Who else has more confidence this time around?

konsole

I've been stacking for a few years now and have to admit that I thought I would see much higher prices by now. Considering all of the recent events like the CFTC meeting and the Maquire story and the discovery of very little bullion in the Canadian vault, plus the strong bull run the metals have had here for the past 2 week or so. Has anyone else gained alot of confidence that this may finally be the upshot that many of us have been waiting for?

derryb

Full upshot is under controls. Keep your eye and ear on the controls. When they give out it's to the moon. Notice how metals have been doin better now that there's a lot of publicity on the CFTC mainpulation hearings?

Weiss

With regards to the amount of physical gold vs. paper trades: I think the element the alarmists are missing is that the average paper trader doesn't really care, or at least they don't seem to care, that there is less gold or silver available than paper.

How many of them would ever take possession anyway? How many pork belly traders take possession? How many coffee or cocoa or frozen orange juice traders take possession? I don't know, I'm asking.

I'm a metals addict. But if I was ever going to trade options or futures, I wouldn't take possession.

But it's not right to make money trading useless paper?

Hello? Our currency is worthless paper, as is virtually every currency in the world. It's worth is defined by what people are willing to value it at, what they're willing to trade it for. It may not be legal for the number of futures contracts to far outweigh the amount of physical metals. I don't know if that's true or not either. But even if it were true, I suspect some sort of paper trade will continue to be made, based on what a buyer and a seller agree something is worth, regardless of available commodities to back it or not back it.

People who buy and sell physical metal want an end to paper trades without sufficient metals to back them, because they think it will increase the value of their holdings. People who buy and sell paper don't give a crap--they aren't interested in the metal, they're interested in the spread.

derryb

As long as the paper is worth something they're in good shape. When the paper is seen for what it is it will be too late to dump it. Thus choose physical always over paper.

gecko109

<< <i>With regards to the amount of physical gold vs. paper trades: I think the element the alarmists are missing is that the average paper trader doesn't really care, or at least they don't seem to care, that there is less gold or silver available than paper.

How many of them would ever take possession anyway? How many pork belly traders take possession? How many coffee or cocoa or frozen orange juice traders take possession? I don't know, I'm asking.

I'm a metals addict. But if I was ever going to trade options or futures, I wouldn't take possession.

But it's not right to make money trading useless paper?

Hello? Our currency is worthless paper, as is virtually every currency in the world. It's worth is defined by what people are willing to value it at, what they're willing to trade it for. It may not be legal for the number of futures contracts to far outweigh the amount of physical metals. I don't know if that's true or not either. But even if it were true, I suspect some sort of paper trade will continue to be made, based on what a buyer and a seller agree something is worth, regardless of available commodities to back it or not back it.

People who buy and sell physical metal want an end to paper trades without sufficient metals to back them, because they think it will increase the value of their holdings. People who buy and sell paper don't give a crap--they aren't interested in the metal, they're interested in the spread. >>





Some very excellent points Weiss! However, I really feel that the next bubble to burst just may be "oversold" paper contracts. Otherwise, all thats really going on in wall street is pure gambling. Buying and selling is speculating when those goods are actually bought and sold. But "selling" something one does not even own (and probably doesnt even exist) is simply gambling. If the SEC ever does outlaw this practice (and I dont know if they ever will), physical possesion of the metals will be key. Paper trades will continue to take place, but only if there is actual product to be traded, not imaginary product. I cannot go around town writing bad checks, so why should some suit in NYC be allowed to do so on a MUCH higher level?

BigE

People do take possession of the mini contracts, these are 1000 ounce comex bars.----------------BigE

roadrunner

I've been figuring on $2200+ gold since 2004. While I thought we'd already be there by now my confidence is probably higher now than it was back then because we're about 1/2 way to that goal. The financial/banking/fiat currency system is in far worse shape today than I could have ever dreamt of back in 2004.

roadrunner

Justacommeman

I almost forgot to close an oil futures trade once on settlement day as I had a family emergency. Thank goodness I used a full service broker on this trade and he did it for me. While it might off been cool to take possession of 5,000 barrels of crude my next door neighbors would not have been pleased.

MJ

laserart

Where is the best place to buy silver?

Justacommeman

<< <i>Where is the best place to buy silver? >>


Tulving
Apmex
CNI
BST

Personally I use CNI...............MJ

secondrepublic

<< <i>Where is the best place to buy silver? >>



A good local dealer... walk-in and walk-out with the silver, no need to deal with mailing issues or costs.

OPA

It will happen when you least expect it. Most of the fortune tellers will also be wrong as to when it happens.

CaptHenway

<< <i>People do take possession of the mini contracts, these are 1000 ounce comex bars.----------------BigE >>



By odd coincidence, we bought in 1,000 oz. silver bars from two different people this week.
TD

konsole

Is there any strong evidence that points to the metals, particularly gold and silver, getting back to their $1,200/$21 and staying above it this time? I don't mind if the metals don't take their moon shot right now but I would atleast like to see them reach and maintain their recent highs.