Wednesday, March 18, 2009

Gold and Silver

"Buy gold & silver" commercials and infomercials are everywhere.

Somebody is selling.


  1. I continue to see two page ads in a local paper offering a free delivered armor safe with a purchase of "4100 coins." Also touting gold as an investment that will continue to increase in price well into the future.

    Now, why would they be doing this if gold is going to $2,500/oz.?

    Oh yeah, because gold prices are about to get wrecked.

  2. Gold is like any other product, people. It is produced and sold. In gold's case,resold and resold. Gold resellers are like realtors: they get their % regardless of the direction of price movements. It's the hoarders, like me, that are in it for the long term. I buy on dips, keeping a small % of my assets in it, just in case.

  3. I an 5% total portfolio shorting silver and gold with deep out of the money 9 month puts...

    I really hope we are right


  4. Fdr, what would be our plan B fir tomorrow. Should we stay on a short position and go against the wind or we must exit now?

    I remember you saying no guts no glory but I really think this is taking us down into hell.

  5. My largest position is short silver, followed closely by short gold.

    As I've said repeatedly, I'm not worried about it at all.

  6. I just sold my SLV position that I've held in my IRA for 6 months. Netted about 5% on it.

    I would normally expect gold and silver to fall as well, for the same reasons you guys put forth, but now that I've exited my position, it has to go up a lot, just to punish me for exiting when I did! :-D

  7. there are 'cash for gold' xxxxercials everywhere too. the market can stay irrational longer than you can stay solvent. check out the manipulation in the comex markets and then imagine those shorts being removed--one more time into the bubble, my friends?

  8. Hi Fdr,

    Monetary base is exploding...printing money like mad...Should be good for gold..



    Great chart Bf, it shows how amazingly impotent (no r or a) the Federal Reserve really is. The only thing they do really well is steal.

    In 120% panic mode, the Fed has only been able to scrape together a few hundred billion 1:1 bucks. JPM, alone, conjured up $35T in boom time cash.

  10. I'm still going to hedge 50/50 cash/gold. Goldbugs and anti-goldbugs are fruitloops. One says gold to multi-thousands; the other has been betting on the gold bubble popping since '05. Whatever.

    The thing many anti-goldbugs are assuming is the dollar will be a viable currency in the future. My in-laws woke up one morning to discover the Ruble was null and void. I don't see it too out there to consider the same might happen here.

    So what if there alot of gold commercials: there are alot of people out of work who need money, with alot of jewelry on hand. Easy way to make a buck, like the payday loan biz's.


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