The Last Great Presious Metals Buying Oppertunity

I just had to put my first thought down on this for record, more for myself then anyone, but i welcome comments ofcourse, please tell me if you think im wrong please. With the debt "crisis" being resolved for now, pushing the inevitable default and bankrupcy down the road more realisticly, and with the inevitable downgrade by Moodys and everyother ratings agency of the world of our credit rating. The last great oppertunity for what we will call for now cheap presious metals is now here, 6-8 months is how long i figure the window for this will last, no latter. The illusion that is our economy will only last for so long, when the illusion fades then reality sets in, and reality hurts badly, which will drive people to the most ancient form of financial security, precious metals. Today 8-1-11 Gold is around $1,600ish silver is around $39.00ish, as far as i am concerned its buying time, because metals will get a little cheaper or remain flat for a few months before both metals go totaly Ballistic. Buy Now, Gold and Silver IS real money and has been money for thousands of years on every continent by all races of human being everywhere ever. I think of it like this, is every human being through the history of our species correct, or is Ben, sorry Big B, Gold Is Money!!!.

"Buy now or be price out forever!" has a pretty bubble-licious feel to it. Remember people lining up around the block to buy useless houses in the boom a few years ago?

Just sayin'.

You may be right. Wall street is way overvalued. Corporate ripoffs are everywhere. What choice do investors have except to buy something real? The deal only delays the bankruptcy of the U.S.

sell

that's how warren buffet made his money initially. go against the herd. you may miss out on $1,900 an oz, but you won't be holding it at $900 an oz either

and good luck buying a loaf or bread with gold or silver shavings

Originally posted by jondave
You may be right. Wall street is way overvalued. Corporate ripoffs are everywhere. What choice do investors have except to buy something real? The deal only delays the bankruptcy of the U.S.

What if everything (even gold) is overpriced? Because there is too much fiat money?

So the only way for the system to adjust would be for everything (gold too) to come down in real value. Probably through massive inflation.

We are used to thinking of one thing as overvauled while another is undervalued, and gains occuring against one thing in favor of another (ie., stocks go down, gold goes up....) But what if everything is overpriced, and people simply have too high expectations about the value of any given thing?

Is this possible? Any econ people want to tell me I'm stooopit?

reply to post by syrinx high priest
I do understand your point and its quite valid,may i make this point to you, you say sell, gold is down $18 and silver down $1 asof the time of this post, that means people are selling. Im advocating people to buy, buy now, buy soon and buy a lot, so by the Warren Buffet example you site i am indeed bucking the trend. The gold or silver shavings maybe not, but everyone knows what a silver dollar is and what its made of and its precious metal value of the coin past what is engraved on its front.

reply to post by syrinx high priest
You would probably be able to buy bread with silver, easier than with dollars. In Jamaica a bucket of KFC is $2,000 in their money, U.S. will have the same devaluation of the dollar soon.

reply to post by Partygirl
I agree with you about upcoming inflation, the reason is the dollar is going down. Everything is valued in dollars. If everything went down in dollar value, that would indicate a stronger dollar. The dollar is not getting stronger, its tanking.

reply to post by Partygirl
The bubble idea doesnt really fit here because gold isnt flooding the market, infact supplys are constricting, not consticting as quickly as silver but quickly. The value of gold and silver is based more on the strength of the US dollar on overseas markets, i site the dollar index as a direct comparison for gold prices and silver prices. I will give this example- in 1940 a quarter .25 would buy a gallon of gas, today in 2011 that same 1940 quarter would be worth the price of a gallon of gas in paper money, however a quarter from 2011 is worth just .25 cents, and far less on metal value, but that silver quarter has held its value, the gasoline is the exact same price based in metals, but has increased by well over 1000% in US paper money.

Originally posted by jondave
reply to post by Partygirl

 

I agree with you about upcoming inflation, the reason is the dollar is going down. Everything is valued in dollars. If everything went down in dollar value, that would indicate a stronger dollar. The dollar is not getting stronger, its tanking.

Waitaminute, I said "real value" which means value adjusted for inflation

For example, if today gold is X amount and tomorrow gold is X+3%, it looks like gold went up 3%. But if real inflation is 4% over the same period, gold actually went down in real value! So even though superfically it seems like a gain, it's really a loss in purchasing power.

Isn't that possible in an inflationary economy?

Originally posted by 1947flxible
reply to post by Partygirl

 

The bubble idea doesnt really fit here because gold isnt flooding the market, infact supplys are constricting, not consticting as quickly as silver but quickly.

Yes yes, and "they aren't making any more land" either, right?

reply to post by Partygirl
i refer to availible supplys verses growing demand, yes they are mining, but its not enough to keep with demand, especialy in silver. I site the USGS own study that sites US silver reserve supplys for the first time in history were at 0, and that silver could be the first material on the periodic table of elements to become virtualy extinct. In January 2011 the USmint sold over 4 million 1 oz silver eagle, highest monthly demand in history, creating a waiting list for physical delivery because actual on hand supply was far less then ordered due to overall supply shortage. Not the usual reaction when a market is being flooded.

PS and real inflation is about 10%, its easy to say 4% when not counting food or energy prices, which are going through the roof, been to the grocery store lately, prices are either going up, or the product size's are going down. This i am an expert in, ive been in the industry for 15 years, companys are trying in every way to cover the inflation reality, and that is just a fact, no matter whatever you choose to site, the news may tell you the sky is green, but seeing the blue with your own eyes is an awakening to the lies you are being told.

reply to post by Partygirl
I dont know what Your definition of real inflation is, but I assume You may be talking about food, like bread. If bread goes up 4% and gold goes up only 3%, your right, gold buys less bread, but it still buys more bread than the dollar.

Originally posted by 1947flxible
reply to post by Partygirl

 

i refer to availible supplys verses growing demand, yes they are mining, but its not enough to keep with demand, especialy in silver. I site the USGS own study that sites US silver reserve supplys for the first time in history were at 0, and that silver could be the first material on the periodic table of elements to become virtualy extinct. In January 2011 the USmint sold over 4 million 1 oz silver eagle, highest monthly demand in history, creating a waiting list for physical delivery because actual on hand supply was far less then ordered due to overall supply shortage. Not the usual reaction when a market is being flooded.

And what would happen when orders are called in for physical delivery of all the "paper" gold and silver out there when it comes down to the wire?

There is not enough metal, physical metal, to satisfy all the demand, impossible.

Therefore if you "hold" gold and silver physically, you're set.

If it comes down to SHTF.

Ok... This post might be considered of topic but I see it as on topic and that the above posts are the micro that TPTB that they want us to focus on. Gold and silver are great ways to protect your hard earned money in the short term, but that's what they want you to focus on. They want you to focus on your perceived sphere of influence. They want you to feel helpless and put all of your focus on what you can do to protect your own assets. The problem is, it may already be too late.

The "huge boom" mentioned above was caused by the government making it hard for banks to turn down loans to those who couldn't afford them. It was just one step in an insidious plot to undermine the sovereignty of the US government and thus, the US citizens. This housing bubble was planned. The banks are getting bailed out by the the feds until the feds can no longer afford or borrow enough to bail out anyone. In the next year we are going to see triple the amount of foreclosures and job losses. Once again this is planned.
The feds are no longer looking out for the interests of the American people. Obama has already mentioned renting out foreclosed homes in a move that would amount to seizing property for the state from the banks as repayment for bailing them out.

Agenda 21 is the ultimate reason for all of it. Gold and silver are great investments, but when our own government regulates subsistence farmers out of business and pretty much force people off of their land, we are all in trouble regardless of how much gold you have stashed. The government does so well with the US Postal Service and we no want them to be in charge of feeding us? Actually, the goal isn't to feed us, it's to bring about Social Justice on a global scale.

If you look at the debt debate they are having right now, you'd think think that there could be multiple outcomes. But if you were to think that, you'd be wrong. What's going to happen is a lot of posturing from both, or multiple, sides. In the end there will be no deal and the debt ceiling will be raised anyways. Obama is going to take that little clause in the 14th Amendment out of context, and raise the ceiling on his own. That is to say... He's going to raise the debt ceiling without any cuts in spending, any rise in taxes, or further debate on the issue. When that happens both sides will be up in arms but there will be little that can be done about it. There will then be a race to see how fast we can hit the next ceiling, until the only place we will be able to borrow is the IMF. Heh... hard to believe isn't it?

The only way for the IMF to fund a (former) "economic power house" like the US, is by issuing a new (fiat)currency that they will be able to print as the Federal Reserve Bank does now. They will then levy taxes directly on the people of the US(and other countries that need bailed out) directly, much like they are to Greece. One of the major downsides to this is that(just like the US federal government does to the states, they will impose conditions on the right to borrow. Like the UN Small Arms Treaty, and environmental protection treaties.

The point I'm trying to get across is not that gold and silver are in any way irrelevant, it's the fact that we all know the feces is about to make contact with a windmill and the slight protection that some investments offer should not be the first on the list. Or to put it another way, buy gold and silver, but understand the forces that are causing these investments to rise in the first place and expand your perception of your sphere of influence, or be ready first for the Wiemar Republic then Nazi Germany. Gold and silver didn't do the Jews much good, and if I'm right.... We're the new Jews.

We must educate ourselves first, then others. We must peaceably assemble. We must seek out or train candidates who are as informed as we are and we must get them elected if we are to save our Republic. TPTB will hold it together until after November, but by then it will truly be too late.

Sorry for the apocalyptic tone... I'm in a dark mood.

reply to post by Partygirl


People that own houses = over 65 million

People that own silver/gold= less than 1 million

That does not sound bubblicious.

Although I want some bubble gum now.

This may be the last great pullback, but maybe not. Those of us involved in the silver markets know that the price of silver is still low, and once it is steady past $50, the price will skyrocket, somewhere between $150-250 in just a few months.

Here are the Fundamentals:

1. Silver is a hybrid metal used for industrial purposes as well as a precious metal (pm). This means that much silver is consumed, whereas others like gold are primarily used for a store of value

2. The Comex (biggest pm exchange in the U.S.) is at a record low all-time inventory, with over 50 to 1 leverage. This means the same ounce of silver may have been promised to up to 50 different people, and if any number of them were to stand for delivery, the price of silver wouuld skyrocket

3. The silver market is highly manipulated and constantly supressed. I could talk about this for a while but I will spare you the details. A little do-diligence will go a long way on this one

4. Silver reached it's nominal high of $50 in 1980. A dollar in 1980 would be worth 2.74 today (Inflation calculator, yet silver is about $40, to adjust for inflation it should be a little over $100.

Those are the biggies. Check my sig if your interested in knowing more

Originally posted by Partygirl

Originally posted by jondave
You may be right. Wall street is way overvalued. Corporate ripoffs are everywhere. What choice do investors have except to buy something real? The deal only delays the bankruptcy of the U.S.

What if everything (even gold) is overpriced? Because there is too much fiat money?

So the only way for the system to adjust would be for everything (gold too) to come down in real value. Probably through massive inflation.

We are used to thinking of one thing as overvauled while another is undervalued, and gains occuring against one thing in favor of another (ie., stocks go down, gold goes up....) But what if everything is overpriced, and people simply have too high expectations about the value of any given thing?

Is this possible? Any econ people want to tell me I'm stooopit?

No your not stupid at all, just need a bit of clarification. Your looking at everything from a dollar-centric point of view. When you say "what if everything is overpriced" you are thinking of dollars, because if you price many things in gole you will see what is more expensive and when is not. Oil has gone down in terms of gold, but up in terms of dollars. Is it overpriced? Well not in gold, because gold holds the same purchasing power constantly. The dollar tends to fluctuate, although sometimes it is stable as well (not recently though).

I wouldn't exactly say when stocks go down gold goes up.....it's when the dollar index (dxy) goes down is when gold tends to rise

Just for fun....Dow Jones Vs Gold from 2000 until now:
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