The Gold and Silver Thread

[william the wie]

Lead is more useful than silver, especially in hard times.

Mexico has too much Silver, I would worry that it all gets dumped on the market at once, Silver will lose its value the fastest, I cannot see Silver as a good investment.

Lead though, maybe copper, seeds, grain, water purifiers.

Silver (inventory) stocks have been shrinking for decades. Uses of silver have been increasing particularly in electronics. Lead being poisonous is seeing its industrial uses shrink.

 

[Terral]

Hi mdn:

Lead is more useful than silver, especially in hard times.

Mexico has too much Silver, I would worry that it all gets dumped on the market at once, Silver will lose its value the fastest, I cannot see Silver as a good investment.

Lead though, maybe copper, seeds, grain, water purifiers.

Mdn is bringing up some very good points. Let us take a look at my Survival List from that topic:

Surviving The Economic Collapse

Travel Trailer w/solar power system
4-man tent
2-man tent
Sleeping bags
Topper for truck
Generator
Chainsaw
Ax, Hatchet, Post-hole diggers
A/C/C Battery Recharge Kit
2-way radios
Compass
carry-shovel
wind-up emergency radio/flashlight
Survival Seeds
Critter traps = Havahart = Home Depot
Vacuum Food System
Rubbermaid Containers
Rice food stocks (vacuum packed)
Dry Bean/pea food stocks (vacuum packed)
Rifle, shotgun, handgun, ammo
Fishing rods/reels/tackle supplies
Crab/bush-hook line
Assorted machete/knives
Folding chairs
Folding table
Gas tanks
Water storage containers
Water purification system
Mountain bike

I have already purchased most of these things and the mountain bike is in storage as we speak. The animal traps have been spray-painted and the beans and rice are all happy in their vacuum-packed bags. I have more lead in .308 rifle and double-0 buckshot and .38 and .357 ammo than can be carried. After all, ammunition will be in very short supply after the crash and a box of shells might be worth more than the same amount of silver.

The question is not whether lead is better or worse then silver, but rather whether I want to hold onto fiat fed dollars that are depreciating fast OR silver @ 28 bucks that is predicted to go to 100 and 250 and 500 bucks by professing experts. Hmmmm ... decisions, decisions. ;0) After all, this guy might be right ...

[ame=http://www.youtube.com/watch?v=T3PsRSt9Ays]Pole Shift - Dollar Inflation[/ame]

... or his calculations might be off. Either way, wisdom says to hope for the very best while preparing for the worst-case scenario.

GL,

Terral

 

[Terral]

Hi all:

Imagine buying silver for 30 bucks per ounce and selling for 500 dollars.

[ame=http://www.youtube.com/watch?v=Qi8fV8n_UBM]$5000 Gold And $500 Silver[/ame]

GL,

Terral

 

[william the wie]

The rule of thumb is that when the Dow reaches an ounce of gold go long LEAP calls on the index and get out of gold, which may still go up but not as fast as the big stocks.

 

[Terral]

Greetings to All:

The time is running out to get silver around 30 bucks:

[ame=http://www.youtube.com/watch?v=pfM43DCZ0io]Silver Update Extreme Backwardation[/ame]

You guys had better listen to the dog, because the day is coming when prices go sky high and you cannot find silver to buy anywhere.

GL,

Terral

 

[Mini 14]

I started betting on silver at $5. Far better investment than gold, IMO, and a no-brainer going forward.

I have around $5,000 face of 90% US coinage for barter, but the majority of mine is bars and Eagles.

If you aren't holding it, it is no different than buying MSFT, KO, or F.

 

[Terral]

Hi Mini:

I started betting on silver at $5. Far better investment than gold, IMO, and a no-brainer going forward.

I have around $5,000 face of 90% US coinage for barter, but the majority of mine is bars and Eagles.

If you aren't holding it, it is no different than buying MSFT, KO, or F.

You are very wise indeed. Just for the record, silver is trying to break through the 30-dollar threshold right now as we speak (check) and is up about 75 cents, with gold up 17 bucks. I am still hoping for one last dip near 26 bucks, but the world is catching on that the fiat money system is collapsing under too much debt. JP Morgan and the Banksters are having trouble keeping the paper price of silver connected to the real commodity, and when that decoupling manifests itself fully, then silver prices will go through the roof and you will not see 30 dollar silver again IMHO.

[ame="http://www.youtube.com/watch?v=duRN9e-3o6g"]Severe Silver Shortage Should Start Soon[/ame]

GL,

Terral

 

[KissMy]

J.P. Morgan Will Accept Gold as Collateral

J.P. Morgan Chase & Co. said it will allow clients to use the metal as collateral in some transactions. For example, a hedge fund wanting to borrow money for a short period can put up gold as collateral and use the borrowings to invest elsewhere, betting on making a better return. Typically, banks accept only Treasury bonds and stocks in such agreements.

By making the announcement, J.P. Morgan is effectively saying gold is as rock solid an investment as triple-A rated Treasurys, adding to a movement that places gold at the top tier of asset classes. It also is trying to capitalize on all the gold now owned by hedge funds and private investors that is sitting idle in warehouses.

"It's solidifying a trend that gold is re-establishing its role as a monetary and financial asset,"

Firm urged hedge against state bonds it helped sell

Goldman, Sachs & Co. urged some of its big clients to place investment bets against California bonds this year despite having collected millions of dollars in fees to help the state sell some of those same bonds.

The giant investment firm did not inform the office of California Treasurer Bill Lockyer that it was proposing a way for investment clients to profit from California's deepening financial misery. In Sacramento, officials said they were concerned that Goldman's strategy could raise the interest rate the state would have to pay to borrow money, thus harming taxpayers.

The Congressional Show-Trial Of Meredith Whitney Begins Tomorrow

Ms. Whitney has declined an invitation to appear before the panel of the House Oversight and Government Reform. But the subcommittee’s chairman, Representative Patrick T. McHenry, Republican of North Carolina, said that would not dissuade him from investigating her record.

“This isn’t a gotcha thing, but she’s going to be part of the hearing, whether or not she participates,” he said. “If she doesn’t want to come forward in a venue like this, that makes a statement.”

Yes, that's not ominous or anything.

If speaking the truth is considered treason, what kind of nation are we?

 

[LordBrownTrout]

Shhhhhhhhhhhhhhhhhhhhhhhhh, dont scare it!!!!!!!!!!!!

 

[waltky]

At the boarding house where I lived...
things were getting very old...
long grey hairs were in the butter...
silver threads among the gold.

When the hog died we had sausage...
when the cat died - catnip tea...
when the landlord died I left there...
spare ribs were too much for me.

 

[Toro]

Both gold and silver are at an interesting juncture here. Silver is running up into resistance where it could not break through a few months ago. Gold appears to have put in a near-term bottom but will run into the same issue another $40 higher.

The fundamentals are working against the precious metals. Interest rates have spiked hard over the past several days, the dollar is trying to stabilize while stocks are moving higher as the market prices in faster economic growth. One would think precious metals would pull back in these conditions, but this has been a powerful bull market, and any move to new highs during deteriorating conditions for the precious metals would be a sign of strength.

 

[sparky]

so if we can assume the value of earthy commodities ,gold, silver, copper , etc are inversly proportional to the dollar's standing in the world fiat, what happens if China edges us out ?

 

[Terral]

Greetings to All:

[ame="http://www.youtube.com/watch?v=16GRfXF0UtU"]JP Morgan Has A Big Problem[/ame]

All the precious metals on the Monex Board (check) are pushing down right now as the world is deluded into run after worthless fiat dollars. This might be the start of the final dip before the massive parabolic run up that many anticipate when the dollar crashes. I am hoping that silver goes down near $25 one last time for a final purchase before the crap hits the fan. ;0)

GL,

Terral

 

[KissMy]

Reuters: Some States Worse Than European Sovereigns

U.S. states' fiscal problems may be worse than European countries such as Greece and Portugal. While the states debt to GDP ratios are not nearly as elevated as those of European sovereigns, and they aren't as likely to default, their finances look worse based on other metrics.

When looking at budget deficits to revenues, both Illinois and New Jersey are in worse shape than even Greece and Portugal, but not as bad as Ireland. When examining the ratio of how much money certain states need to borrow vs. their outstanding debt, Illinois and Pennsylvania far outpace Spain, Portugal, and Greece - not a good sign. This could become a particularly severe problem if interest rates rise too fast and states are unable to sell debt.

As a result of the fiscal problems being encountered by states such as Illinois, California and New Jersey, many states are facing significant spending cuts and some analysts believe that it is just a matter of time before a wave of defaults hit municipal bonds. Investors have been pulling out of municipal bonds in droves, which in turn, drives up interest rates in the space.

Meredith Whitney is going to be vindicated with her report of the Tragedy of the Commons. As senator, Obama left Illinois in shambles. Now as president Obama's budget is doing the same to the USA. The correction in Gold, Silver & other commodities is over. This new budget disaster will eventually send commodities to new highs.

Whitney Muni Bond Forecast 'An Important Call': Jim Chanos

Jim Chanos, of Kynikos Associates, said that he agrees at least in principle that the state of municipal finance is poor and not a good bet for investors. "I think her general sense was correct," he said. "You weren't getting compensated for the risk as an investor and that's an important call and that's something people need to hear from time to time."

Chanos compared the municipal debt situation to the mortgage industry, when subprime loans given to high-risk borrowers were hit with waves of defaults that ultimately brought down the financial services industry and required a government bailout.

"Municipal bonds are basically special funding entities where we were setting up a stadium or a hospital or a water plant, whatever, and it's done under the rubric of tax-exempt law," he said. "They're set up specifically that if the project doesn't work it doesn't imperil everything else. You think people are reading the financials of that water plant? I doubt it. They're depending on ratings agencies just like they did in the good old days of mortgage financing."

While the government bailed out the banks, it may not be so forgiving when it comes to local governments, Chanos added.

"Even Warren Buffett said to be long the muni bond industry in effect you have to bet on a federal bailout, and I'm not so sure that with the politics in Washington now that that's the smartest bet in the world given you'll only be earning 3 or 4 percent," he said.

 

[sparky]

to my knowledge, the munibond market is in the 2Trillion $$$ range, maybe the tax exempt status makeds it attractive, i really don't know......

But the interesting legislation occuring to 'help' those states in the red (notably California) by allowing them to declare bankrupcy directly confronts munibonds ratings

Now everyone thinks sewer plants, or whatever municipal infastructure being bonded, but isn't the largest recipent the municipal retirees , most of which are unionized, along with pensions?

imho, this smells of union busting cloaked in the guise of helpy helperton bankrupcy legislation .....

 

[KissMy]

France wants new global finance system

France will help the transition to a global financial system based on 'several international currencies', the French Economy Minister said today.

France, as current head of the Group of 20 countries, will help the transition to a global financial system based on 'several international currencies', French Economy Minister Christine Lagarde said today...

France has previously said it wanted to see the global financial system reduce its reliance on the dollar for a more broad-based arrangement.

 

[Mini 14]

Silver headed to $32 today?

And gold over $1400 again?

 

[LordBrownTrout]

Cotton prices, food, ......soaring. Here we go.

 

[william the wie]

Cotton prices, food, ......soaring. Here we go.

With stocks in a melt up, bonds crashing and real estate trying to find a bottom where but precious metals can you go?

 

[KissMy]

Cotton prices, food, ......soaring. Here we go.

With stocks in a melt up, bonds crashing and real estate trying to find a bottom where but precious metals can you go?

Crude oil is really $108 & rising. The headline shown here in the USA is $87 but that is way off the average global price. It is being manipulated by a small amount of land locked WTI crude price. This is the price that gets printed in US headlines making people here think there is no inflation. Just because a small amount of WTI crude in a storage location that is used to measure USA oil price is not currently able to get to refineries creating a small surplus pushing that small supply price down in no way represents the true market price for global oil. RBOB is the gasoline that you buy at the pump & it's price is climbing because it is made from the imported global crude oil. Corn, Beans, Fertilizer, Steel, Coal, Cotton, Copper, precious metals & nearly all transportable commodities are climbing. This will squeeze consumer staple companies profits & cause inflation.