each thought:

cuban outlawed the$usd in 2004,, and yet more and more money keeps getting sent to cuba and stuffed in mattress's,, cuba / fidel gets mighty mad at america every time the subject of america adopting cuba comes up. (in fact it was that talk that outlawed the usd in cuba)

Who the hell cares about Cuba? If what you say is the truth, and I don't entirely doubt it but do question the scope of the activity, then the Cubans who are keeping dollars are doing exactly what gold buyers are doing today. That is, they are exchanging one currency for another which they feel is more stable or more valuable. People are doing that with gold. They are exchanging USD for Gold. Gold is money, and don't ever forget or deny that.

now the gold bugs (newbies are running around the net bashing the govt and pumping stocks with worse f/a than the us g. goldbugs cant have it both ways,, and according to the world data just released a few months ago,, the us debt is backed by 73% gold.. (more than adiquate by most peoples limits)

This is ludicrous!!! Backed by WHAT gold? Perhaps your history books taught you something else, but the fact is that the USD hasn't been on the gold standard since the 70's. Debt backed by Gold? Get real! The US debt is back by the good faith of the bond buyers. If they think we can repay the bonds with interest, then they buy them up. But they are only purchasing more USD. They have NO CLAIM on any gold when they buy our bonds.

(clipped healthcare mumbo-jumbo... not sure of the relevance of such)

btw- i suspect the fed raises rates in a couple of weeks,, make sure your investments are truely buyout worthy because this nice little rally is actually distribution and a whole lot of prep work for shorting against the box (google it for proper understanding)

Ah ha! You said it... "you suspect" On what basis? Why would the FED raise rates so soon? The language in the reports hasn't wavered. Don't you remember that they say rates will remain low for the foreseeable future? If and when the FED raises rates, it will signal their reaction to an inflationary environment. And, unless you're really thick, you know the relationship between inflation and gold.

here, read this article: http://news.coinupdate.com/was-the-f...surprise-0456/

I did a Google search for "shorting against the box" strategy. First of all, it was no longer tax relevant after 1997 (a period in time where I think you're stuck) And, secondly, you are speculating on what a mass of investors are going to do. The way you speak of it, it is a foregone conclusion. You're way out there, Tag. I cannot subscribe to the crap you're selling.

(clipped the "dirty flour" and "insurance" metaphors that came from and then went nowhere)

something to think about. --the goldbugs have been dishonest for profits.

Again... SHOW ME!!!! Your statements are backed by NOTHING. No proof, no quoations, not even past performance. There are no monkeys banging on keyboards at this forum (well, maybe one or two)... bring us some meat to chew.

And, if you take the time to REALLY go through this thread, then you'll see where the dishonesty lies. And, you'll see exactly who has been spot on, and for how long.

[tagthatstock]

you should care about cuba,, most americans cant compete with their education level.. they may be poor,, but they aint stupid or lazy..

prepare your closed mind with this phrase: Si' senor'

as for gold,, again do a little more googleing,, (ps even nano technology is looking at making gold,, and we already know the history of canada suppling goldbugs with fake gold.

BIS Gold Swaps and China: Two Cases for Gold Bearishness
24 comments | by: Kalpa July 09, 2010 | about: GLD / IAU / SGOL



The recently released annual BIS report [pdf] revealed that it has engaged in record setting gold swap contracts in early 2010 which have tripled the amount of gold that the BIS normally holds. The BIS is considered to be "the central banker's bank" and its board members include the likes of Ben Bernanke, Jean-Claude Trichet, and Mervyn King.

The amounts were reported by the WSJ 7/7/2010: Central Banks Swap Tons of Gold to Raise Cash, Surprising Market

Starting last January, when things were heating up in Greece, a number of Central Banks pawned their gold [349 metric tons] for currency to the tune of $14 billion in swap contracts which need to be settled later. The expectation is that if the currency cannot be paid back, the gold might be put on the open market.

A flury of speculation for the swaps has been flying around. Suspected motives behind them included the fact that gold prices were high at the time, the method of raising cash had the advantage of being a somewhat invisible move, that it was a bridge loan for the IMF, that the swaps were made for peripheral central banks since restrictions in place made the usefulness of such swaps limited for eurozone banks, and that it was a cheaper choice than obtaining loans from commercial banks.

The swaps, though not a large part of the wholesale money markets, are surprising because until this year the amount of gold held at the BIS had been stable for many decades.

The answer behind the mysterious moves was revealed by the WSJ 7/7/2010 in a follow-up story here. The BIS revealed to the WSJ in an email that the moves were "purely market operations with commercial banks", but the banks were not identified. All contracts are to expire within a year. (FT/Alphaville analyzes this announcement further if you're interested.)


While no surprise, this is not exactly a comforting explanation.

As an aside, the U.S. holds 73% of its reserves in gold as compared to 2% for China and Brazil, for example. In another recent surprise for gold bugs, China has announced that it will not be adding more gold to its reserves.--(tag adds this is NOT good news for banks either


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do you want to live in a world where all currency and debts are backed by gold? what should we do to the people without gold? should the farmers rise up and say,, if you own gold we will withold your food? or if somebody says,, buy all the gold you like, when the time comes,, i will simply come to your home and clock you and simply take your gold.


should your employer only pay you in gold. and what if the grocer decides you can only buy with gold,, how about if your cellphone co wants payment in gold? are we talking about a wonderful cured world? now,, seems to me that isnt a better world,, its a worse world.- but do what you like,,


gold bugs got nervous when they feered deflation was on the table and gold would no longer be needed,,,, now you gotta worry about a raise in rates.. soon another 'theme' will pop up and goldbugs will have to put that fire out..

i suggest goldbugs eat well and get some rest,, for this and the entire bubble is built on the gold bubble.

how many people have lived well without debt and without gold.----plenty.