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Quarterly Review

OK, time for a quick review of things; add as you see fit.

Fannie/Freddie bail out: Will issue more loans at lower rates and guarantee all existing no-doc, subprime loans that they are holding. Should I say Duh or maybe just a quote will do "When you notice that you are in a deep hole, it's time to stop digging." This whole thing needs to be completely downsized and restructured if it is going to be anything other than a stone. The stock for freddie shows an interesting statistic...ytd high $65.00, sold yesterday for $00.65 so from 65 dollars to 65 cents and all in just a few short months...well done! I'm sure the stock holders of common stock are quite pleased with full faith strategy (not).

Paper metal v.s. real metal: It's BS and it is intended to baffle and confuse the market. Big players will eat at the trough for a little longer, little guys have been creamed into a fine liquid as they divest them selves of their hard earned PM for some FRN's. Most folk realize that there is the issue of liquidity hiding in the background, the true double edged sword; holders of PM have to maintain some liquidity and after a period of very depressed prices, they have to give it up at a loss to stay liquid. Fun game if you're a well funded big dog playing with paper. Should I say don't look behind the curtain or maybe just remember the "pigs get fed and hogs get slaughtered" quote. Cost averaging on the fall...yummy. Aooogaaa, aooogaaa, accumulate! accumulate!

Social Securit y: The proposed big cure for this situation is to be patriotic and selfless and work till you're 70. Amazing that Fred/Fan can get a bail out because they are too big to fail and social security just want's you to keep working in the place of those that won't/don't. Kind of like the Fred/Fan situation, they are not going to fix it, just guarantee it with tax payer money. Only problem with that plan is the great mullet hunt will soon be over because we're retiring, Baby!

'08 rev of '07: Hee, Hee...hey, I got some really cool, exceptionally rare stuff right here in this sack...maybe you'd like to have a look; I kind of need to raise some cash so I can let them go for really low prices compared to what you would pay on the street...here, look at this one!

Cash: Cash is king...hey, it's not new or difficult, it's the law and it has been for many many generations!

Inflation: Nah, there ain't any stinkin' inflation, here...just look at our statistics. Hey, we got some statistics for corporate growth and we got some over here for employment. It's all good. Hey, did you hear the stock market is bottomed...it's all up from here, get the wagon.

Precious Metal and Coins: You can buy coins or bars or rounds or shot or tailings or just dig up a hunk of your own or melt grannies dinnerware. Funny thing about PM, after all the news and the financial goober quotes, after all the prognosticators and BS artist, after all the paper players...after all of them have told you what they think, when you hold that metal in your hand and realize that this is the real thing then that little smile on your face is indeed precious.

MSNBC anchors: Canned...hee hee. Just goes to show that you can fool all of the people some of the time but with that strategy, time is indeed your enemy.

Oh well, just feeling frustrated by not having the normal discourse on PM and the world at large. Carol, we're dying out here...send help!

Comments

  • jmski52jmski52 Posts: 22,896 ✭✭✭✭✭
    Great Post, mhammerman!

    Indeed, holding it in your hand is better than not.image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • Gold has and continues to follow the lead dog oil. Figure out where oil is going, and odds are good that gold will follow. Historical correlation is 80% to 90% depending on the time frame looked at. In this kind of market it is best to ignore 95% of the fundamentals being written about gold. It has little to nothing to do with what is going on and will cost traders money if they take it to heart. "Funny-mentals" are often worthless for short term trading, so those with a short term focus would do well to ignore them. Instead, focus on the price action and sentiment for the short term.

    Newbies continue to buy silver like it is going out of style. Some are paying 20% to 40% premiums over spot in a fast moving market, when 3% to 10% is more typical during calm markets. As long as this classic "dumb money" continues to pile in and buy up all they can find, odds favor lower silver prices. A real bottom in silver will likely include panic selling from many of these same newbies, as they yell "get me out, at any price," dumping their haul that they bought at huge premiums for below spot. For those that disagree, let me say that this applies to all markets, not just silver. It is how markets work, always have, always will. Newbies often get crushed as they buy dips. A few lucky newbies will beat the odds and actually get in near the bottom, but the majority of newbies will SELL near the bottom. It is the way of the world.
  • BearBear Posts: 18,953 ✭✭✭
    The prices of oil, gold and silver are being manipulated

    on a massive scale. The question, is to what purpose?

    Obviously, this manipulation can only be conducted for

    a limited period of time.



    The 80 trillion dollar world wide market of derivatives is slowly

    being unwound , layer by layer like an onion. No one knows the

    actual value of these complex financial instruments and so debt

    based upon the value of these instruments is dubious at best.

    With the elimination of Fanney and Freddie as investment values

    for many regional and small banks, unintended consequences would

    indicate that many more failures are about to take place. The deposits

    of citizens in these banks are only insured up to the assets of the FDIC.

    What happens when those assets are reduced to zero.

    In the event of a massive cash run on many banks, what will be the results?



    We may well be in the eye of a massive economic storm. We continually hear

    repeated sounds of relief from talking heads, but the truth of the matter is,

    the storm is growing larger, more violent and more destructive, as we pass thru

    the eye. National debt increasing geometrically, value of what was once thought of as

    secure quasi governmental equities dropping to zero, with bank equities falling below safety

    guidelines, with foreign governments becoming increasingly unwilling to buy our debt,

    with growing inflation and declining real wage rates, with the auto industry on the

    verge of bankruptcy, with two ongoing wars ........What's to worry about.
    There once was a place called
    Camelotimage
  • fcfc Posts: 12,793 ✭✭✭
    bear if oil gold and silver are being manipulated does that mean
    every other commodity dropping just as fast is being manipulated
    also?

    it seems odd that one pulls out the manipulation card for every
    downward spiral of the price and when it goes up it is "funny mentals". no one ever manipulates the price up.. just down.

    all the charts show a sea of red when it comes to commodities for
    most trading days in the recent past (few weeks).

    but that is just me... and the way i think. a few banks make a large
    bet commodities are over priced to the moon in a bubble and due
    to fall... it must be manipulation. gambling, sometimes in large ways,
    is what some banks do for a living.
  • BearBear Posts: 18,953 ✭✭✭
    Please do not confront me with the facts.

    It tends to confuse me.image
    There once was a place called
    Camelotimage
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