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Gold and silver. Discuss

Discussion in 'Business, Careers & Education' started by Valproate, Feb 20, 2011.

  1. javyn

    javyn Senior member

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    OMG can ya link me? Maybe I'm naive but I wouldn't have expected something like this from Kitco
     
  2. Crane's

    Crane's Senior member

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    OMG can ya link me? Maybe I'm naive but I wouldn't have expected something like this from Kitco
    Google Kitco tax evasion.
     
  3. imageWIS

    imageWIS Senior member

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    Yeah my bullion guy called me and told me what was going on last week. He was running a pool account too and was wondering if all the assets were seized. Talk about an OF moment. Once I found out the court is allowing Kitco to continue daily ops i yanked all my money from them. My bullion guy did the same thing. If this investigation discovers hanky panky there will be no more Kitco.

    This is a prime example of the benefit of physically holding your metal. I wonder how many more such schemes will end up getting uncovered? JP Morgan was up to no good, now Kitco is in deep shit.....


    This. I mean stocks, bonds, etc... you are forced to hold a piece of paper, but gold? It's worth having the physical metal any day over a flimsy piece of paper.
     
  4. javyn

    javyn Senior member

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    Figured there's be more talk here. What do you guys think? Gold and silver tarnished?

    I say no, and am more excited than ever.

    Swiss Franc is now being inflated, removing the only safe currency left in the world. Where else is there to go but metals? :) Cash? HAHAH

    Also, this bubble talk is ridiculous. Sorry, but if people are saying something is in a bubble, as the mainstream media is doing now, IMO it means the opposite. Who would say gold and silver are in a bubble but someone who either 1) sold their position or 2) never had one in the first place. Doesn't sound like a bubble to me, and there is no rush to sell bullion. As a matter of fact, unsurprisingly, pawn and coin shops seem to be selling out of physical...again.

    Yeah the price of gold is collapsing....back down to the long term trend line. Great buying opportunity JMHO. *shrug
     
  5. NameBack

    NameBack Senior member

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    I maintain my stance that a huge correction in PMs is on the way.

    Maybe I put too much faith in markets, but I tend to think that markets are fairly efficient overall -- and that people will wake up to the fact that PMs are not safe assets. Cash and treasuries are safe -- nothing else is. That's just the simple reality. A safe asset does not lose 4% of its value in a single day. Nothing distinguishes precious metals from any other speculative investment vehicle. It's the simple truth.

    And when things get really ugly -- when another recession hits, when money contracts and currencies start deflating -- there's going to be a serious sell-off as people wake up to the fact that they're holding a risky speculative investment no different from stocks.

    But again, I am assuming that markets are efficient enough to realize this and act accordingly. Certainly this has been the case with bonds -- differentiating the true default risks from the meaningless hysteria quite efficiently, with sovereign currency nations maintaining low yields and monetary zone nations seeing skyrocketing rates -- but bond markets are much, much bigger than PM markets. So, we'll see.
     
  6. javyn

    javyn Senior member

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    I can't predict the future, or what the Fed will do. Either we will inflate, or not. I am ready for both contingencies. (Or at least, foolishly believe I am). Lots of bullion, and a nice amount of cash.

    Hell, I even have lots of money in a speculative stock with a beta of 2.2.

    As far as things getting ugly when a recession hits, yeah, metals will tank along with everything else, question is, what happens then?
     
  7. NameBack

    NameBack Senior member

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    What happens then is the people who are hugely net short make a killing. :)
     
  8. javyn

    javyn Senior member

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    Yeah, but after that....don't think those shorts will roll over to long positions? ;)

    Dunno....I can't think of any instance where gold has been a deflationary hedge...yeah during the Depression, but that was when gold was tied to the dollar. Just so many variables, and depends on which one you focus on.

    IMO the PM bull market is far from over.
     
    Last edited: Sep 27, 2011
  9. Crane's

    Crane's Senior member

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    So has anyone else played the hill and valley game?
     

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