GOLD $2500.?.............SILVER $100 ?
Bear
Posts: 18,953 ✭✭✭
How many times have we read this nonsense. Precious Metals do in fact
have a place in a prudent diversified investment program. Except for truly
talented traders, it is not a one way street to wealth. Rather PMs are an attempt
to protect a store of value in difficult time. At any given time, this may not be true,
but over a prolonged period of time it tends to do its job very well.
The hype is very similar to the big bull market in Morgan dollars years ago. They went sky high
with common dates selling for $1000 in MS-65 and they were scarce at that price as people
hoarded them. The pundits touted them as the nirvana to untold wealth in a one way road to
the stars. It is a little like the story of the hare and the turtle. Slow and steady wins the game
hot flashy characters come and go and are soon forgotten. Unfortunately, these creeps take a
lot of good people down with them.
If one recognizes the purpose of PMs ,as well as the investment limitations of quality, properly
priced rare coins, collected with care and held for a reasonable period of time, then you will enjoy
the fruits of your labor as well as the pride of ownership of some truly neat collectables and metals.
have a place in a prudent diversified investment program. Except for truly
talented traders, it is not a one way street to wealth. Rather PMs are an attempt
to protect a store of value in difficult time. At any given time, this may not be true,
but over a prolonged period of time it tends to do its job very well.
The hype is very similar to the big bull market in Morgan dollars years ago. They went sky high
with common dates selling for $1000 in MS-65 and they were scarce at that price as people
hoarded them. The pundits touted them as the nirvana to untold wealth in a one way road to
the stars. It is a little like the story of the hare and the turtle. Slow and steady wins the game
hot flashy characters come and go and are soon forgotten. Unfortunately, these creeps take a
lot of good people down with them.
If one recognizes the purpose of PMs ,as well as the investment limitations of quality, properly
priced rare coins, collected with care and held for a reasonable period of time, then you will enjoy
the fruits of your labor as well as the pride of ownership of some truly neat collectables and metals.
There once was a place called
Camelot
Camelot
1
Comments
Wise Old Bear....................
K
What to do! What to do!
Oh, right. Buy more.
It is nice of you to attempt to talk sense to the board. But do your words actually have influence over the panicked?
Ah, well. At least I listen. And then I post some cr@p. +1.
Fred, Las Vegas, NV
If you believe the currency (dollar index) is going up, you want more dollars. If you think it is going down, you want more PM's.
The US is currently facing a decreasing GDP and increasing money supply at record a rates. This is a recipe for a falling dollar index. Thus it makes sense to prefer PM's vs. a standard savings account.
deficit (without the benefit of smoke and mirrors)
then I'll start to worry about the future of the PM bull market.
...
"Anyone want to sell me some gold at $750? "
I'll take silver at $12 all day long.
I sincerely believe that $2500 gold and $100 silver is not nonsense.
These prices (and perhaps higher) will be attained at the peak of the PM bull cycle. How long they stay up there (1 hour; 1 day or perhaps 2 months) is anybody's guess. But looking back at 1980, I'm convinced this will happen.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
I don't think that putting our financial system in high-tech mode was such a good idea. At some point, something's gotta be real.
I knew it would happen.
<< <i>...
I don't think that putting our financial system in high-tech mode was such a good idea. At some point, something's gotta be real. >>
I like your sentiment - It's starting to feel like a case of "All of the people some of the time"
And time is running out.
...
I do not believe I said said that gold or silver could
not eventually reach the august levels mentions.
I merely said that hypsters are repugnant
and detrimental to the well being of
average folks. If we take inflation into account, the
2500 gold and 100 silver are very possible at sometime
in the future, just not in the immediate future.
Camelot
......and almost 18 years later we have ..... !!!
COPPER is gutter !
.....liftoff
When gold and silver move together, it signals the coming end of fiat money.
BOA says that fundamentally silver should be closer to $60 (I agree)....but that retail and speculative flows could drive it to $170 by end-2027.
.....liftoff> @GoldFinger1969 said:
maybe that's why they made the mistake of going short.
When gold and silver move together, it signals the coming end of fiat money.
Wow ,think I read this post long ago. How time fly's.
They didn't make the mistake of going short.
Someone still is. UBS?
I knew it would happen.
All those predicting silver and gold going to the moon are finally feeling vindicated, I never did. Back years ago people would say that you wouldn't want to live in a society with these types of precious metals prices because they'd be indicative of crisis in the currency, etc.. Also I used to hear that the tax authorities would enact new laws to target windfall profits. That doesn't seem to have happened yet.
A sell-side analysts position is NOT the same as the trading account or capital account of a BD. Do you really think an owner/operator or big public firm would risk their capital on some 27-year old MBA making his first recommendations ?
If ZeroHedge or othter "sources" have some names, publish them and we can discuss. But I don't care if UBS or BOA say gold and silver are going to $3,000 and $40, respectively...that's an investment recommendation, not how their own $$$ is positioned.
They even tell you in the 4 pages of disclosures on the sell-side research.
A sell-side analysts position is NOT the same as the trading account or capital account of a BD. Do you really think an owner/operator or big public firm would risk their capital on some 27-year old MBA making his first recommendations ?
I'm sure that a 27-year old isn't calling the shots. That doesn't mean that several European banks haven't been involved in price suppression that is now coming down on their heads.
If ZeroHedge or othter "sources" have some names, publish them and we can discuss.
I've listed my sources more than once, and there are a bunch of them. If you chose not to investigate, that's on you.
I knew it would happen.
.
They do it all the time.
"Rogue Traders" is a recurring theme, but I think they were just bets gone bad.
.
Did you mean "Rogue"? Rouge is a red color.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Them too.