Should I buy Silver and Gold?

[peanuts]

what would trigger it to move in either direction one way or another in your mind. if the market goes down farther will silver move up or visa versa. anything specific you are looking for to happen.

I don't think it has much to do with the market, but more to do with the dollar. In the long term, inflation will contribute to increased prices for all commodities. But, as a play against inflation, PMs have an added advantage for their historical recognizability as hedges.

The problem right now with PMs is the manipulation on the comex to hold gold and silver down. There are volumes to read and write about this, but a Google search for Ted Butler could give you more information about this than I can.

Technically, the short term outlook on silver seems like a bearish SHS, and a possible break below a weekly 4 ($11.75) which could take it as low as $8.10

[skiracer]

what would trigger it to move in either direction one way or another in your mind. if the market goes down farther will silver move up or visa versa. anything specific you are looking for to happen.

[peanuts]

SLV - $11.85 just printed... right now. Just thought I would let you know

Well, if you missed the above opportunity, then perhaps today is your lucky day. Current price is around $12.00. You can go long here, and place a stop just below $11.74 for some downside protection. Or, you can go short here and target $8.50. A stop at $12.30 on a short play will give you about the same amount of risk as the long play.

What I am trying to tell you is that SLV will not be trading at $12 for very long... it could go either way, up or down, by a large percentage move.

[peanuts]

Nice call buddy! did you pick up a tip off the Chinese on your trip!?

LOL I cannot reveal my sources

Spike's wave counting techniques helped me, and his chat comments helped me find a good price that I could focus on. If Spike is Chinese, then you could say that.

It seems like this is the start of a 5 up, but won't be confirmed until SLV gets over the resistance at $14.40

I'm not as familiar with gold prices, but there is double top resistance at $1000... if that breaks, maybe we'll see $2000 by 2010

For all these years, we have been exporting our inflation... now we're keeping it at home with $300 billion being reserved to buy T bills. I don't see how this can be good for the US Dollar. Not only that, but doesn't this fact in itself suggest that foreigners have stopped showing up at the T bill store to buy? Or, maybe they just don't have any money to continue to buy them. Arabs and Russians, who had lots of oil dollars used to do this. I guess their demotion has had some effects on the treasury market...

When do we get our barcodes?

[dmk112]

SLV - $11.85 just printed... right now. Just thought I would let you know

Nice call buddy! did you pick up a tip off the Chinese on your trip!?

[peanuts]

Silver should be finding support near current prices. A possible low is $11.85 on SLV

SLV - $11.85 just printed... right now. Just thought I would let you know

[peanuts]

There is also an ETF that is double Silver.... AGQ

[peanuts]

Silver should be finding support near current prices. A possible low is $11.85 on SLV

[peanuts]

If you didn't know already what is happening to our money, then this video may help to open your eyes:

YOUTUBE VIDEO

[IIC]

For some reason I recall that I was the one who called the bottom on gold...But no matter as long as someone keeps Peanuts away from the crowns on my molars...LOL

[skiracer]

my gold is now more than a double, and i am holding a decent amount of silver bar and coin which i still want to unload.

[New-born baby]

You shouldn't be excited about this. In fact, I never meant to come off as excited. If you go back through the thread, I have been pounding the table that this is where your money should be... I even correctly called the bottom at $8.50, then showed charts that indicated a good buying opportunity. But I'm not posting this crap to get excited for anyone that is holding gold and silver... I'm posting because there are people who need to know what to do in the time that we are now living. But, it seems that even though I DO post this crap, that nobody really reads it. By the time they believe me, it might be too late.

If I want to throw a party for silver and gold, I might as well hold a funeral for the economy at the same time. This thread is more about a way to balance to these crazy times in the market.

Yes, Peanuts, my comments were motivated far less by your thread, and much more out of disgust for our national leadership. Please do not let my comments curtail your fine work. I love my country, and I hate to see it destroyed by welfare and debt. Imagine, they have packed up almost every factory in the USA and shipped it to China. It reminds me of how the Israelites plundered Egypt when they left under Moses.

Please excuse my comments, Peanuts.

[dmk112]

I Like this chart.

[dmk112]

Peanuts - good stuff here you've been posting, I think NBB is just frustrated, like many of us, what is happening to our country.

I just got this newsletter today on gold:

Gold breaking $1,000 per oz on Friday is not the top of a bubble... but merely the beginning of what will be the biggest boom of our lifetimes.

Besides the Real Estate bubble which isn't done bursting... the only real bubble we have today is the Dollar Bubble because while Gold has been rising, so has the U.S. Dollar Index.

How could this be? Well, foreign currencies have been losing their value even faster than the Dollar. Central banks around the world have been following our lead by lowering interest rates and printing money.

The United States is the cause of the world's financial crisis and for Asian and European countries to be making the same mistakes as us... really tells me we could soon see a worldwide collapse in all currencies which could force the world to adopt an International Gold standard.

However, I don't yet consider this to be the most likely scenario to happen. What I believe will happen is Americans who are hoarding Dollars will now start buying Gold and Silver with these Dollars and the rest of the world will once again copy us.

Only, when they copy us... they will use their U.S. Dollar reserves to buy Gold and Silver which will lead to a collapse of the U.S. Dollar and a strengthening of their currencies.

Let me ask you this... when you go out to a bar or restaurant and talk to random people you don't know... do you ever meet anybody who is using their Dollars to buy Gold and invest into Gold stocks?

Everybody I meet is still talking about Real Estate and trying to time the bottom of the Real Estate market. When I speak to an average American about investing into Gold... they appear to be completely clueless and look at me like I'm nuts.

The reason why most Americans were behind Obama's stimulus plan is because even the Republicans who were against it, only speak about how much it will cost taxpayers. With Obama promising tax cuts to the middle class... most people don't think it will cost them anything.

A few years from now when the average American needs to work a whole week to earn enough money to buy one loaf of bread and a small piece of cheese... it will finally hit them that the stimulus plan was a major mistake.

Our country is fast approaching an inflationary crisis that will make today's financial crisis look miniscule in comparison. To somebody relying on social security or welfare, it doesn't matter if Real Estate and stock market prices go down... but it will matter if their social security or welfare check arrives and it doesn't have enough purchasing power to buy a can of soup.

Fannie Mae and Freddie Mac were created to make housing affordable, but they actually made housing more expensive. Sallie Mae was created to make colleges affordable, but it made colleges more expensive. The stimulus plan was meant to stimulate the economy and create jobs... but it will stifle the economy and lead to higher unemployment.

Everything the clueless politicians in Washington do to help the economy, make things worse... and it is both the Democrats and Republicans.

In order to survive the upcoming inflationary crisis, Americans can't rely on the government to help them. They need to take steps to protect themselves and the most important thing to do is buy Gold and Silver.

I believe everybody will be shocked by how quickly Gold goes to $1,500 and then $2,000. I think we would be there already if it wasn't for all the leveraged up hedge funds that were forced to liquidate their Gold in 2008 to cover margin calls.

When Gold broke $1,000 in March of 2008, it was all speculators on margin driving the price up. Today, all of the speculators are gone. Much stronger hands are buying Gold today and after Gold closes above $1,000 for a few days in a row, it is unlikely we will see it below $1,000 ever again.

In my opinion, worst case scenario for us and best case scenario for the rest of the U.S., Obama will start to get the picture later this year and reverse course in enough time so that Gold only goes to $5,000 per oz within the next few years.

If Obama continues down this same path throughout 2009 and 2010, we could start to see hyperinflation by 2012... where Gold could literally go to infinity.

The question is this... after this stimulus fails, will Obama be able to convince Americans that we would've been much worse off without it and our only choice now is an even larger stimulus?

The main reason we haven't seen massive inflation up until today... is because the U.S. Treasury has been successful at suckering in an increasing supply of foreign lenders so that it can pay off its old debt plus interest by issuing larger amounts of new debt.

With China planning their own $586 billion stimulus, which they can actually afford with their trillions in reserves... they are obviously starting to care more about investing into their own economy, than artificially supporting ours. They are showing signs that they want to decouple from the U.S.

[jiesen]

well put, peanuts. if nobody responds, though, it doesn't mean they're not reading your writing on the wall- it's just that they're not all that excited about it, as NBB suggests.