The Gold and Silver Thread

[Mini 14]

Silver back over $30 today?

 

[PLYMCO_PILGRIM]

Considering that precious metals are one of the few assets in a bull market and a semi-frequent topic of discussion on this board, I figured gold and silver deserved their own thread.

I bought back much of my gold and silver exposure yesterday and added a bit today. There is a bid underneath gold, and though silver is extended, there is support at ~$25-$26. A few weeks of consolidation for silver would do it a world of good.

Wait when did you buy gold?

I put 30% of what I had in my savings account into gold 3 years ago

I was thinking of buying more as an actual investment instead of as a hedge as it looks like gold could crack 2500 in the next few months but I'm very nervous to do so as it is already at unusual highs right now. I'm afraid of buying it and having a gold market bubble burst.

What do you think toro?

 

[Jos]

I Hope you got real Gold and not just paper gold

 

[PLYMCO_PILGRIM]

I Hope you got real Gold and not just paper gold

Gold coins in the mail sir. Momma didn't raise no fools.

 

[Terral]

Hi Toro:

Considering that precious metals are one of the few assets in a bull market and a semi-frequent topic of discussion on this board, I figured gold and silver deserved their own thread.

I bought back much of my gold and silver exposure yesterday and added a bit today. There is a bid underneath gold, and though silver is extended, there is support at ~$25-$26. A few weeks of consolidation for silver would do it a world of good.

The value of the Fed-produced fiat dollar is imploding, which means you need more dollars to buy the same gold/silver commodities. That does not mean that the value of gold and silver is going up, but the value of your dollar is imploding into nothing. The only reason that the dollar has the appearance of having value is because the other currencies are imploding at the same time; because everyone is printing up worthless fiat currency at record pace ...

[ame=http://www.youtube.com/watch?v=DpAbDtl_t1Y]This Guy Knows What Is Coming[/ame]

GL,

Terral

 

[Toro]

I re-established my gold and silver positions today. They tried to bang the precious metals down last week but couldn't, and they moved to the upside. There was weakness into the close but there seems to be a fair amount of support not too much lower.

 

[william the wie]

The Aden sisters are short term bearish, long term bullish at the moment.

 

[liebuster]

Glad to see this thread. I don't know much about investing but I just started buying up silver coins. Been hitting the pawn shops and antique shops because most of those places especially the antique shops don't update their prices.

I ended up buying a bunch of silver dimes and half dollars below spot price, and some of them at about 75% of spot price.

Wish I had more money.

 

[william the wie]

Glad to see this thread. I don't know much about investing but I just started buying up silver coins. Been hitting the pawn shops and antique shops because most of those places especially the antique shops don't update their prices.

I ended up buying a bunch of silver dimes and half dollars below spot price, and some of them at about 75% of spot price.

Wish I had more money.

Since silver is in physical short supply it should appreciate to at least a $200 in real terms to reflect the greater difficulty of recovery of scrap silver in modern usage. Smart move on your part.

 

[liebuster]

Glad to see this thread. I don't know much about investing but I just started buying up silver coins. Been hitting the pawn shops and antique shops because most of those places especially the antique shops don't update their prices.

I ended up buying a bunch of silver dimes and half dollars below spot price, and some of them at about 75% of spot price.

Wish I had more money.

Since silver is in physical short supply it should appreciate to at least a $200 in real terms to reflect the greater difficulty of recovery of scrap silver in modern usage. Smart move on your part.

The way I figured was if inflation got really really bad then what little free market there still is would most likely move back to the silver/gold standard. People would pretty much ditch the dollar and silve coin would be in short supply.

I also figured that more and more people would start getting on the band wagon and realize that they need to do something. The problem for most of those people is they probably don't have alot of money to spend. What are they going to do? Buy 1oz or 2oz of gold? Most likely not. I think the lower cost of silver will be more appealing thus driving up the demand of silver. Thats what prompted me to get into silver. I have very little money after bills and living expenses.

I'm just going to keep looking for small little deals here and there and build my hoard up slowly.

 

[william the wie]

Glad to see this thread. I don't know much about investing but I just started buying up silver coins. Been hitting the pawn shops and antique shops because most of those places especially the antique shops don't update their prices.

I ended up buying a bunch of silver dimes and half dollars below spot price, and some of them at about 75% of spot price.

Wish I had more money.

Since silver is in physical short supply it should appreciate to at least a $200 in real terms to reflect the greater difficulty of recovery of scrap silver in modern usage. Smart move on your part.

The way I figured was if inflation got really really bad then what little free market there still is would most likely move back to the silver/gold standard. People would pretty much ditch the dollar and silve coin would be in short supply.

I also figured that more and more people would start getting on the band wagon and realize that they need to do something. The problem for most of those people is they probably don't have alot of money to spend. What are they going to do? Buy 1oz or 2oz of gold? Most likely not. I think the lower cost of silver will be more appealing thus driving up the demand of silver. Thats what prompted me to get into silver. I have very little money after bills and living expenses.

I'm just going to keep looking for small little deals here and there and build my hoard up slowly.

Google the terms DRIP and DSP those are ways to build portfolios on little money but stick with widow and orphan stocks such as utilities until you are sure you understand the market. At that point you can try to cash in on discounts to market price if you have built up to more than say $2000 spread over 10-30 stocks.

 

[KissMy]

Debunking the "Bankrupt JP Morgan" campaign.

Kid Dynamite's World: JP Morgan and the Massive Silver Short - The Greatest Story Ever Told

I had not heard that "Bankrupt JP Morgan" campaign but I did see this article today from the London Financial Times. JPMorgan cuts back on US silver futures

JPMorgan has quietly reduced a large position in the US silver futures market which had been at the centre of a controversy about its impact on global prices for the precious metal.

The decision by JPMorgan was an attempt to deflect public criticism of the bank’s dealings in silver, a person familiar with the matter said. The person added that the bank’s position in silver would from now on be “materially smaller” than in the past.

A group of small precious metals investors has alleged that large short positions – or bets on lower prices – in silver futures held by several banks, including JPMorgan, are keeping prices artificially low.

The US regulator, the Commodity Futures Trading Commission, announced in September 2008 that it was investigating complaints of misconduct in the silver market, although it did not name specific entities.

However, JPMorgan said in a statement: “It is absolutely incorrect to say or imply that the Nymex, CFTC or any other exchange or regulator has instructed or asked us to reduce our position.” The bank declined to comment on whether it had reduced its position in the silver market.

 

[william the wie]

A lot of silver upside remains but the naked short myth will keep on keeping on.

 

[KissMy]

Credit Default Swap Spreads…..5 U.S. States Make The Top Ten List

This tells us that the rise in bond prices is not due to an expanding economy but due to fear of default on bonds.

 

[Toro]

Both gold and silver pulled back today. Both are sitting on support, with gold at $1380 and silver at $28.75 at the 4pm stock market close. Next support levels for gold are $1370 and $1355. For silver, support is at $28 and $27.50. Breaks below those levels could signal a significant decline.

Weakness was attributed to dollar strength, as currency traders bought dollars in part due to a potential downgrade of Spain and spiking US interest rates. The 10 year Treasury bond is yielding 3.53% compared to 2.80% at the end of November, a violent move in the bond market. The precious metals also sold off in sympathy with a general sell-off in risk assets. Stocks are extended and are due for a rest but momentum remains strong.

 

[william the wie]

Both gold and silver pulled back today. Both are sitting on support, with gold at $1380 and silver at $28.75 at the 4pm stock market close. Next support levels for gold are $1370 and $1355. For silver, support is at $28 and $27.50. Breaks below those levels could signal a significant decline.

Weakness was attributed to dollar strength, as currency traders bought dollars in part due to a potential downgrade of Spain and spiking US interest rates. The 10 year Treasury bond is yielding 3.53% compared to 2.80% at the end of November, a violent move in the bond market. The precious metals also sold off in sympathy with a general sell-off in risk assets. Stocks are extended and are due for a rest but momentum remains strong.

The ten year treasury dropped close to 20% in less than a month and the MSM generally ignores it? That is really strange.

 

[Toro]

Both gold and silver pulled back today. Both are sitting on support, with gold at $1380 and silver at $28.75 at the 4pm stock market close. Next support levels for gold are $1370 and $1355. For silver, support is at $28 and $27.50. Breaks below those levels could signal a significant decline.

Weakness was attributed to dollar strength, as currency traders bought dollars in part due to a potential downgrade of Spain and spiking US interest rates. The 10 year Treasury bond is yielding 3.53% compared to 2.80% at the end of November, a violent move in the bond market. The precious metals also sold off in sympathy with a general sell-off in risk assets. Stocks are extended and are due for a rest but momentum remains strong.

The ten year treasury dropped close to 20% in less than a month and the MSM generally ignores it? That is really strange.

Meh.

As a bond trader once told me "Nobody gives a shit about the bond market."

 

[william the wie]

That is flat-out crazy.

 

[Toro]

I liquidated my long positions in both gold and silver that I re-established earlier in the week today. I hate trading in and out of positions so quickly, but gold broke through its first and second levels of support at $1380 and $1370, while silver broke through its first level of support at $29. There is support for gold at $1355 and for silver at $27.50. I want to see more strength before re-establishing positions. I see silver as being clearer technically. Ideally, I would like to see some backing and filling going on, with silver holding support at $27.50 and $28 while approaching new highs.

 

[william the wie]

I still think gold belong in an asset allocation portfolio but to each their own.