Should I buy Silver and Gold?

[skiracer]

I do prescribe to the idea of buying commodities for a long term holding period.

However, due to the unwinding of positions taken on credit, and the flight to the safety in a US dollar, I foresee a short term deflationary period which will stagnate the price of commodities for an equal amount of time. Commodities do not have the same volume as currency trading, so I would suspect that a trend reversal in commodities will follow the trend reversal in the USD. This will give everyone plenty of time to dump dollars and buy commodities. I give deflation a period of 1 to 2 years max.

Once the dollar dumping occurs, the US is in for a period of hyper-inflation. This is the reason that I prescribe to the idea of buying commodities for the long term. Once the next round of inflation starts, there won't be much to stop it.

I would strongly suggest to anyone who understands the above to take the time now to get your financial house in order and become a net saver if you are not one already. During the next decade, peace of mind will not come easily for the majority of US baby boomers. The old saying goes, "You reap what you sow"

if you are a baby boomer and have not started saving or already have it saved and put away it probably is going to be to late. good thoughts though peanuts. I am still holding my GLD position from mid $40's levels and plenty of silver. I am looking to buy silver again at these depressed prices or lower. if the shit hits the fan and things really go sour it will be an asset to have stashed. i am also stocking up on everything that is a staple. canned goods, dry milk, small denomination bills (1-5-10 dollar bills so you don't need anyone to make much change for you). I even put a couple of 50 gallon drums in for storing about 100 gallons of gas. just in case things get to the point where certain items become hard to get. it wouldn't hurt to have some self protection items on hand in one's house.

[New-born baby]

if you are a baby boomer and have not started saving or already have it saved and put away it probably is going to be to late. good thoughts though peanuts. I am still holding my GLD position from mid $40's levels and plenty of silver. I am looking to buy silver again at these depressed prices or lower. if the shit hits the fan and things really go sour it will be an asset to have stashed. i am also stocking up on everything that is a staple. canned goods, dry milk, small denomination bills (1-5-10 dollar bills so you don't need anyone to make much change for you). I even put a couple of 50 gallon drums in for storing about 100 gallons of gas. just in case things get to the point where certain items become hard to get. it wouldn't hurt to have some self protection items on hand in one's house.

.

Spoken like a true redneck, Ski. (That IS a compliment!) I agree with you.

[New-born baby]

I do prescribe to the idea of buying commodities for a long term holding period.

However, due to the unwinding of positions taken on credit, and the flight to the safety in a US dollar, I foresee a short term deflationary period which will stagnate the price of commodities for an equal amount of time. Commodities do not have the same volume as currency trading, so I would suspect that a trend reversal in commodities will follow the trend reversal in the USD. This will give everyone plenty of time to dump dollars and buy commodities. I give deflation a period of 1 to 2 years max.

Once the dollar dumping occurs, the US is in for a period of hyper-inflation. This is the reason that I prescribe to the idea of buying commodities for the long term. Once the next round of inflation starts, there won't be much to stop it.

I would strongly suggest to anyone who understands the above to take the time now to get your financial house in order and become a net saver if you are not one already. During the next decade, peace of mind will not come easily for the majority of US baby boomers. The old saying goes, "You reap what you sow"

"During the next decade" . . . what a quote. Probably very true, too. UGH.

[skiracer]

.

Spoken like a true redneck, Ski. (That IS a compliment!) I agree with you.

actually more of a survivalist nb. the army taught me to survive you must have your rifle cleaned and ready to fire at all times. also you must have all your gear ready. hav ing a few extra rounds of ammo never hurt. i'm basically ready for anything and anyone that would come to my place and look to take anything from me in case it comes down to that. i'm hoping that it doesn't come down to that but i can imagine that scenario evolving.

[New-born baby]

actually more of a survivalist nb. the army taught me to survive you must have your rifle cleaned and ready to fire at all times. also you must have all your gear ready. hav ing a few extra rounds of ammo never hurt. i'm basically ready for anything and anyone that would come to my place and look to take anything from me in case it comes down to that. i'm hoping that it doesn't come down to that but i can imagine that scenario evolving.

I think we might have civil unrest the day after the election. Hope not, but . . . .

[peanuts]

Gold going to $740, Silver to $8.50

If they break lower than that, then beware of overall price deflation.

Silver hit $8.50 today... Gold hit the $740 mark earlier and then broke into the $600's. Wow, just amazing

[peanuts]

The comex is cheating

It's the beginning of December and the Comex (spot) price of silver is $9.46 per Troy ounce of 999/1000 purity silver. So, I decided to go to some coin shops around the city of Pittsburgh to see what kind of, and how much of, and the cost of- silver in any form. I was considering buying some physical bullion at these depressed prices.

Many of the smaller shops quoted limited supply of bullion (90% junk silver coins only) and had no 999/1000 bars and rounds... NONE! They did have some Silver Eagles that were graded by a numismatic society and were priced in the $75 to $200 per coin range. One coin is one Troy ounce, only.

So I went to THE largest coin shop in town to see what they had to offer. They did have more bullion than anyone else, but they were asking prices of more than 50% ABOVE spot!!! Can you believe that?

• Junk Morgan and Peace silver dollars were quoted at $15 each. Higher grades were priced substantially higher.
• 10 Troy ounce bars were quoted at $150 each, and one Troy ounce bars and rounds at $15
• pre-1965 junk silver coins of 900/1000 purity were quoted to be $10 on the face value
• Circulated silver eagles were $17 each
• They had ONLY A FEW 100 Troy ounce bars, and ZERO 1000 Troy ounce bars

My intention when I went in the store was to buy at least $3000 worth of silver bullion, and I let that fact be known to them. They would not budge on price for this bulk buy. In the nicest way possible, I told them that they were being unreasonable. The person I spoke with was either the shop manager or owner. She told me that THERE IS A RUMOR THAT THE COMEX DOES NOT HAVE THE SILVER TO BACK UP THE PAPER MARKET ON WHICH THE PRICE IS BASED

This shop actually pays ABOVE the spot price to people coming in... they pay $12.50 per Troy ounce of 999/1000 silver from the public. They have no shortage of public buyers at $15 per Troy ounce.

Can this rumor be true? It certainly seems that way to me. The market is a function of supply and demand. If the Comex has more paper silver than physical silver, then there is a disconnect of supply. Thus, the traded paper contracts MUST be worth less than what the contact would be worth if the amount of paper equaled the amount of silver supposedly backing the contract.

In other words, If I give you a piece of paper that says you can have 2 apples, but I only have 1 apple in my house, is that piece of paper worth the 2 apples that I say its worth, or the 1 apple that I actually have?

THE COMEX IS CHEATING. IT IS CHEATING. IT IS CHEATING.

The price is beginning to reflect the fact that people know that the Comex is cheating. Once this truth becomes known to more and more people, there will be a big change in price. I ASSURE YOU OF THIS.

Please consider this, friends. It is an opportunity that I'm sharing with you. The more people that know about this, the better. Share this with whomever you think might want to know.

[mrmarket]

My favorite song from Rudolph the Red Nose Reindeer is "Silver and Gold"

[hags]

The "word" is getting out peanuts....

http://www.marketoracle.co.uk/Article7577.html

http://meltdown2011.wordpress.com/2008/10/22/warning-comex-may-default-on-december-gold/

hags

[skiracer]

It's the beginning of December and the Comex (spot) price of silver is $9.46 per Troy ounce of 999/1000 purity silver. So, I decided to go to some coin shops around the city of Pittsburgh to see what kind of, and how much of, and the cost of- silver in any form. I was considering buying some physical bullion at these depressed prices.

Many of the smaller shops quoted limited supply of bullion (90% junk silver coins only) and had no 999/1000 bars and rounds... NONE! They did have some Silver Eagles that were graded by a numismatic society and were priced in the $75 to $200 per coin range. One coin is one Troy ounce, only.

So I went to THE largest coin shop in town to see what they had to offer. They did have more bullion than anyone else, but they were asking prices of more than 50% ABOVE spot!!! Can you believe that?

• Junk Morgan and Peace silver dollars were quoted at $15 each. Higher grades were priced substantially higher.
• 10 Troy ounce bars were quoted at $150 each, and one Troy ounce bars and rounds at $15
• pre-1965 junk silver coins of 900/1000 purity were quoted to be $10 on the face value
• Circulated silver eagles were $17 each
• They had ONLY A FEW 100 Troy ounce bars, and ZERO 1000 Troy ounce bars

My intention when I went in the store was to buy at least $3000 worth of silver bullion, and I let that fact be known to them. They would not budge on price for this bulk buy. In the nicest way possible, I told them that they were being unreasonable. The person I spoke with was either the shop manager or owner. She told me that THERE IS A RUMOR THAT THE COMEX DOES NOT HAVE THE SILVER TO BACK UP THE PAPER MARKET ON WHICH THE PRICE IS BASED

This shop actually pays ABOVE the spot price to people coming in... they pay $12.50 per Troy ounce of 999/1000 silver from the public. They have no shortage of public buyers at $15 per Troy ounce.

Can this rumor be true? It certainly seems that way to me. The market is a function of supply and demand. If the Comex has more paper silver than physical silver, then there is a disconnect of supply. Thus, the traded paper contracts MUST be worth less than what the contact would be worth if the amount of paper equaled the amount of silver supposedly backing the contract.

In other words, If I give you a piece of paper that says you can have 2 apples, but I only have 1 apple in my house, is that piece of paper worth the 2 apples that I say its worth, or the 1 apple that I actually have?

THE COMEX IS CHEATING. IT IS CHEATING. IT IS CHEATING.

The price is beginning to reflect the fact that people know that the Comex is cheating. Once this truth becomes known to more and more people, there will be a big change in price. I ASSURE YOU OF THIS.

Please consider this, friends. It is an opportunity that I'm sharing with you. The more people that know about this, the better. Share this with whomever you think might want to know.

i have plenty of 10 oz silver bullion ingots. we talked about them in the past. i am still interested in selling them if you are interested in making an offer. i also have a large number of silver quarters dated from 1890's to 1965 which i would sell if the numbers were correct. im talking strictly cash if anyone is interested.

[peanuts]

thanks ski!

i have plenty of 10 oz silver bullion ingots. we talked about them in the past. i am still interested in selling them if you are interested in making an offer. i also have a large number of silver quarters dated from 1890's to 1965 which i would sell if the numbers were correct. im talking strictly cash if anyone is interested.

I am interested to know what your prices are on face value for the pre-1965 coins, and Troy ounce for 999/1000 silver bars. If you'd like to send a private message, then that might be best.

[peanuts]

thanks hags!

The "word" is getting out peanuts....

http://www.marketoracle.co.uk/Article7577.html

http://meltdown2011.wordpress.com/2008/10/22/warning-comex-may-default-on-december-gold/

hags

Great links, Hags. I spent 3 1/2 hours last night reading all the info plus the articles linked to the sites. It seems that there are quite a few people who have already realized what became apparent to me after my experience this weekend.

I note that the price this morning has already vaulted higher to $10.30 on the Con-ex market. That's quite a jump from Friday's close of $9.46

[skiracer]

Great links, Hags. I spent 3 1/2 hours last night reading all the info plus the articles linked to the sites. It seems that there are quite a few people who have already realized what became apparent to me after my experience this weekend.

I note that the price this morning has already vaulted higher to $10.30 on the Con-ex market. That's quite a jump from Friday's close of $9.46

that was very observant on your part peanuts. make an offer on the ingots and the quarters. i'll make a count on what i have available.

[MEA_1956]

$XSF don't know how to play it but it took a hell of a leap here lately. $81.00 to $93.00 MEA

[peanuts]

Looks like SLV is in the buy zone: