Should I buy Silver and Gold?

[billyjoe]

I hope your bid fills. I like GRS.

Peanuts,

I did get it at 8.90 and there's been no lookin' back. Currently afterhours it's 9.48.

-----------Still filling the attic with copper rolls. Holding steady at 25-30% copper per roll checked.

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

[peanuts]

Peanuts,
I've got a bid in for GRS Gammon Gold. They mine about 1 mil. oz. silver and 25,000 oz. gold each quarter. Sorry, that is total only for 1 mine. Actual numbers per quarter ending Sept. 1.3 mil oz. silver, 50 k oz. gold.

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

I hope your bid fills. I like GRS.

[billyjoe]

Peanuts,
I've got a bid in for GRS Gammon Gold. They mine about 1 mil. oz. silver and 25,000 oz. gold each quarter. Sorry, that is total only for 1 mine. Actual numbers per quarter ending Sept. 1.3 mil oz. silver, 50 k oz. gold.

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

[peanuts]

...The historical hedge against inflation and the well known monetary uses of gold make it more attractive to most people that want to invest in precious metals. This drives market demand, and thus, drives price higher for gold as it is a more recognizable investment vehicle in the PM sector. But the fundamentals always win

Silver price at the time of this post, $16.76
Gold price at the time of this post, $1009.75

Silver price today, $17.81 (a 6.26% climb)
Gold price today, $1057.50 (a 4.73% climb)

But all the headlines talk about gold, not silver. Who's really winning this game?

You want to make money in commodities? Great, buy gold like everyone else. Want to REALLY make money in commodities? Buy silver, and grain, and the "lesser known" commodities. If you're a good stock picker, then miners offer a great way to leverage the actual commodity action.

7 more years left in this commodity bull run

[peanuts]

Peanuts,
Wouldn't then silver be even more underpriced when adjusted for inflation?

---------billy

Precisely! Some estimates point to a silver price of $300+ per troy ounce. Currently, it trades around $16.20.

Some even say that gold to silver ratio of 16:1 is too low in today's terms. Their argument is that silver has so many industrial uses, and gold so few. They also say that the disappearing supply of silver (due to industrial consumption) and declining mine production makes silver more rare than gold, and thus can trade near to a 1:1 ratio. But those days are far off, if even possible.

The historical hedge against inflation and the well known monetary uses of gold make it more attractive to most people that want to invest in precious metals. This drives market demand, and thus, drives price higher for gold as it is a more recognizable investment vehicle in the PM sector. But the fundamentals always win

[billyjoe]

Peanuts,
Wouldn't then silver be even more underpriced when adjusted for inflation?

---------billy

[peanuts]

The IMF periodically sells gold and silver holdings. This isn't anything new, and in fact may have been priced into the market already. China has publicly stated that they have been increasing their gold holdings as part of their diversification of their total financial holdings. They are moving away from the US Dollar as their primary asset.

The real news for gold and silver is the criminal manipulation that is currently permitted in the market by the COMEX. In 1933, the gold price to silver price ratio was about 16:1, today, it is more like 60:1. And, in inflation terms, gold is undervalued by a few thousand dollars per ounce.

[Peter Hansen]

IMF Dumps 400 Tonnes of Gold!

Ihe IMF is preparing to DUMP 403 Tonnes of GOLD....WHY You may ask? .....well apparently rumor has they have been controlling the GOLD market for years ......BUT NOW Beijing is willing to buy the whole Shi* Load for a bargain price. The abiity for the IMF to control GOLD is fading fast , and none too soon.
Here is the article :

http://www.theaustralian.news.com.au/business/story/0,28124,26109593-36418,00.html

Also who is buying? , well according to "International Forecaster", supposedly Helicopter Ben is using Hedge Funds to secretly buy HUGE sums of US Treasuries, with Caribbean Banks doing the buying....Is this absolutely true .....well no one is 100% sure!

Wow the International Forecastor is definitely NOT Reading For Optomists . LOL Read this article

http://theinternationalforecaster.com/International_Forecaster_Weekly/Errant_Policy_Continues_to_Threaten_Market_Stability

[billyjoe]

Gold has surpassed the $1000 threshold and seems to want to stay there.

Silver is above $14... what I consider to be a key price level. Currently, it is above $17

We are only 7 years into a 14 year bull market for commodities. You can quote me on that.

Peanuts,
I screwed up yesterday. Could have bought a bunch of silver at about 9.4X face value. Got home and checked to see current melt value of 12.3X face. Drove over 40 miles back to the joint . They said a coin dealer had just bought $150 worth and most of what I was lookin' at. These were uncirculated coin sets so the nickles and pennies were throw ins. Next time I'll keep closer tabs on current silver coin melt value.

-----------Still doin' the copper penny thing. I find it relaxing. Maybe I'll quit at 1000 rolls.

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

[peanuts]

Gold has surpassed the $1000 threshold and seems to want to stay there.

Silver is above $14... what I consider to be a key price level. Currently, it is above $17

We are only 7 years into a 14 year bull market for commodities. You can quote me on that.

[peanuts]

i still have plenty of silver quarters for sale if anyone is interested.

Peanuts,

So far I've bought only 21.95 face value silver coins. It probably would help if I lived closer to a large city.

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

Some of the silver coins might be worth more than just the silver content if you can find the right buyers. Here's an online site that gives you a "collector's value" of the coins. Of course, if you take them to a coin dealer, his/her prices offered will be lower. LINK

And here is a link on how to grade the coins: LINK

Maybe you can start to make a nice profit immediately from the nice ones, keep the junk, and re-invest into more coins, or diversify into other forms of bullion...

I'm running an ad in the Pittsburgh area to see if I get any hits.

[billyjoe]

Peanuts,

So far I've bought only 21.95 face value silver coins. It probably would help if I lived closer to a large city.

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

[peanuts]

Comex "paper" silver

From SeekingAlpha:

"Ending last week with nearly 119 million ounces of silver (Moz) in the four COMEX depositories, this week the word has been get your silver while you can. Slightly less than 2 million ounces of silver has been withdrawn from COMEX stocks in three days ( July 6-8 ), with eligible silver dropping from 55.4 moz to 53.5 moz. Significant withdraws were experienced by HSBC Bank (HBC) (down 1.26 Moz) and Sottia Mocatta (down 546,000 oz). Brinks also registered a withdraw of 30,000 oz of silver. The reduction is only 2% of total stocks that COMEX claims, however it is nearly 5% of eligible stocks that can be used for futures redemption. The remainder is registered, but is already allocated (owned) by other investors who are storing it in the vaults.

COMEX futures contracts however have been let for 429 Moz as of July 6 (vs 53 Moz of "eligible" silver in the vaults. If you add the future spreads, then COMEX has 522 Moz of contracts out vs 53 Moz of silver to cover those contracts.

For leverage fans, that is 10 oz of silver under contract for every ounce of silver available. If you count the fact that COMEX allows you to purchase a contract with 10%, then actual leverage vs physical metal held by COMEX is closer to 100 to 1.

That should answer the question as to why someone would refer to it as "paper" silver. It should also generate a question as to why so much silver is starting to flow out of the COMEX."

What they are doing is just plain and simple, WRONG... when someone claims to have something for sale, and you buy it based on what they tell you, but then find out it is something else, then the seller is committing fraud.

Let's call it the CRIMEX or CONEX instead of the COMEX

[Peter Hansen]

Gold Options Trades

ON 6/17/09 37,247 OPTIONS CONTRACTS were traded betting that GOLD will be TRADING at $1500 - $2000 per ounce, between NOW and November . ONLY 2384 PUT OPTIONS CONTRACTS were traded Betting that GOLD would be BELOW $800 between NOW and NOVEMBER . Do the BIG MACHERS know something we do not?

[Peter Hansen]

So ya like GOLD Eh?

Ya like gold.....let me give it to you straight. Don't get fooled by the Rare Coin Dealer, that worthless crap you see on TV all BS . Take a few dollars and throw it into KGN ( Keegan Resources) For a mere $3.64 per share , you will have your own GOLDMINE with this baby . KGN is a small African Gold miner that is blasting up the chart .........SWEET!