The Gold and Silver Thread

[Toro]

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

I trade it with big positions, so I have to protect myself. I think it will eventually go higher. If it hits my criteria, I will buy it back.

 

[william the wie]

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

I trade it with big positions, so I have to protect myself. I think it will eventually go higher. If it hits my criteria, I will buy it back.

Just a question not a judgment but why do so few hedge funds simply hedge their positions and instead try to outsmart people with Math Ph.D.s from MIT by trading? I mean even if you are a math ph.d. do you really make a profit after anguish and aggravation by trading?

 

[Toro]

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

I trade it with big positions, so I have to protect myself. I think it will eventually go higher. If it hits my criteria, I will buy it back.

Just a question not a judgment but why do so few hedge funds simply hedge their positions and instead try to outsmart people with Math Ph.D.s from MIT by trading? I mean even if you are a math ph.d. do you really make a profit after anguish and aggravation by trading?

Hubris and money.

Plus, I'm not convinced the math PhDs are necessarily better than the traders.

 

[william the wie]

OK, I asked you answered.

 

[Toro]

Interesting action today. Gold bounced off the 50 day moving average while silver is forming a noticeable triangle pattern. There is still deterioration in the technicals, as MACD and RSI are forming lower highs, and gold is sitting off the hard sell-off over the past two days.

However, the ETFs are seeing selling in the morning and strength into the close, which is often a good sign.

 

[FireFly]

US Bonds are nearing a downgrade, rates are climbing & US Bond CDS are widening.

[ame="http://www.youtube.com/watch?v=hTWLEhlq1cQ"]Sure - It Will Never Happen Here[/ame]

The only question here is who can possibly bail out the USA?

 

[william the wie]

US Bonds are nearing a downgrade, rates are climbing & US Bond CDS are widening.

Sure - It Will Never Happen Here

The only question here is who can possibly bail out the USA?

The short answer is nobody.

 

[liebuster]

The only question here is who can possibly bail out the USA?

I would bet that it would be a new global order with a new monetary system created by the IMF. I would presume that the new currency would be partially backed by gold or silver so they can say , "Don't worry everyone, this currency is partially backed by gold, so it must be safe. Just sign right here on the dotted line and we can get past this awful experience."

Sorry for the thread drift......

 

[LordBrownTrout]

Gold to Go


Photoblog - Coin-op goldmine in Florida

Imagine someone watching you pay for a gold bar in the mall and then carrying it out to your car.

 

[LordBrownTrout]

Toro, what types of purchases do you make on precious metals? I bought some more junk 90 percent coins a week ago when silver fell to high 25's. I always take possession of it.

Wise decision.

The percentage of your cash you keep in this form depends, I suppose, on your confidence levels.

What percent over spot price are you paying for this junk coin?

I do this because I'm just afraid of silver certificate paper receipts. I've read of shortages and derivatives in the silver market along with supposed writers of these receipts unable to produce the tangible metal. That scares the hell out me so I always take possession. I don't mind junk coins too much. My two bags, 715 oz, I paid about a 1.50 over spot. That was back at about 8.50 trading. I paid 10 dollars an ounce. Last week, I checked out five dealers in the area and most were paying between 2-4 dollars under trade value. One dealer offered me 27 an ounce when it was trading at 29 an ounce.

 

[FireFly]

I am in Florida for the holidays & will be heading to Boca Raton to buy gold from the first gold vending ATM in the USA that was just installes a couple of days ago.

 

[Toro]

I've started scaling back into my silver positions in anticipation of a break-out above $30. However, it is a small position and I will dump it if I'm wrong. I will add to the position on strength.

 

[Paulie]

Gold to Go


Photoblog - Coin-op goldmine in Florida

Imagine someone watching you pay for a gold bar in the mall and then carrying it out to your car.

Imagine someone getting my .45 pointed back in their face if they tried to get cute.

 

[Paulie]

Toro, what types of purchases do you make on precious metals? I bought some more junk 90 percent coins a week ago when silver fell to high 25's. I always take possession of it.

Wise decision.

The percentage of your cash you keep in this form depends, I suppose, on your confidence levels.

What percent over spot price are you paying for this junk coin?

I do this because I'm just afraid of silver certificate paper receipts. I've read of shortages and derivatives in the silver market along with supposed writers of these receipts unable to produce the tangible metal. That scares the hell out me so I always take possession. I don't mind junk coins too much. My two bags, 715 oz, I paid about a 1.50 over spot. That was back at about 8.50 trading. I paid 10 dollars an ounce. Last week, I checked out five dealers in the area and most were paying between 2-4 dollars under trade value. One dealer offered me 27 an ounce when it was trading at 29 an ounce.

Don't sell your metals back to dealers. With that much money invested in it, YOU be the dealer.

People will pay YOU the premium.

 

[LordBrownTrout]

Gold to Go


Photoblog - Coin-op goldmine in Florida

Imagine someone watching you pay for a gold bar in the mall and then carrying it out to your car.

Imagine someone getting my .45 pointed back in their face if they tried to get cute.

I like your thinking.

 

[miller]

Now what do we do? Screwed Again

 

[LordBrownTrout]

Now what do we do? Screwed Again

That blog has no mention on how I can make more money on silver. I'm just trying to cut a little sliver of the pie so I can get away from politicians and society.

 

[Toro]

Gold and silver are tracing out remarkably clear flag patterns. However, the internals for both are awful, with both MACD and RSI making lower highs and lower lows. The trend for gold is still in tact but silver has broken its uptrend. The next few weeks are going to be interesting.

 

[Toro]

Silver closed at a multi-decade high, and above the technically important $30 level. Silver did not close at an intra-day high, however, but was not far away. Both gold and silver have broken out of near-term ranges and a large flag pattern is clearly in place. Ideally, we would like to see some backing and filling for the next few months. Gold’s flag pattern extends to March with resistance at the $1425 level. Resistance for silver is $30.75, the old high, with the range lasting until mid-February. A break above both levels would be bullish. The caveats are that the internals of the precious metals look horrible. MACD is seeing lower highs and lower lows. This does not mean both can’t go higher but momentum has definitely slowed. Also, there has been heavy selling on down days, implying that both gold and silver are under distribution.

There is a melt-up in general occurring in commodities. Copper hit an all-time high today. Corn and soybeans hit a multi-year high. Sugar hit a multi-decade high. This has the feel of a move that will ultimately end badly. It feels very frothy, as if hedge funds are pushing the contracts higher on thin volume into the end of the year. The dollar has held in, reversing strongly intra-day, which is ultimately bullish for the dollar. Also, China appears to be rolling over.

I have taken a position in oil. Oil has also hit a multi-year high but the move had been more measured and contained. If I think I’m wrong, I will blow my position out quickly.

 

[LordBrownTrout]

Thanks for the report, Toro. When you mention internals of metals, what specifically are you referring to and does that include silver? I can't move quickly like you can mainly because I'm ignorant of subject matter when it comes to trading and I'm working on two private companies. Just now got my head into the game on the social networking internet business type company. I read where the groupon founder, started his little social foray two years ago, turned down a 6Billion dollar offer from Google.

I'm considering buying more junk silver if it comes down in the 22 dollar range however, I'm looking more at long term investment and selling at much higher levels. That may be a couple of more years down the road though.