Posted on 09/08/2009 7:40:40 PM PDT by STONEWALLS
"Gold and other commodities rose along with stocks as investors returned from the long holiday weekend willing to add some risk to their portfolios.
Silver and copper hit new highs for the year as gold futures topped $1,000 during the day for the first time since February. Oil futures were up 4.5%."
(Excerpt) Read more at online.wsj.com ...
ain't that the truth.
FWIW, I’m selling at $1,200.00. ;)
When Gold breaks the ceiling, look out above. I could easily believe Gold at 2k in a short time.
Oh no!!! wait it out. You will make big money when it rises above 1.2k
Other commodities too. Sounds like a generalized inflation.
Inflation adjusted market peak is closer to $2k.
Too many shops buying gold now. Chinese sopping it up. $2k is a reasonable and modest target even before the inflation hits from the triple deficits.
I’m watching it like a hawk, believe me. $1,200.00 was my original sell-point in January, but thanks to the 0bamaconomy, that just might be the beginning. ;)
See Post 7. :)
It’s going to blow right through $1000 no problem. I used to think gold was going to a minimum of $1650, but with all this “stimulus” insanity, I would not be surprised if gold triples or more before this all over. Needless to say, I have taken up numerous gold positions, both physical and paper, and stand ready to profit. After all, somebody has to be there to pick up the economic pieces once the dust settles!
“Too many shops buying gold now. Chinese sopping it up.”
...that’s a good point that’s often overlooked...the last hard money in this country was pre-1964 silver dollars/halves/dimes....many Americans don’t even remember that....all they know is government paper money....other cultures don’t think that way....they respect gold and silver....they’ve seen what can happen when paper money becomes worthless...I suspect they’re helping to drive the price of precious metals.
“thanks to the 0bamaconomy, that just might be the beginning.”
~~~
As the price of ammo heads for the Moon!...;0)
“How can you invest in gold without taking possession of the actual metal?”
....personally I always get physical gold/silver....I don’t want a piece of paper from a guy I never met, saying my gold I’ve never seen is stored some place I’ve never been.
You can buy shares in gold mining companies and gold investment funds. Invest in companies based in Canada and other countries if you’re afraid of a fed gold-grab.
Bad idea.
Look at the numbers of “Open Interest” at the Comex for gold.
“Open Interest” means that somebody, somewhere, has a contract where the price is already set - a contract to demand delivery of physical gold.
It’s arranged by month
Sep 172
Oct 20,056
Nov 21
Dec 308,800
Now these contracts are measured in ounces - but 172 isn’t 172 ounces, it’s 17,200 ounces. Each contract is 100 ounces.
So in October, Comex could be obligated to deliver 2,005,600 ounces. Well... maybe. It does have that much, I think it has about 3 million ounces. November we eat turkey.
Then, in December, the SHTF. Comex is obligated to deliver a whopping 30,860,000 ounces! Thirty million ounces!!
As time has gone on, they have accumulated these positions (and yes, these are short positions), by “rolling over” contracts which means when the contract comes due, they make a new deal and cut a new contract that is slightly more profitable for the buyer than actually taking delivery of the physical metal. So the numbers have been growing larger and larger and larger and bigger and bigger and bigger...
tick tock tick tock
As far as Comex is concerned, they’re even worse off with silver!!
Sep 720
Oct 72
Nov 5
Dec 85,478
So once again, Dec is the do or die month. But there’s a big difference here... silver contracts aren’t written for apuny 100 ounces each. If they were, then that would mean 8,547,800 ounces. Alot of silver, for sure.
Comex silver contracts are written in FIVE THOUSAND OUNCE INCREMENTS!!
So in December, Comex might have to come up with a little bit of silver, somewhere in the neighborhood of 427 MILLION ounces!
There might not be that much silver in North America. There might not be that much in the entire western hemisphere.
And this is what the whole market manipulation things folks are screaming about.
When the contracts come due, the banks and brokerage houses write new contracts at cheaper prices. The people think “what the hey, might as well, they’ll sell it to me cheaper next month”
And then the price is set - at the cheaper contract price.
So the big money players have depressed the price of the real metal by selling paper contracts!
This is kinda the idea behind the whole thing, and I’m sure some financial wizard know-it-all types will be showing up to tell you where I’m wrong.
OK,just wish I had that kind of money.
I have taken physical possession of my gold and silver coins. My paper gold is in the form of gold funds comprised of mining stocks, etc. You can also trade physical gold without taking possession, but I don’t recommend it...too many fees involved.
All the best—GGG
Whatever its worth in paper money, I’ll always accept gold for what I make or render, and I know others will accept gold for what they make, trade, or render. No matter what. Always and forever.
Recommend owning it personally than buy it via ETF. Some disturbing reports have come out that these ETF are not well audited and many underspent on facilites/security to keep their overheads low. Some actually allow other people to borrow against the gold that is already owned by other people. Buy gold from them, but have storage/security done by a separate well known security company like Brinks. Tough for the US to outlaw gold in US. Over half of the existing US dollar is physically overseas in foreign hands. The US government will seize gold to protect the value of the dollar. Unlike the 1930’s where most of the dollar was in the US, the government will signal to foreign holders of the dollar that something is wrong with the currency. It would trigger a foreign sell off of the US dollar, which the act of seizing domestic gold was suppose to prevent. Today I think the US government will use the large US investment banks and taxpayer dollars to keep gold prices down on the commodities exchange. It is less dramatic as confiscating gold, and much more discreet to do.
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