Discussion in 'Financial Cents' started by SLugomist, Nov 4, 2010.
WOW, Silver up $1.2836 today!!!
$26.351 an oz.
Looks like inflation is a comin'
Did you miss the news about the fed buying treasury bonds with 60 billion newly printed dollars (new devalued also)?
Obamy is going to save us all spending what we ain't got.
This has more to do with lawsuits against JP Morgan Chase and HSBC. Last week, two separate suits alleging market manipulation were filed by individual plaintiffs who are seeking class action status. This week, a separate suit was filed by another plaintiff under civil RICO statutes, which I find highly appropriate.
Silver is about to take off, but QE II amounts to only a 10% increase in the money supply over the next several months. That will be a factor, but these lawsuits will lead to a lot more than 10% gains.
This'll be interesting. These are powerful players being sued. Will the courts hear the case? Will the defendants pay out a significant settlement to avoid disclosure?
We should start a pool on the price of silver on Christmas day. Can we do that?
I can afford to buy a little silver at these prices. Everyone at the Federal Retard should be thrown out in the street and tired and feathered.
Now I understand why gold and silver are going through the roof today.
I had it wrong....duh, 60 year old brain malfunction. That was 600 billion dollars of virtual extra backed by nothing money instead of 60 billion.
The funny part is not that metal is increasing in value. The value is pretty constant. What's happening here is that the price is going up in concert with erosion of the dollar.
an oz is an oz, it's a direct reflection of the real value of the paper you can trade it for.
My brother thought I was crazy to buy bags at $5 an oz
Yep, that is so. Meaning that FRNS are losing value, not that metal is gaining. Every time the Fed adds "liquidity", metal goes up in price, partially due demand from those that think it's a safe place to put excess money, but mostly to inflation. Hold it as long as you think prudent, but when the bottom drops out as is feared, unloading it will be problematic. The intrinsic value will still be there, but the wealth it represents (in dollars) won't be there. Me say, and maybe me only, that metal is bling, not flour.
If at the minimum of things, it's an indefinite transfer of any current wealth you have in any given monetary system. I wish people would stop thinking of PM's as an item that MUST be useful DURING SHTF and start looking at it as means of storage of a totally different kind. Sorry for my tone, but it's old. You can call it bling, I'll call it storage.
Let me put it to you this way. Bullets are less useful when I can go to the grocery store and get any meat that I need at a price; but when there is no grocery store, bullets are a necessity. Yet you still buy bullets because you can, if you wanted to, you could go out and hunt. Later on, it will not be a question of leisure to hunt.
The same is true here with PM's. Bling now, true money later. It's all a safety net, so I find it ironic that preppers are tone deaf on this as there is zero difference in hedging against things like no food source and things like no monetary system. Would love to see the look on someone's face when a trader says "deer skin.. naaa.. have 1000's of those.. what else you got?" Gold and silver always talk.
I agree fully and that's why the 'you can't eat it' argument grinds me. I have most of my bases covered and yet I still want a place to put my extra cash. PMs (for me) are a monetary battery. I don't know if things will ever play out as SHTF trade with 90% Silver but I also know that the bottom of any TEOTWAWKI is the smallest part of the inverted bell curve of collapse.
Once we rise 'out of the ashes', I'd like me or my children to have some of my meager wealth intact. Dollars and blips in a bank account sure won't make it thorough the slide, bottom and ascent. PMs will.
Actually thats not true. While in general they do have a inverse relationship, you can actually see the amount that is due to buying or due to drop in the value of the U.S. Dollar...
And recently (this last month) the increase has been 16% ...the drop in the U.S. dollar has only been 2% or so....
The recent rise in buying is due to future expectations about the QE2 coming into the economy.
I miss LATOC =(
kitco lets you see the discrepancy between the two daily if you are interested...
Things are going to slide, slide in all directions
Won't be nothing
Nothing you can measure anymore
The blizzard, the blizzard of the world
has crossed the threshold
and it has overturned
the order of the soul
PM's have a place in a prepper's inventory, if they had been bought before the prices went insane. It's at the point now where I think folks that do not already have PM's should probably use their cash to acquire the things that they anticipate trading their gold and sliver to get if our banking system collapses like the proverbial house of cards.
Heirloom seeds, garden tools, carpentry tools, mechanics tools,
toilet paper, long term food storage, and of course ammo.
Enough food to get you and maybe some neighbors through to the time when you can start harvesting the stuff from your gardens.
We may be in for some tough times, but working together, we can make it.
CHECK OUT GOLD, broke 1400 today
$19,948 melt for a bag of 90%... I remember when they were ~$3,000
I agree that gold is out of touch for most preppers now. Will it stay at $1400.... I don't think so. It will come back down. When all those guys that traded dollars for gold in these high prices jump ship on that gold "investment" it will be an "ok" market to buy in. Silver is still a good buy when compared to the value of the dollar. I'd say that if a prepper wanted to shed some Ben Franklins and ensure wealth (comfort) through this scary period (I say "period" because it will come to an end), silver or other hard items (groceries) are a fair investment at the moment.
As the dollar has dropped, oil has risen and all other goods will follow. Unless grocery stores start taking gold, groceries may be a *better investment. Will stores start taking PM for payment? If they do, how much would they charge? Would the hundreds of hours you've put into working for thousands in credits which you traded for gold be worth some cans of beans?
Another way to look at it might be this... if I have bullets and meat.... why do I need to go to the grocery store at all? Rephrased- is gold a better investment than a flock of chickens (bullets and hunting are fleeting in comparison to livestock)? Is gold a better investment than enough land for a sizable garden?
We sure have found the gold prices interesting to say the least. We've kept track of it constantly at work.
When I see the price of gold and silver climbing the way it is, I can't help but wonder just how worthless the paper money will become.
I was researching that today, almost pulled the trigger on buying 60 more ounces of silver.. but here's tha thing, silver has never, ever, ever, gotten over $10/ounce.. In the late 70's it did, due to market manipulation by the Hunts, but otherwise, its been a very stable and low metal.
Something that was baffling me today, I purchased my pre-21 morgans at $21 from a wholesaler 2 years ago.. Now they are worth tween $16-$25 depending on where I sell them.. The quarters, almost doubled in value.. Why? Why has the morgan devalued and the quarters almost follow silver prices?
Doesnt make any sense. I didnt buy the silver today, because after reading a few articles concerning reserves, hedges, mining capabilities, and the historical ratio of gold/silver/inflation/deflation.. I'm just gonna buy more ammo instead.. if nothing else I can have fun with it, shooting spray paint cans or something..
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