Precious metals (Gold, Silver etc) hitting new highs.


#81

jesus housebuyer where to start with you

Gold is money Silver is money and hold their value unlike $ and euros which are being printed into oblivion. You wont get a bigger return on pms than that. Plus when you take into account how manipulated the pms market is at the moment artificially suppressing the price.

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#82

What you mean they hold their value? Silver fell 27% last week?


#83

May 7 2011 10:48AM NY Time
Bid/Ask 35.62 35.82
Low/High 33.05 36.61
Change +0.96 +2.77%
30DayChg -3.89 -9.85%
1YearChg +17.95 +101.58%


#84

Yeah, but that’s no benefit if you put your wodge in the week before last. You are essentially saying that it is a speculative market where timing matters. This is not money…


#85

No I’m not, I’m saying that short term fluctuations are not as important as the long term trend. And anyone putting their money into PM’s has been averaging in so these fluctuations are not as important to them, speculators were crushed last week, long term holders are still up over 100% in a year. The recent speculative frenzy that drove the price to the 1980 high has now corrected, that does not make this entire mutli-year bull run a speculative market.

I’m all ears as to any other ways suggestions you have of keeping your savings safe that is available to the masses.


#86

I wish I knew, but I don’t believe PMs are it.


#87

Gold bulls constantly contradict themselves with this. If gold is money (which I actually believe it is), then by definition it’s a store of value. If it’s a store of value, then a certain amount of gold should buy a certain amount of goods/services (i.e. mens suits, houses, etc.), which gold does. The problem is that you cannot be a store of value while being an investment, otherwise, you’re in the realm of speculation.

Like I said, I am on the record as owning gold. It’s purely disaster scenario hedge and I expect I have no intention of ever needing to use it. If I am lucky enough that my few ounces of gold are enough to buy me more goods and services than it did the day before, it’s through pure speculation that I, or anyone has acheived this.


#88

I agree it’s not perfect, nor is it without risk, but apart from arable land I can think of no better a solution, the purchase of arable land without incurring debt is beyond most, including me. Yes PM’s could end up being worth less than you paid for them, but FIAT could end up being worth the paper it is printed on which is practically nothing and that’s the point.

There are plenty of commodities that I’m sure will keep their value, oil for example, but storage might be a problem. PM’s provide a means of storage that not many other commodities provide without having to get involved in paper ETF’s etc

I’ve also heard fine art & wines etc being touted, sounds plausible but I’m a philistine with regards to such things so that rules them out for me.

I’d also like to add that although silver is up over 100% in nominal $ terms in the last year, it’s not up nearly that much in real terms when compared to food and energy costs. It is also not up as much in EUR terms which highlights the fact that not all FIAT currencies are equal, this just reinforces the point that PM’s are a hedge against currency fluctuations with these fluctuations being determined by the actions of politicians and central bankers, and I for one don’t want to gamble on which FIAT currency will come out of this mess better than the others or which will survive at all.


#89

#90

To take you up literally, yes Gold and Silver are indeed money. That is to say, a Gold Maple is a CAN$50 coin and a Silver Maple is a CAN$5 coin. If I owe you CAN$55 I can discharge this debt by giving you a 50 and a 5 note, or I can discharge it with one Gold and one Silver Maple. In that sense, gold and silver really are money, just not all that commonly used.

However, the bizzare thing about Gold and Silver money is that, unlike paper money where the base value is worth less than the token value, the base value is worth more than the token value.

What does this tell you? Well two things - first, gold and silver are very bad materials to use as currency because it costs more to make a coin than the coin is worth and second that whatever value is being attributed to gold and silver in the metals markets at the moment, it has little or nothing to do with the currency value of gold and silver.


#91

That says more about paper than gold or silver.

So people who make gold and sliver coins are charging less than what it actually costs to make them???


#92

I think we are back to the old analogy of are you a gambler or a profitable investor…
A gambler is someone who makes a bet to attempt to make a profit from an uncertain event…The outcome of the events are random…the gambler will not know with a high degree of accuracy if the bet will make money and how much it will make…

However a profitable investor makes a bet, he knows he has a profitable methodolgy which has being tested through time, outcome of the event is statictically measured and profit measured… The profitable investor knows if he/she sticks to the profitable methodolgy and stays disciplined he/she will make a profit consistantly…

IMHO what every Silver or Gold investor should be doing is measuring how many times before has a sell off this % amount occured, if you went long what was your % profit 6 motnhs ltr, 12 months ltr or even 3- 5 yrs ltr…
Change the % sell off amount for different % amounts and record the outcomes… now you are investing and not gambling IMHO…
JMO…


#93

Yes, it says that paper is a better form of currency because people will convert gold and silver coins out of currency and into bullion but the same will not happen with paper.

No, they are putting a face value on the coins that is less than what it costs to make them, then charging more than the face value to sell them. Not exactly viable as a currency, is it?

Also, coin makers will set their prices on an almost daily basis depending on the change in spot price of gold. How could you possibly use them as currency if the price changes twice daily? It would mean every shop has to change their prices on a daily, rather than monthly/yearly basis.


#94

You’re not making any sense there Jonny, clearly gold and silver are not active currencies at the moment and there is no point in trying to attribute those traits to them. A gold/silver standard would eliminate the problems you are referring to.

Besides, are you trying to say the value of FIAT is fixed?

We would still use paper money in a gold standard, it would just be backed by gold meaning that central banks would be more restricted. It’s not a perfect solution, but I’d trust it more that I do the current system.

What is the gold price left over from the last standard, about $40 isn’t it? That’s what you can officially still redeem an ounce of gold for. I know which I would rather have kept from that time.


#95

Hey, I’m merely replying to Lord Vader’s comment that gold and silver are money. If you agree with me that they are not, then there is no controversy.


#96

I was going to do some data analysis on Silver…

Then I saw this as a shortcut entry on my excel files…

silverprice.org/charts/history/s … _o_usd.png

One has to wonder.???

There seems to be good support@ circa $20…


#97

Hi FAUGH,

What do you think of this analysis over on FSN by Chris Puplava? He thinks silver will bottom around the 200 day MA of about $29.

financialsense.com/contribut … y-with-200


#98

The silver crash of 2011? -> martinarmstrong.org/files/Th … 6-2011.pdf


#99

Puck I find Jim analysis excellent in relation to Big Picture…

However I find his timing does be off most of the time but he tends to be right in Big Picture if given the time…

With any Analysis I go back to basics, I try to get the raw prices and take from there…
I never take anyone else analysis at face value… Learned the hard way I guess…
When you have analysts pick a particular price where it should rise and no analysis on the hit rate or the stop below the entry point then I have problems…

Puck/Anyone do you have Historical $ Raw Silver Prices…?


#100

COMEX Monopoly History: Hong Kong Mex To Debut Gold Futures in US $ May 18th

HKMex set for trading debut on May 18 with 1 kg gold futures

HONG KONG (Commodity Online): The Hong Kong Mercantile Exchange (HKMEx) has received authorisation from the Securities and Futures Commission and will make its trading debut on May 18, 2011 with the 1-kilo gold futures contract offered in US dollars with physical delivery in Hong Kong.

More here

commodityonline.com/news/HKM … 4-3-1.html