Support NeoGAF

[ErnieMcCracken]

More carnage, more profit!

Anyone else net short here or am I the only one relishing market bleed-outs?

Riding SDS to the bottom! Getting a dividend play w/ AGNC (18-20% yield). Will ride that out for the next few years while the interest rates stay down. Long on PG so will just have to deal with that.

 

[nitewulf]

Finance Question

When using a proxy to calculate a company's Beta, I am use the S&P 500 vs the historical price ( from year A to year B/ monthly) for Company X. However I am being told to use S&P 500, The 10 year US T-Bill and Company X.

Why use the 10 year T- Bill, because it is risk free?! I already have a proxy.

to calculate Beta you can just use an index and whatever company stock price you are looking at. just get the historical pricing for the same period, for the index and Company X. calculate the percentage return per period (current close price/previous close price) for both. copy these two colums and run a linear regression analysis on excel. that will give you beta. beta will be the coefficient of the dependent variable (Company X), in other words, its the slope.

 

[Anno]

So who's ballsy enough to get long here soon? I keep on telling myself I will, then holding off because it feels like more shit is coming. If we close above last-weeks lows tomorrow I think it might be pretty stable support. Some of the dividend yields and valuations are starting to look pretty ridiculous, especially considering all this shit doesn't have a lot of impact on companies.

 

[Zyzyxxz]

Bought a whole bunch of stuff today on the cheap. Also, solid gains for gold I just bought earlier this week :lol

What's you guys' opinion of AAPL right now? Even though the stock has come down I am still hesitant to jump in because I don't see the iPhone 5 doing as well as its predeccesors, and due to Android recently putting out good quality devices.

Even with Android OS being the biggest Apple still has the advantage of having the iPhone as the single best selling smartphone, considering that they have 22% of the smartphone OS market (behind Google and RIM) they are doing it with only a few models and its mostly iPhone 4 driven.

I don't see the success dropping, I do think growth will slow down thats for sure but you aren't going to see negative growth and I would bet my stocks on that.

You have a customer base that is very loyal and already locked into Apple considering many have invested money into apps and itunes which are nontransferrable.

I'm thinking of buying but I want to see how low it will truly go before September rolls around.

So who's ballsy enough to get long here soon? I keep on telling myself I will, then holding off because it feels like more shit is coming. If we close above last-weeks lows tomorrow I think it might be pretty stable support. Some of the dividend yields and valuations are starting to look pretty ridiculous, especially considering all this shit doesn't have a lot of impact on companies.

Definitely not me, I can see plenty of longs here but I have a feeling its still going to be bumpy and some money can be made along the way back up.

 

[jamesinclair]

Looks like it all comes down to Friday. Will you be a legend or just some guy who got lucky.

My last week predictions were 100% accurate. I should have a TV show.

(I didnt predict anything for this week because I was traveling with limited internet access)

Fridays are always the hardest day to predict though. It's so emotional instead of rational.

I still stand by my comment earlier about how the fun is always saved until the last Friday of the month.

 

[Ether_Snake]

I'm guessing tomorrow will be a very shit day.

 

[Zyzyxxz]

I'll be ready to do some christmas shopping. Or maybe putting stuff on layaway.

 

[thirty]

Every down day it's the same thing from wall street on cnn "the market shouldn't drop because it's a reflection of how well companies are doing profit wise" then directly after they say "there are so many people out of work something needs to be done to get people spending" I swear this is the housing bubble all over again where it's so blatantly obvious that the system simply won't hold up long term but no one gives a shit because money is being made. The ONLY reason companies are profiting is because of all the lay offs, outsourcing and cutbacks. There is no real growth. None. It's all bullshit. But as long as they keep juking the stats it's going to be rough.

 

[unomas]

Bought a whole bunch of stuff today on the cheap. Also, solid gains for gold I just bought earlier this week :lol

Oh gold just hit $1858 an ounce and silver is up over $41, stay in the precious metals game, there are plenty of gains left to be made. Anyone who jumps off early is definitely losing out

 

[zero_suit]

Every down day it's the same thing from wall street on cnn "the market shouldn't drop because it's a reflection of how well companies are doing profit wise" then directly after they say "there are so many people out of work something needs to be done to get people spending" I swear this is the housing bubble all over again where it's so blatantly obvious that the system simply won't hold up long term but no one gives a shit because money is being made. The ONLY reason companies are profiting is because of all the lay offs, outsourcing and cutbacks. There is no real growth. None. It's all bullshit. But as long as they keep juking the stats it's going to be rough.

Well said. I am honestly flabbergasted at how high the market got before it got on this recent roller coaster ride.

 

[Zyzyxxz]

omg why the hell didn't I buy Clearwire (CLWR) yesterday! It jumped 0.84 on opening and I was stupid enough to wait and see what happened.

 

[otake]

You know, this volatility is really starting to get me.

 

[Xisiqomelir]

Posted?

http://www.bloomberg.com/news/2011-...ault-as-venezuela-brings-back-gold-hoard.html

Chavez Emptying Bank of England Vault as Venezuela Brings Back Gold Hoard
By Daniel Cancel and Nathan Crooks - Aug 18, 2011

Venezuelan President Hugo Chavez ordered the central bank to repatriate $11 billion of gold reserves held in developed nations’ institutions such as the Bank of England as prices for the metal rise to a record.

Venezuela, which holds 211 tons of its 365 tons of gold reserves in U.S., European, Canadian and Swiss banks, will progressively return the bars to its central bank’s vault, Chavez said yesterday. JPMorgan Chase & Co. (JPM), Barclays Plc (BARC), and Standard Chartered Plc (STAN) also hold Venezuelan gold, he said.

“We’ve held 99 tons of gold at the Bank of England since 1980. I agree with bringing that home,” Chavez said yesterday on state television. “It’s a healthy decision.”

Chavez, whose government depends on oil for 95 percent of its export revenue, is looking to diversify Venezuela’s cash reserves from U.S. and European banks to include investments in emerging markets including Brazil, China, India, Russia and South Africa, central bank President Nelson Merentes said yesterday. The world’s 15th-largest holder of gold is bringing back its gold after a 28 percent rally in the price this year.

Venezuela’s reserves stood at $28.6 billion on Aug. 16. Finance Minister Jorge Giordani said that the weakening U.S. dollar, a near-default by the U.S. government and the European sovereign debt crisis threaten Venezuela’s savings and they will be more secure at home and in “allied” countries.
‘Green Light’

Chavez, speaking by phone on state television last night, said he signed the document yesterday authorizing the transfer of the gold reserves. “I said, ‘I give my absolute approval to this idea’,” Chavez said. “I gave it the green light.”

The central bank already has about $7 billion of gold in its vaults. Of the country’s liquid reserves, which amount to about $6.3 billion, 59 percent are held in Switzerland, 18 percent in the U.K and about 11 percent in the U.S., according to a government report.

Venezuela received a capital gain of $9.3 billion on its gold holdings since 2009 on rising prices, according to a Bank of America Merrill Lynch report today.

The country’s share of gold reserves is almost eight times the region’s 8.3 percent average and leaves Venezuela vulnerable to sharp declines in prices while holding illiquid assets, the report said.

The government may move to repatriate reserves before arbitration case rulings to avoid a so-called attachment risk that could freeze international assets, Boris Segura, a New York-based strategist at Nomura Securities, said in a research note.

The repatriation and diversification of reserves may also cloud transparency of government holdings, which would be a negative for the country’s credit, he said.
Lack of Transparency

“We sense that Venezuelan debt prices already incorporate a sizeable ‘lack of transparency’ premium,” Segura said. “However, looking at the possible geopolitical signals that these proposed policies communicate, we fear that Venezuelan bond prices may suffer.”

In all, Venezuela has 365.8 metric tons of gold reserves, according to the World Gold Council.

Chavez’s decision could have “worrisome” implications because of less data transparency and the threat that the gold stock could be used for politically motivated spending before next year’s presidential elections, RBS Securities Inc. said.

“It is clear that the motivation appears mostly to fit a political agenda to align with strategic political partners and retaliate against the recent U.S. sanctions on fears that assets might at some point be frozen,” RBS Latin American analysts Felipe Hernandez and Siobhan Morden said in a note.
Borrowing Costs

Venezuela has the highest borrowing costs among major emerging-market countries. The extra yield investors demand to own Venezuelan government bonds instead of U.S. Treasuries rose 50 basis points, 0.50 percentage point, to 1,239 basis points today at 4:35 p.m. in New York, according to JPMorgan & Chase Co.’s EMBI+.

Yields on the government’s benchmark 9.25 percent bonds maturing in 2027 rose 60 basis points to 14.14 percent at 4:35 p.m. in New York, according to data compiled by Bloomberg. The price fell 2.88 cents on the dollar to 69.25 cents.

Chavez also said yesterday that he’s preparing a decree to nationalize the gold industry to halt illegal mining and dedicate local production to building up reserves.
Mining Arbitration

Of 17 arbitration cases pending against Venezuela in the World Bank’s International Centre for Settlement of Investment Disputes, at least three of them are over mining ventures, including Crystallex International Corp. (KRY), a Canadian gold producer whose Las Cristinas mine was taken over by the government in February.

Gold Reserve Inc. (GRZ), a Spokane, Washington-based mining company, is seeking $2.1 billion in damages after its Las Brisas gold and copper project was seized in May 2008.

“Today’s announcement is not surprising,” Doug Belander, Gold Reserve president, said yesterday in an interview. “We believe that their objective all along was to take over the entire industry.”

The South American country, in an effort to boost stalled production and take advantage of rising prices, last year relaxed restrictions on gold exports to allow some companies and joint ventures with the government to send as much as 50 percent of their output abroad.
Rusoro’s Operations

Rusoro Mining Ltd. (RML), a Vancouver-based mining company, is the last publicly traded gold mining company operating in Venezuela. The company’s stock rose 12 percent to 14 Canadian cents as of 4:35 p.m. in Toronto, after yesterday plunging 17 percent to its lowest in almost a decade.

Rusoro Chief Executive Officer Andre Agapov said today that it hadn’t received any indications from the Venezuelan government that its projects in the country would be affected.

“We believe the government’s announcement is targeted toward the many illegal mining operations in Bolivar state,” Agapov said in a statement.

Venezuela produces 11 metric tons of gold a year, and illegal miners extract an additional 10 to 11 tons a year, Chavez said in May.

Venezuela’s National Guard first seized control of the Las Cristinas mine, which has reserves of about 27 million ounces, in November 2001 from Canada’s Vanessa Ventures.

Gold futures for December delivery rose $32.90, or 1.8 percent, to a record settlement of $1,824.10 an ounce on the Comex in New York today.

“If there isn’t enough room to store the gold in the central bank vaults I can lend you the basement of the Miraflores presidential palace,” Chavez said.

To contact the reporters on this story: Daniel Cancel in Caracas at dcancel@bloomberg.net; Nathan Crooks in Caracas at ncrooks@bloomberg.net.

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.

 

[TylerD]

What are your opinions on buying Bank of America for the long haul? It is too big to fail right?!?!

 

[Zyzyxxz]

What are your opinions on buying Bank of America for the long haul? It is too big to fail right?!?!

I'm in 300 shares for now and possibly more on Monday depending on the news.

Although they announced they are cutting 3500 jobs as a company I think they are pretty stable if not for the looming $10 billion lawsuit by AIG. The recent news about their asset selloff shows they are making the necessary changes.

They will probably keep shedding jobs to help those balance sheets look good. Either way I'm watching my position carefully, expecting long but I wouldn't be surprise at bad news still to come so I'm ready to jump out if I can make a quick buck.

 

[TylerD]

I'm in 300 shares for now and possibly more on Monday depending on the news.

Although they announced they are cutting 3500 jobs as a company I think they are pretty stable if not for the looming $10 billion lawsuit by AIG. The recent news about their asset selloff shows they are making the necessary changes.

They will probably keep shedding jobs to help those balance sheets look good. Either way I'm watching my position carefully, expecting long but I wouldn't be surprise at bad news still to come so I'm ready to jump out if I can make a quick buck.

Thanks!

 

[bob page]

What are your opinions on buying Bank of America for the long haul? It is too big to fail right?!?!

Yep, BoA is too big to fail. They're near their 52 week low, so it may be a pretty decent buy around now.

 

[misterchef]

Yep, BoA is too big to fail. They're near their 52 week low, so it may be a pretty decent buy around now.

FYI that 52 week low means absolutely nothing as it happened last week. (It's been making 52-week lows pretty much every week for almost 2 months)

 

[thirty]

I'm in 300 shares for now and possibly more on Monday depending on the news.

Although they announced they are cutting 3500 jobs as a company I think they are pretty stable if not for the looming $10 billion lawsuit by AIG. The recent news about their asset selloff shows they are making the necessary changes.

They will probably keep shedding jobs to help those balance sheets look good. Either way I'm watching my position carefully, expecting long but I wouldn't be surprise at bad news still to come so I'm ready to jump out if I can make a quick buck.

Lol this is the exact reason why it's all gonna crash anyway. Need to show profit? Fire people! What a joke.

 

[Zyzyxxz]

Lol this is the exact reason why it's all gonna crash anyway. Need to show profit? Fire people! What a joke.

yeah that's why stock performance means jackshit to me in real life, the hell I care if they hit a record high, how does that impact me as a worker in this economy?

Wall street is just another game I'm trying to take advantage of while I can.

 

[diddles]

what are you guys' opinions on gold, silver, and other precious metals? I got in way back around 1400 per oz gold, 27 per oz silver, so i'm pretty happy right now. but i'm wondering when it's gonna be time to cash out. people were saying back then it was too late to get in, glad i thought differently.

 

[spiderman123]

what are you guys' opinions on gold, silver, and other precious metals? I got in way back around 1400 per oz gold, 27 per oz silver, so i'm pretty happy right now. but i'm wondering when it's gonna be time to cash out. people were saying back then it was too late to get in, glad i thought differently.

You cash out when you want to cash out. I know this isn't a response you want but again the stock market is a game of emotions. Know the difference between a Bearish and Bullish security or market trend. Observe that and you'll know when its time.

 

[diddles]

You cash out when you want to cash out. I know this isn't a response you want but again the stock market is a game of emotions. Know the difference between a Bearish and Bullish security or market trend. Observe that and you'll know when its time.

yeah i already have my targets, and i know i can find just about every opinion elsewhere on the web. just wanted to know what some of the local gaf investors think.

 

[spiderman123]

yeah i already have my targets, and i know i can find just about every opinion elsewhere on the web. just wanted to know what some of the local gaf investors think.

I have already addressed the issue. There has been some back and forth on the issue, here is my response. Keep in Mind this is a 10 year projection.

You know what, I did some research and though historically it will show that gold prices tend to max out less than $3000. It will pull back from time to time but the trend will prob be upward. Most economies ( INCLUDING DEVELOPED) are in massive debt because to pay it off it need to use austerity measures that are required to repay the loan. Looking at a social perspective any cuts in the provided services will lead to increase disenfranchisement and increased panic.

The U.S gov't proposed to reduce debt by $2.5 Trillion over the next 10 years but there budget deficit of over $1.5 Trillion per year will raise the debt from $14.5 trillion to $20 Trillion by 2020 based on CBO projections. TO ADD to this there is interest. Every Year the interest on the debt rises till soon a significant percentage of the budget will be used to pay it. So since the U.S and Europe are in for lack of a better word in an economic shitstorm. There is no real solution to the problem except massive devaluation of currencies by printing money on a massive scale ( which they already are). The price of Gold will continue to rise ( and fall) but rise beyond the $3000 dollar mark.

I could be wrong and they take extreme austerity measures but I don't think it will happen anytime soon.

edit: I will also recommend you read other responses as well, to understand the opposite perspective.

 

[jamesinclair]

What are your opinions on buying Bank of America for the long haul? It is too big to fail right?!?!

Why support evil?

Lol this is the exact reason why it's all gonna crash anyway. Need to show profit? Fire people! What a joke.

Thats why the economy is screwed.

Everybody keeps firing people to make their reports look good.

But guess what, all these unemployed people arent running out to buy their products and services.

So they need to fire more people.

Rinse and repeat.

what are you guys' opinions on gold, silver, and other precious metals? I got in way back around 1400 per oz gold, 27 per oz silver, so i'm pretty happy right now. but i'm wondering when it's gonna be time to cash out. people were saying back then it was too late to get in, glad i thought differently.

Gold is an extremely scary bubble.

Everyone that owns it is playing chicken right now.

When it starts to drop, it will drop hard and fast.

Lets put it like this, if you sell now, youll make a nice profit, but youll feel dumb when it keeps going up, thinking you sold too soon.

But when gold is looking at $800, youll feel mighty smart.

 

[Rubenov]

Why support evil?



Thats why the economy is screwed.

Everybody keeps firing people to make their reports look good.

But guess what, all these unemployed people arent running out to buy their products and services.

So they need to fire more people.

Rinse and repeat.




Gold is an extremely scary bubble.

Everyone that owns it is playing chicken right now.

When it starts to drop, it will drop hard and fast.

Lets put it like this, if you sell now, youll make a nice profit, but youll feel dumb when it keeps going up, thinking you sold too soon.

But when gold is looking at $800, youll feel mighty smart.

I'll keep saying this: as long as European countries and the US keep accumulating debt without any plans to pay it down Gold will continue to rise.

This "bubble" will be with us for years.

 

[jamesinclair]

I'll keep saying this: as long as European countries and the US keep accumulating debt without any plans to pay it down Gold will continue to rise.

This "bubble" will be with us for years.

Its completely possible that the bubble will last a few more years.

It also might explode on October 21st.

Thats the thing about bubbles. If people knew when the top would be hit...

Thats why its a game of chicken.

 

[spiderman123]

Its completely possible that the bubble will last a few more years.

It also might explode on October 21st.

Thats the thing about bubbles. If people knew when the top would be hit...

Thats why its a game of chicken.

.

 

[Rubenov]

Its completely possible that the bubble will last a few more years.

It also might explode on October 21st.

Thats the thing about bubbles. If people knew when the top would be hit...

Thats why its a game of chicken.

Possible yes, although extremely unlikely. The fundamentals of the world economy are fucked. There is absolutely no solution to either the European or the US debt crisis. That has the market in constant fear; the same fear that drives the price of Gold forward.

There are two things that can pop this bubble: fix capitalism (good luck), or have banks and governments around the world release the gold they have hoarded to the masses via the market.

My two cents.

 

[Xisiqomelir]

Gold will keep rising until the fed fund rate increases by at least 1000 bps.

 

[unomas]

what are you guys' opinions on gold, silver, and other precious metals? I got in way back around 1400 per oz gold, 27 per oz silver, so i'm pretty happy right now. but i'm wondering when it's gonna be time to cash out. people were saying back then it was too late to get in, glad i thought differently.

My opinion is stay in, you have nothing to lose, you've already made big gains and will make even bigger gains if you hold on to gold and silver. I've been a big Peter Schiff fan for a few years, and I watched a great video last night by Mike Maloney on the gold situation. Take the time to look for alternative sources on precious metals, and not the mainstream media, and you will find your answers on gold and silver. Click the first link below to watch the presentation by Maloney, it's lengthy, but helps educate you on the monetary system, and the second video of Schiff is his most recent opinions on gold.

http://www.youtube.com/watch?v=tj2s6vzErqY (Mike Maloney)

http://www.youtube.com/watch?v=Fm96-nebe-8&feature=player_embedded (Peter Schiff)

Anyone who is telling you to sell at this point is leading you in the wrong direction. The precious metals are on their continued climb up, and with no other money to be made in stocks why be anywhere else in the market? It's a sure bet, anyone not in precious metals at this point hasn't done the research.

As of this post gold is at $1850 and silver is at $42.95. Both are on the up and up.

 

[jamesinclair]

Possible yes, although extremely unlikely. The fundamentals of the world economy are fucked. There is absolutely no solution to either the European or the US debt crisis. That has the market in constant fear; the same fear that drives the price of Gold forward.

There are two things that can pop this bubble: fix capitalism (good luck), or have banks and governments around the world release the gold they have hoarded to the masses via the market.

My two cents.

You missed one.

Fear can pop the bubble. Fear that the bubble is too big and it's time to get out. Aka: Self-fulfilling prophecy.

All you need is one day where a few people decide to sell and the amount goes down...and suddenly people get worried and sell, and sell, and sell....an before you know it, gold costs $650 (it then rises to $900 the next day as people think its under-priced)

Anyone who is telling you to sell at this point is leading you in the wrong direction. The precious metals are on their continued climb up, and with no other money to be made in stocks why be anywhere else in the market? It's a sure bet, anyone not in precious metals at this point hasn't done the research.

As of this post gold is at $1850 and silver is at $42.95. Both are on the up and up

This is the kind of idiocy that has created this dangerous bubble.

Gold doesnt appreciate in value, create wealth or create profit.

It's a holding unit.

In fact, one of the unique properties of gold is that it doesnt expire. That is, every day, there is more gold in the market than the day before. So unlike oil, its becoming less scarce.

People are buying gold simply because they see the price go up. But there is nothing behind it, just the hope that someone will be willing to pay more.

Thats dangerous.

 

[unomas]

You missed one.

Fear can pop the bubble. Fear that the bubble is too big and it's time to get out. Aka: Self-fulfilling prophecy.

All you need is one day where a few people decide to sell and the amount goes down...and suddenly people get worried and sell, and sell, and sell....an before you know it, gold costs $650 (it then rises to $900 the next day as people think its under-priced)



This is the kind of idiocy that has created this dangerous bubble.

Gold doesnt appreciate in value, create wealth or create profit.

It's a holding unit.

In fact, one of the unique properties of gold is that it doesnt expire. That is, every day, there is more gold in the market than the day before. So unlike oil, its becoming less scarce.

People are buying gold simply because they see the price go up. But there is nothing behind it, just the hope that someone will be willing to pay more.

Thats dangerous.

Well, I guess the kind of idiocy that's making me money, and I'll keep smiling all the way to the bank. I'll continue to smile after $2000 an ounce, $3000 an ounce and so on. You'll keep calling it idiocy and I'll have more wealth when I decide to get out by a substantial amount. If it's idiocy, why are central banks hording gold and buying it by the ton? They know what's happening to currencies around the world, and guess what? Not that many people even own gold, the mass market is nowhere near the thing right now. The price will only continue to go up, and those that were stupid enough not to get on board are clueless.

 

[jamesinclair]

Well, I guess the kind of idiocy that's making me money, and I'll keep smiling all the way to the bank. I'll continue to smile after $2000 an ounce, $3000 an ounce and so on. You'll keep calling it idiocy and I'll have more wealth when I decide to get out by a substantial amount.

If you can really read over what you wrote and not notice anything wrong, I can do nothing to help you.

I do suggest you leave some cash aside so you dont have problems paying your mortgage in the future.

 

[GaimeGuy]

I'll keep saying this: as long as European countries and the US keep accumulating debt without any plans to pay it down Gold will continue to rise.

This "bubble" will be with us for years.

that's not why gold is high.

God, so many people think investing = money goes in, money comes out and have no understanding of the inherent value of things. Just what's next to the dollar sign.

 

[Zyzyxxz]

This is the kind of idiocy that has created this dangerous bubble.

Gold doesnt appreciate in value, create wealth or create profit.

It's a holding unit.

In fact, one of the unique properties of gold is that it doesnt expire. That is, every day, there is more gold in the market than the day before. So unlike oil, its becoming less scarce.

People are buying gold simply because they see the price go up. But there is nothing behind it, just the hope that someone will be willing to pay more.

Thats dangerous.

Yeah I feel the same but at the same time its still so tempting with so much uncertainty in the market with the only constant being that gold has consistently risen in value over the last few weeks and will continue to do so for the short term at least.

 

[jamesinclair]

Yeah I feel the same but at the same time its still so tempting with so much uncertainty in the market with the only constant being that gold has consistently risen in value over the last few weeks and will continue to do so for the short term at least.

How many other people do you think noted the same thign and decided to buy?

How many others like unomas are out there?

As I said, it's a giant game of chicken.

Feel free to jump in. Just remember, it's the same as gambling. You may luck out and pull out at just the right second.

Or you'll lose everything.

 

[unomas]

How many other people do you think noted the same thign and decided to buy?

How many others like unomas are out there?

As I said, it's a giant game of chicken.

Feel free to jump in. Just remember, it's the same as gambling. You may luck out and pull out at just the right second.

Or you'll lose everything.

Do you really believe the average Joe is in on physical gold and silver? I just don't see it, this thing has just begun, and anyone who doesn't have cash on hand to pay their mortgage/rent is obviously not an intelligent person. To me the precious metals have plenty of room to grow with so much economic uncertainty, and with the rest of the market tanking why not? There are no economic indicators which point to gold and silver crashing anytime soon. People said don't buy at $1000, don't buy at $1400 and now we're clear and above $1800 comfortably with silver closing the GSI at 43 to 1 just shy of $43 an ounce.

How many people do you think own a physical ounce of gold or silver? What percentage of Americans do you think own physical gold and silver bullion? This market hasn't been anywhere near tapped yet, it's just begun.

 

[Rubenov]

I do suggest you leave some cash aside so you dont have problems paying your mortgage in the future.

Hey unomas, better sell your gold shares man. I don't want to see you lose the house!

 

[Rubenov]

Yeah I feel the same but at the same time its still so tempting with so much uncertainty in the market with the only constant being that gold has consistently risen in value over the last few weeks and will continue to do so for the short term at least.

It has been growing in value over the last 4 years.

 

[Synth_floyd]

It's not that gold, silver or other precious metals are increasing in value. It's that the dollar is decreasing in value. 1 oz of gold is still 1 oz of gold. It just buys more dollars.

And the reason why gold has value is because people say it has value. If people thought bird shit was valuable they'd trade that rather than gold.

Gold will likely stay valuable because as fiat currencies decrease in an era of massive debt, precious metals are seen as a storehouse of value.

Though to be honest stocks are starting to look like a good buy soon. Gold is super expensive now and stocks have been plummeting. Buy low and sell high.

 

[unomas]

Hey unomas, better sell your gold shares man. I don't want to see you lose the house!

Right? It's like people think I haven't researched this to death over the last two years and that I'm just some dumb guy off the street who's buying gold and silver "because everyone else is". Nope, did my homework and waited over 6 months before I ever bought physical, and I only buy physical, no shares for this guy. I was so hesitant to buy my first physical gold and silver back in April of this year, I just didn't want to pull the trigger, I was nervous as hell, it was a hell of a lot of money for me, but looking back now and seeing the direction this economy is headed in worldwide, I have zero fear in my choice, and it's only up from here as fiat currencies continue to be devalued.

I'm not really a gold and silver "bug" per say, I'm a fan of putting my money where it's going to make me money, and that's exactly what precious metals have been doing for years now. Precious metals destroy the dow jones over the last 10 years, but people want to think this is the housing bubble, it's not, not anytime soon

If anyone clicked on the Mike Maloney video I posted on the last page it's more than worth peoples time in regards to the economy and gold and silver. When over 50% of the public owns gold and silver I'll sell, but when less than 1% does...........yeah..........not time to sell.

 

[jamesinclair]

I'm not really a gold and silver "bug" per say, I'm a fan of putting my money where it's going to make me money, and that's exactly what precious metals have been doing for years now. Precious metals destroy the dow jones over the last 10 years, but people want to think this is the housing bubble, it's not, not anytime soon

Look at this chart. What do you think people in 1979 were saying?

Now make a note of where it ends, and what the scale is at that point.

 

[zou]

Look at this chart. What do you think people in 1979 were saying?

Now make a note of where it ends, and what the scale is at that point.

Gold is poised to sky rocket, just like in 2000!

Good stuff.

 

[Synth_floyd]

Obv you gotta know why it ended, which were the policies of the Fed at that time to raise interest rates up to ~20%. Bernanke just said he's going to keep interest rates at the ~0% mark through at least 2013.

 

[jamesinclair]

Obv you gotta know why it ended, which were the policies of the Fed at that time to raise interest rates up to ~20%. Bernanke just said he's going to keep interest rates at the ~0% mark through at least 2013.

Its true, the 1979 bubble and the modern bubble arent the same.

Oil shock, inflation, interest rates, all played a big role back then.

Ie. They created fear and uncertainty. And people rushed to gold.

And then they all rushed out.

 

[thirty]

So we're between return to normal and fear right?

 

[Javaman]

Obv you gotta know why it ended, which were the policies of the Fed at that time to raise interest rates up to ~20%. Bernanke just said he's going to keep interest rates at the ~0% mark through at least 2013.

They're keeping the interest rate low due to there being very little inflation (despite what the gold bugs claim). Once inflation starts ramping up they'll then raise the rates

 

[Xisiqomelir]

They're keeping the interest rate low due to there being very little inflation (despite what the gold bugs claim). Once inflation starts ramping up they'll then raise the rates

Are you aware of the (politically motivated) revisions of the definition of the CPI since 1980? Do you know what the current rate of inflation is by any of the previous measures of CPI, and how it compares to the current measure?

 

[unomas]

Obv you gotta know why it ended, which were the policies of the Fed at that time to raise interest rates up to ~20%. Bernanke just said he's going to keep interest rates at the ~0% mark through at least 2013.

We have a winner, but James Sinclair wants to ignore that now and then are completely different. If the Fed raises rates like they did back then I'll bail out, but as you've stated for the next two years they are keeping rates at 0. It makes no sense to get out of gold and silver in the next 2 years barring some type of major policy shift. Until that happens I'm staying in precious metals where I'll continue to make money. People that are so anti precious metals have been wrong for the last 2 years while gold and silver prices per ounce have more than doubled and they will continue to be wrong.

People will be spewing the same things when gold crosses $2,000 an ounce and when it hits $3000 an ounce. He'll be saying get out when it passes those barriers, and I'll stay in unless there is some type of monetary policy change. Otherwise why lose out on an investment and money? Is gold up for a correction? Absolutely, it will correct, and then it will continue to ascend upward just like it should and has for the last 10 years.

No inflation? Haha. Gold at it's peak? Really?

http://www.youtube.com/watch?v=9O-k5MX0EI0