Should I buy Silver and Gold?

[billyjoe]

Peanuts,
I have a small position in Nickel. It is rather low priced relative to a few years ago and being very far north I can pick up lots of pre 1982 Canadian Nickels. Current melt value 10.7 cents. The 1981's and earlier are 99% Nickel.

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

[billyjoe]

Update on my quest to find $1000 in silver coin before Jan 1st 2012.
Totals to date found in coins from bank:

129, 35% silver wartime nickels melt value 2.26 ea total 291.54

32, 90% silver dimes (pre 1965) melt value 2.91 ea. total 93.12

1, 90% silver quarter (pre 1965) melt value 7.28 ea. total 7.28

39, 40% silver halfs (1965-1970) melt value 5.95 ea. total 232.05

7, 90% silver halfs (pre 1965) melt value 14.55 each total 101.85

2, 50% silver Canadian dimes ('67,'6 melt val. 1.51 ea. total 3.02

Total as of July 27th $728.86 silver. Face value 32.90 or 22.15X face


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

[peanuts]

Raising rates is far far far away. The Ben Bernanke has said repeatedly "an extended period of time" when referring to the historically low interest rates. If it does come to the point where they need to raise rates it will be because their hand is forced due to inflation. But, at that point gold and silver should be much higher than now.

Everything is a "bubble" No price action is a perfect straight line. Gold and Silver bubble will be a reflection of the FED's actions to devalue our dollar. That is the real bubble... the money supply. When the spigots gets turned off, then gold and silver price highs are in sight, if not already reached. We are nowhere near that point. More money will be printed, QE cubed is right around the corner when nobody steps up to the plate to buy our bonds in June when QE2 burns out. That's why Bill Gross, the manager of the largest bond fund on Earth has gone from 12% of the portfolio in US 30yr treasury bonds in January to 0% in Feb, to -3% (short) in March!!! Here's the article:

http://finance.yahoo.com/news/PIMCO-bets-against-US-rb-3790514655.html?x=0

The best thing about silver is that you can buy it in increments of dimes, quarters and halves, currently about $3 for a dime, $7.50 for a quarter and $15 for half dollars. These all need to be dated 1964 or older, and are 90% silver. When you save up lots of money, then you can buy 1 oz rounds of .999 fine silver that are about $42 each right now, and get discounts when you buy rolls of them.

If you want to invest then you want to dollar cost average into your position. If you buy now, then buying for less in the future is a gift. Put a little bit away each time you get paid and then make a buy each month.

$50 silver seems to have a target on it.

Today, the FED said, "EXCEPTIONALLY LOW RATES UNTIL AT LEAST MID 2013"


You know what to do by now...

[billyjoe]

The silver is still rollin' in. I gave my local bank $5.50 today. They gave me back 11 half dollars worth $85.12 in melt value as of today's closing silver price.

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

[em26jamie]

The past 2 weeks have been really good for my gold and silver stocks. Looks like I got in just in time.

[peanuts]

The past 2 weeks have been really good for my gold and silver stocks. Looks like I got in just in time.

Don't be afraid to add to winning positions.

Gold and Silver are seeing a nice surge in buying. Those trying to hedge their dollar denominated assets are seeking alternative stores of wealth. Silver has potential for even bigger gains, and I would not be surprised to see money taken out of Gold and put into Silver.

The current GSR is 43.22 with declining moving averages

[peanuts]

IF YOU HAVE NICE PROFITS FROM GOLD, THEN NOW, RIGHT NOW (TODAY!!!) IS THE BEST OPPORTUNITY TO SELL SOME OF THAT GOLD AND PUT IT INTO THE US STOCK MARKET SINCE MARCH OF 2009:

[hags]

Hmmm...not sure I agree...pitchfork says the ratio is right at the median....it could go either way..

...note the early 09' ratio....now there's a sign to dump gold and get into stocks.....

hags

[riverbabe]

Hmmm...not sure I agree...pitchfork says the ratio is right at the median....it could go either way..

...note the early 09' ratio....now there's a sign to dump gold and get into stocks.....

hags

Wow a pitchfork. I think it's the first time I've ever seen one of those pointed out!

[peanuts]

Hmmm...not sure I agree...pitchfork says the ratio is right at the median....it could go either way..

...note the early 09' ratio....now there's a sign to dump gold and get into stocks...

Thanks for that perspective. I was going off of a simple fix point move from the 150 MA (weekly) which is basically the same as a 3 year average ratio. In Mar 09, there was a fixed 7 point difference from MA to peak ratio.... we are very close to that same difference today. (lower, but close)

I took some gold off the table on Monday and then again this morning. Damn tax man now commeth...

[peanuts]

The GSR is currently in favor of Silver, rather than Gold

Might not be a bad time to play that ratio, and short gold and go long silver...

[hags]

The GSR is currently in favor of Silver, rather than Gold

Might not be a bad time to play that ratio, and short gold and go long silver...

Guess I read the GSR a bit different...Present GSR less then 50 means gold is less then 50X silver...so selling your silver and buying gold is better at a low GSR then when the GSR is 70+.....unless you're trading paper instead of physical?....which is totally separate from each other.....

hags

[peanuts]

Guess I read the GSR a bit different...Present GSR less then 50 means gold is less then 50X silver...so selling your silver and buying gold is better at a low GSR then when the GSR is 70+.....unless you're trading paper instead of physical?....which is totally separate from each other.....

hags

You are right, but you can play the ratio by hedging your short gold with a long silver when GSR is high....

Say you have 1 oz of gold, and it equals 50 ozs of silver.... a GSR of 50... so if the GSR goes down, that means silver price is higher in relation to gold price... that same 1 oz of gold only gets you 40 some oz of silver... so silver became MORE VALUABLE as compared to gold. When the GSR is high, then the opportunity is to short gold, long silver. The historical ratio (which should not really be considered in modern times) is 1:15, G:S We have a long way to go to get there.

[hags]

You are right, but you can play the ratio by hedging your short gold with a long silver when GSR is high....

Say you have 1 oz of gold, and it equals 50 ozs of silver.... a GSR of 50... so if the GSR goes down, that means silver price is higher in relation to gold price... that same 1 oz of gold only gets you 40 some oz of silver... so silver became MORE VALUABLE as compared to gold. When the GSR is high, then the opportunity is to short gold, long silver. The historical ratio (which should not really be considered in modern times) is 1:15, G:S We have a long way to go to get there.

Guess I'm looking at a different GSR chart then you...1:15 ratio hasn't been seen in 30+ years....you expect it now?

I bet we see 70 or maybe even 80 before we see 15....

hags

[em26jamie]

Every time I see "long silver" I want to put a "John" in there.