I have posted a few times here saying that I have been doing the same thing. Buying Maples for 13 and selling on CL for $16. Bought 200 eagles for $14 and sold for $16. Quick $400 profit. But the money is going right back to buy more PM. >>
And that seems to be a superior way to go right now then simply buying and holding. having your money work for you with very little risk is an excellent move. Sticking the profits into a final horde is a person's choice. It will still be quite liquid when you plan to call on it.
I just feel the buy and hold strategy over the long term is a poor investment that gets over hyped UNLESS your timing is superb. Over the last months we were told multiple times to hang on and this is it only to find out the recession made PMs go down. Then the manipulation word came out showing that they failed to understand what happened and still do. So why in the world would one take their advice without a huge dose of skepticism is beyond me. It made sense with gold at 400-500 but not really at 800, and definitely not at 1000 once most realized it was not going to stay past it.
Maybe in time gold/silver will be in bull mode again. I just tend to agree with you that it will not be next year and it is good to be using that money to build up your stash (make profits on the metal you have).
The highest gold got to was about $1025 or so. I know the spot price is a lot lower, but try to sell any 1 ounce gold bullion coin for $1025 today and it will sell pretty easily.
The highest gold got to was about $1025 or so. I know the spot price is a lot lower, but try to sell any 1 ounce gold bullion coin for $1025 today and it will sell pretty easily. >>
I do not keep a close eye on the premiums surrounding gold but anyone paying 1025 for an average gold round is silly when there is multiple other places selling it for 100 over spot and that is on the high side.
What I do know is that the premiums for silver are dropping. Many bullion dealers are getting new stock in. There never was a shortage of metal, just a shortage of small investment sized bars/rounds for a few months.
I was thinking the party is ending soon but i am still able to make 3 dollars per ounce net on maples on ebay. Live.com discount is probably the reason. Without it, it would probably be 2ish.
The dollar's lost what? 50% since 2002? I don't see that trend turning around anytime soon, deflation notwithstanding
It may have started already. The US dollar has been falling since 1985 and is still down about 50%. All this while we have enjoyed inflation through appreciating real estate and equity prices. We are now seeing declining RE values and a stock market that may suprise many in 12-24 months. Is a shift beginning? Personally, I am starting to think so.
I think the root of the "US dollar must decline " arguement is based on the amount of debt the US holds. But what is frequently missed and as I have tried to explain many times, the value of the US dollar is relative to a basket. And you must realize that that basket is so riddled with holes, that quite frankly, I am amazed that it is still holding together. Folks, foreign economies are in MUCH more dire straights than the USA. This includes China.
I believe the rising dollar causes deflation, not that deflation causes the dollar to rise. Perhaps that is why Helicopter Ben wants to drop as many dollars as possible.
<< <i>The dollar's lost what? 50% since 2002? I don't see that trend turning around anytime soon, deflation notwithstanding
It may have started already. The US dollar has been falling since 1985 and is still down about 50%. All this while we have enjoyed inflation through appreciating real estate and equity prices. We are now seeing declining RE values and a stock market that may suprise many in 12-24 months. Is a shift beginning? Personally, I am starting to think so.
I think the root of the "US dollar must decline " arguement is based on the amount of debt the US holds. But what is frequently missed and as I have tried to explain many times, the value of the US dollar is relative to a basket. And you must realize that that basket is so riddled with holes, that quite frankly, I am amazed that it is still holding together. Folks, foreign economies are in MUCH more dire straights than the USA. This includes China.
I believe the rising dollar causes deflation, not that deflation causes the dollar to rise. Perhaps that is why Helicopter Ben wants to drop as many dollars as possible. >>
cohodk, I agree, The relative comps. of one curency to the next are very valid, but clearly overlooked by many, and the dollar strength, which started when the financial market meltdown picked up steam, is a signal of where the largest pools of money voted..... not the euro, not the pound not the peso or rubble(lol) and not even gold(which I'm not including as a currency)...it was the Yen and the Dollar and even the "PPT" and all the kings men and Goldman Sacs of the world can not manipulate the currency market for more than a few moments.....it is far too big. So maybe the PM "enthuisiasts will be right, and the dollar will weaken dramatically, but please tell me what currency over the next few years, will strenghten appreciably against the greenback?...Buehler, anyone?
The whole board is shifting. Yes, it's entirely appropriate to compare relative strengths of currencies - but it's also important to see where the greatest relative increases in money creation are taking place. Since most of the newly-created money is going into the banks with zero transparency, I defy anyone to make an assessment of who the ultimate winners will be.
Will they be the countries who are rich in natural resources? Is a country like the U.S., who had (sic) one of the most vibrant economies and which has the most to lose in fact going to lose the most? (When I say the U.S., I mean the ordinary working folks who live in the U.S., not the U.S. bankers.)
Relativism is a funny thing. It depends on where you begin, where you end up, and how the changes are measured. Bogus currency used to fund bogus social engineering is questionable at best, and has great potential to go awry, even if the manipulators were skilled and benevolent, which they might not be either.
Q: Are You Printing Money? Bernanke: Not Literally
The comparable basket of currencies theory only lasts as long as those specific currencies have value and aren't inflated away. That's the step we are currently undergoing across the board. It matters little if the US dollar is inflated away less than the Yen, Yuan, Euro, etc. Compared to gold, they are all headed to the toilet as has been the case with all currencies of the past 2000+ years. While there is no effective remedy for getting out of the derivatives scam, the bankers will inflate away in an attempt to fix it. Currencies will fall and things of true value will rise, maybe not today or next month, but soon enough.
Comments
<< <i>FC,
I have posted a few times here saying that I have been doing the same thing. Buying Maples for 13 and selling on CL for $16. Bought 200 eagles for $14 and sold for $16. Quick $400 profit. But the money is going right back to buy more PM. >>
And that seems to be a superior way to go right now then simply
buying and holding. having your money work for you with very little
risk is an excellent move. Sticking the profits into a final horde is
a person's choice. It will still be quite liquid when you plan to call on
it.
I just feel the buy and hold strategy over the long term is a poor
investment that gets over hyped UNLESS your timing is superb. Over
the last months we were told multiple times to hang on and this is
it only to find out the recession made PMs go down. Then the manipulation
word came out showing that they failed to understand what happened and still do. So why in the world would one take their advice without a huge dose of skepticism is beyond me. It made
sense with gold at 400-500 but not really at 800, and definitely not
at 1000 once most realized it was not going to stay past it.
Maybe in time gold/silver will be in bull mode again. I just tend to agree
with you that it will not be next year and it is good to be using that
money to build up your stash (make profits on the metal you have).
The highest gold got to was about $1025 or so. I know the spot price is a lot lower, but try to sell any 1 ounce gold bullion coin for $1025 today and it will sell pretty easily.
<< <i>Fc,
The highest gold got to was about $1025 or so. I know the spot price is a lot lower, but try to sell any 1 ounce gold bullion coin for $1025 today and it will sell pretty easily. >>
I do not keep a close eye on the premiums surrounding gold but
anyone paying 1025 for an average gold round is silly when there
is multiple other places selling it for 100 over spot and that is on the
high side.
What I do know is that the premiums for silver are dropping. Many
bullion dealers are getting new stock in. There never was a shortage
of metal, just a shortage of small investment sized bars/rounds
for a few months.
I was thinking the party is ending soon but i am still able to make
3 dollars per ounce net on maples on ebay. Live.com discount is
probably the reason. Without it, it would probably be 2ish.
It may have started already. The US dollar has been falling since 1985 and is still down about 50%. All this while we have enjoyed inflation through appreciating real estate and equity prices. We are now seeing declining RE values and a stock market that may suprise many in 12-24 months. Is a shift beginning? Personally, I am starting to think so.
I think the root of the "US dollar must decline " arguement is based on the amount of debt the US holds. But what is frequently missed and as I have tried to explain many times, the value of the US dollar is relative to a basket. And you must realize that that basket is so riddled with holes, that quite frankly, I am amazed that it is still holding together. Folks, foreign economies are in MUCH more dire straights than the USA. This includes China.
I believe the rising dollar causes deflation, not that deflation causes the dollar to rise. Perhaps that is why Helicopter Ben wants to drop as many dollars as possible.
Knowledge is the enemy of fear
<< <i>The dollar's lost what? 50% since 2002? I don't see that trend turning around anytime soon, deflation notwithstanding
It may have started already. The US dollar has been falling since 1985 and is still down about 50%. All this while we have enjoyed inflation through appreciating real estate and equity prices. We are now seeing declining RE values and a stock market that may suprise many in 12-24 months. Is a shift beginning? Personally, I am starting to think so.
I think the root of the "US dollar must decline " arguement is based on the amount of debt the US holds. But what is frequently missed and as I have tried to explain many times, the value of the US dollar is relative to a basket. And you must realize that that basket is so riddled with holes, that quite frankly, I am amazed that it is still holding together. Folks, foreign economies are in MUCH more dire straights than the USA. This includes China.
I believe the rising dollar causes deflation, not that deflation causes the dollar to rise. Perhaps that is why Helicopter Ben wants to drop as many dollars as possible. >>
cohodk,
I agree, The relative comps. of one curency to the next are very valid, but clearly overlooked by many, and the dollar strength, which started when the financial market meltdown picked up steam, is a signal of where the largest pools of money voted..... not the euro, not the pound not the peso or rubble(lol) and not even gold(which I'm not including as a currency)...it was the Yen and the Dollar and even the "PPT" and all the kings men and Goldman Sacs of the world can not manipulate the currency market for more than a few moments.....it is far too big. So maybe the PM "enthuisiasts will be right, and the dollar will weaken dramatically, but please tell me what currency over the next few years, will strenghten appreciably against the greenback?...Buehler, anyone?
sure you are holding all your gold and silver bags, as down
to Davey Jones we all go.
Camelot
Will they be the countries who are rich in natural resources? Is a country like the U.S., who had (sic) one of the most vibrant economies and which has the most to lose in fact going to lose the most? (When I say the U.S., I mean the ordinary working folks who live in the U.S., not the U.S. bankers.)
Relativism is a funny thing. It depends on where you begin, where you end up, and how the changes are measured. Bogus currency used to fund bogus social engineering is questionable at best, and has great potential to go awry, even if the manipulators were skilled and benevolent, which they might not be either.
I knew it would happen.
roadrunner
Gotta get my jollies where I can.
Ren