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Silver and Gold



  • edited August 2020
    Yes, gold & silver are spiking because people are scared and political commercials build on that fear. Example: I just read in a North Carolina county there have been 18000+ gun permit requests from Jan to Jul. That's over 2500/month or more than 80 EVERY DAY, 7 days a week!! Just ONE county! Yes, people are scared.
  • $2,000 seems to be a significant resistance point for gold. At some point it blows through and continues to the moon. I’d love to reopen a small position (miners) on a significant pullback in the next few weeks.
    Well gold blow by $2,000 early this week to $2,070. It paused a bit on Friday. While the market marched upward, so does gold/gold miners. Is the correlation breaking down?
  • beebee
    edited August 2020
    Stagflation Lite
    Sticky Inflation
    Supply Disruptions

  • Just saw this in my Google alerts

    And found this statement interesting: “ Some might balk at such bold forecasts, however, we believe the various drivers of gold are rarely aligned as they are today. We also consider gold’s relative size in the financial markets. There have been 200,000 tonnes of gold mined in the history of the world and virtually all of it is potentially available to the market. A gold price of $2,000 per ounce yields a market value of $12.9 trillion. Compare this with global stock, bond and currency markets, each of which totals roughly $100 trillion or more. A relatively small shift in funds from these markets may fuel the gold price for a long time.
  • edited August 2020
    I sold OPGSX 2 weeks ago at $30.08. Friday it closed at $30.11. Were it to dip much lower I’d stick my toe in again (for fun).

    When gold’s rising you get these wild forecasts - not to say it can’t happen. And when it’s been falling for a while, there’s nary a kind word to be found. I think that’s because by and large it trades on emotion. Thanks @Rbrt - good material.

    Overnight - Gold’s off slightly. Silver (the real story lately) +2.5%
  • Howdy folks,

    Seems to be a bit of profit taking this morning. Here's a nice article on silver miners I found. That said, using $100 an ounce as a working premise is a bit much, to say the least. Current resistance is at $30 and silver's all time high is $50. He does have a great discussion about the silver miners and how to break them down.

    For this sort of madness, you want to go to kitco silver for the list of miners.

    Many, if not most of these are listed on foreign exchanges and are penny stocks, so actually buying them can be tricky depending upon your brokerage arrangements.

    and so it goes,

    peace and wear the damn mask,


  • Hi @rono

    Did you ever trade U.S. penny stocks (silver) via the Spokane Stock Exchange? All phone call trades at the time, of course. Over several years I had a grand total return of about a -10%. But, this was interesting and somewhat fun, too. I think I still have some paper sheets of all of the available companies on the exchange.

    As to the Hunt Brothers (from your previous write)..........fond memories of that period. Myself and a life long friend were among the many who were buyers at the numerous "coin show" every weekend for many months that took place at the shopping malls at the time. We mainly traveled the Lansing and Flint area shows, as both areas at the time had a very large population of General Motors well paid employees. One of my best educational experiences as to the laws of supply and demand (Econ 101, street version). We were always amazed at the items the public would bring to the shows to sell, related to silver in particular. A bit of a crazy time and I wouldn't do this now, but we would carry $5,000 - $10,000 cash to these shows for purchase money. All of us worked with a broker/smelter from Cincinnati. He would establish the smelt price he would pay for that day for various types of silver. There was never a threat we knew about from anyone trying to rob anyone at gunpoint, but among the dealers and the smelter, there was a boat load of cash at any one show. We were honorable at our table and wouldn't buy a high quality coin from someone for smelt price and would help them understand that their high quality/or desired Morgan dollar was worth more than smelt and make a fair offer. We also sold collectible coins. The supply/demand from the public, many of whom remained bullish on silver, long past its high, paid some serious markup premiums. I recall that when 99% silver was about $45/oz, that it required $6,000 to buy a 100oz bar. About a 33% premium.

  • good norming. thinking of selling 50% of GLD... price so high now... everyone running toward stocks. Any thoughts? thx
  • edited August 2020
    johnN said:

    thinking of selling 50% of GLD... price so high now... everyone running toward stocks. Any thoughts? thx

    Sorry - No thoughts here @John.

    Gold’s off the most in one day since 2013. Down $80 at last glance. Miners off 6% at midday. With gold and silver “tumbling“, I though a nice rendition of “Tumbling Tumbleweeds” might sooth ruffled nerves.

  • edited August 2020
    Thx sir...this song makes perfect sense early mid March 2020 .or after good drinking partee .kind regards..maybe too late now ... I love the song!!

    Another read from barrons

    Why Gold and TIPS Are the Best Protection for a Falling Stock Market
    By Randall W. Forsyth

    Time is funny, especially as the years pile up. The five months since Barron’s decamped from its Midtown Manhattan office seem an eternity, but my four decades covering the financial markets feel as if they’ve flown by.

    That span has encompassed a range of interest rates, from the highest in U.S. history in the early 1980s to the present unprecedentedly low level, skirting zero percent. Forty years ago, the prevailing sentiment was that double-digit rates were a permanent feature of the financial firmament. Those expectations...
  • edited August 2020
    Miners are now off almost 8% today. Reestablished small toe-hold in the mining fund I got out of 2 weeks ago. Would add an equal amount on further weakness. However, doubt I’ll ever get back up to the amount I sold. It remains a very risky asset at these prices. Hey! Pick your poison.:)

    @JohnN. Glad you enjoyed the song. Good luck.
  • Hi Mark,

    Hope this finds you well and safe. Ah, the good old days. You guys were lucky and had money to play the Hunt Bros. rally. I was just a poor pot smoking hippy finishing up my degree in Econ financed by the GI bill and my silver sales. My 2nd sabbatical had been running Ponderosas in the mid 70's. I bought all the silver out of the till every day for four years. It was good. It sure helped my partying.

    The metals are getting clobbered today but that's OK. I just bought a bit more at these sale prices. Here is what Pat Heller (Liberty Coin Service) just posted on his FB page.

    "Wow, precious metals prices ended up getting clobbered today. At the COMEX close, here were spots:

    Gold: $1,932.50, down $92.00 from yesterday's close
    Silver: $26.04, down $3.19 from yesterday's close
    Platinum: $967.090, down $31.00 from yesterday's close
    Palladium: $2,172.00, down $93.00 from yesterday's close

    Obviously, the US government arranged for enough selling of short contracts on the COMEX to spook hedge funds and others investment funds to take some profits by closing out some long positions.

    As of a couple minutes ago, here is what Liberty Coin Service was using for its bid and ask spots to buy and sell physical precious metals:

    Gold: bid spot price $1,914.50/ask spot price $1,917.00
    Silver $24.99/$25.05
    Platinum: $933.00/$941.00
    Palladium: $2,068.00/2,118.00

    With this volatility, it is likely that the bid/ask spot price spreads will soon widen."

    That's what you want to watch - the premiums and supply availability. Econ 101. Artificial pricing results in either a lack of supply or premiums or black market. Whenever the official price of something is less than what the people on the street see as being worth, the supply dries up or premiums explode or things go to the black market. Remember Nixon's gas price freeze? All of a sudden, the gas stations were out. Sorry. Same/same with the price of money (i.e. the interest rate). When it is set lower than the folks with money feel it's worth, all of a sudden they're completely out. You want a 30 year fixed mortgage at 3%? Fine, but sorry we're all out of money today. How about 4.5%? Well, maybe we can find some.

    Oh well, I added a bit more today at these prices.

    and so it goes,

    peace and wear the damn mask,

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