Saturday, September 18, 2010

Inflation - Time to Seriously Think About Gold and Silver Investments

Mainly because gold has recently 'broken out' over the 1265ish level it has attacked three times prior and been turned away. If it's not a fake breakout, and it doesn't appear to be, then gold is going higher.

Silver has also had quite a move recently. Historically, silver is very low priced compared to gold, indicating that silver needs to rise or gold needs to fall to revert to historic norms. I don't believe gold is going to fall with all the money printing that has occurred and will occur as the economy gets worse. Mortgage rate resets and their associated repo's are going to accelerate through 2011.

I'm not going to put in a bunch of charts or 8X10 glossies to try to make a case, because no one is going to start investing in Gold based on this post. But if you're thinking about it, consider this just one more light in the forest. Minyanville is also a good source of all over market info. It's on my right sidebar as Good Info Yo.

I personally have been trading GSS and UXG as both junior gold miners have good track records for performance and stock price action. I know other people are buying physical gold and silver. One thought to consider on silver is buying poor condition silver coins just for the silver content value. Though 'collectibles' are taxed at a higher rate when you sell, which is why I do the junior gold miners. Gold investments all move like a school of fish, so whether you have coins or gold miner stocks, you're making money when it goes up.

Well, Finally on the subject....


Notice all the Freemason symbols in the video..

Oh, and contrary to some blowhards spouting off, gold is No Where near being in a bubble yet. Bubbles look like Mt Everest on a chart. Gold charts still only look like the foothills, even when compared to its rise in the late 70's that Jackie Onassis famously got rich on.

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20 comments :

  1. Hey Kid - In the 80's my Pops invested in an Alaska Gold Mine. Pops can laugh at that experience now but it wasn't funny while he was invested. Pops would get letter's to the effect that "the mine was close to striking gold" "the mine needed some more money because it was so close to hitting the mother lode" and on and on.... I wish Pops had hit it big. I'm like the Old West - all my gold is in my my teeth - Gold Finger, 70's James Bond right?

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  2. DeanO, Yes, James Bond, Goldfinger.

    1964. :)

    Well, the miners I'm invested in have working mines, and have been consistently processing gold for a good while now.

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  3. Gold's like every other investment: a little taste never hurt anyone.

    If you want to cash out and put every last dime into gold, then just remember: when folks bought gold in 1980 at $850/oz, a few years later it was worth $323/oz.

    Oh, that's just dumb ol' Fredd spoutin' his nonsense, that could never happen again.

    Oh, yeah?

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  4. Good advice Fredd. I will say in 1980 dollars, we are no where near 850.

    Plus you gotta play it close to the chest. Buy and hold doesn't work lately, and you don't put all your eggs in one basket, etc.

    Personally, I have enough experience trading now that I'm not going to get slammed. I'll stop myself out and go into capital preservation mode.

    Opportunities are made up easier than losses as they say. But you do have to know what you're doing. Trade with emotion and they'll eat you alive.

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  5. Mr Lonely, Good luck to you, I'll check you out from time to time.

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  6. I could look it up - however--

    what do GSS and UXG stand for?

    If I have a weak area-it is economics...I know the basics-don't buy more than you can afford -pay your debts-
    Although-I am finding - that people like Trump owe (leveraged is the word --I think) so much that they will not be allowed to fail..Hmmmm
    carol-CS

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  7. hey Kid..I just sold some gold today..lol

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  8. Woman, I'm sure you got more than you paid for it :)

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  9. Carol-CS,

    UXG and GSS are stock ticker symbols.

    Here is the information about the companies

    US Gold

    Golden Star Resources

    Chart UXG

    Chart GSS

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  10. Carol-CS, Too big to fail. Yea, Most of Wall Street and the Banks got "Do Overs" with Ben and Hanky giving them over 30 trillion dollars in the form of buying their essentially worthless mortgage paper.

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  11. Hi Kid, thanks for the tips! People should have both. If the sh&t really hits the fan, silver would be good for bartering, small coins.

    You know all the vultures are preying on people to SELL THEIR GOLD, "bring it in to a jewelry store", there are SO MANY newspaper adds, much more in the Tribune than even 6 months ago. Vultures, preying on all the poor people who think grandma's ring or chain will get them something. Better to hang on to your jewelry incase you have to barter it when things turn REALLY ugly.

    Good catch about all the symbolism in the video.
    I hope your weekend was nice.

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  12. Bunni, Thank you and thank you.

    As Fredd says, don't put all your eggs unless you're nuts like me.
    But yes, when business people are buying it hand over fist, there is a reason.

    It will turn someday but not anytime soon imho.

    We have a chick at work who actually packed up her gold and sent it to those dudes who advertise to send it to them and they'll send you a check. She got some cash, but no idea how close she got to the price of gold. I'm guessing not much !

    It was a good weekend here. Long walks with Webster.

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  13. WWII was so bad in the EU that people were trading ounces of gold for sacks of potatoes.
    That is an old trick; drive the price of gold up-then cause a war or some hardship, and drive the price of gold down to nearly to nothing.
    OORRRRR do what the Federal Reserve did; Demand that the President or Leader of the country confiscate, all of the publics private gold.
    Trick: get the people to spend all their money/retirement on gold, then drive down the price and or confiscate the people's gold.
    Nothing new, has happened all through History. When a leader wants to rule the world-as they see it (even if just their geographical home area, their little corner of the world-'tis the world to them).
    A friend and I have been discussing the confiscation method for a couple of years now.

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  14. They Say, Yes, that's why I play it very close to the chest.

    Confiscation is not out of the question.

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  15. I wish I knew more about investing than I do, but I'm a poor dude who lives just above paycheck to paycheck and I'm glad just to have enough back to fix a blown tire or a busted alternator if need be.

    A few years back, I sold a Krugerrand my grandfather had given me. I got about $375 for it... this was in about 2004 maybe? I was messed up and needed the cash to pay the rent.

    Man, if I had only been as together then as I am now.

    But.. at least now I understand the market a little better, and kinda have seen some of what drives it...

    So about 20 ir so years from now, as the cycles go... the next time we have a Marxist in the White House... I'm a buyin' early and often!!

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  16. Soloman, it's all about the devaluation of the dollar. Those are long cycles.

    Could be 30 years :)

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  17. They Say, yes, I saw that. No doubt the gov will try to get in on the action.

    And if things get bad enough, even go the confiscation route. Why did the country not revolt when they did that the first time ?

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  18. They were scared and trusted the Gov.
    Remember they shot the WW1 Vets for protesting.
    I know it don't makes sense but different times.

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