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Don’t Buy Gold
The Daily Reckoning ^ | 4-17-2013 | Greg Guenthner

Posted on 04/17/2013 8:28:45 PM PDT by blam

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1 posted on 04/17/2013 8:28:45 PM PDT by blam
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To: jiggyboy; PA Engineer; blam; TigerLikesRooster; Cheap_Hessian; CJinVA; Jet Jaguar; ...

Goldbug ping.

BTW, NWT mint is selling Silver Bullet bullion.

The price is down, I am considering a few.

http://silverbulletbullion.com/


2 posted on 04/17/2013 8:33:07 PM PDT by Jet Jaguar
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To: blam
China Buys the Dip (and India, and Japan…)
3 posted on 04/17/2013 8:38:16 PM PDT by blam
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To: blam

BTTT


4 posted on 04/17/2013 8:38:19 PM PDT by Old Sarge (We are officially over the precipice, we just havent struck the ground yet...)
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To: Jet Jaguar

5 posted on 04/17/2013 8:39:48 PM PDT by Jet Jaguar
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To: blam
I repeat — don’t jump back into gold. It’s too soon.

I'll buy. Cost averaging. You buy when it goes lower, to cost average what you bought at a higher price. Buy on the dips. When it turns around (eventually) and the price goes higher, you sell some at a price that is higher than your cost average figure. Those profits negate the higher priced gold you previously bought. Buy low, sell high. Others buying on emotion buy when the prices are skyrocketing and lose on the burst of a bubble. Right now, gold is going down, might even go below $1200. But it still makes sense to buy as it goes low, to cost average your assets.

6 posted on 04/17/2013 8:40:11 PM PDT by roadcat
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To: blam

Same thing will happen to ammo...Bet the rent.


7 posted on 04/17/2013 8:50:17 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: blam

Being an avid equities investor I’d have to agree. Especially wrt silver. I’d expect the slide to continue. And I expect the market to correct significantly, as well. Its what the charts suggest. You don’t get these massive sell-offs “out of the blue”. Something is up, we just don’t know what it is yet. Another shoe is likely to drop, based on my personal analysis.

I could be wrong. Most of my trading is on a macro level, eg. individual stocks. But if/when I see an invidual stock take a hit like the markets (and commodities) have, I would be selling it, not buying it, or waiting for a confirmed bottom (e.g. as base to form, and trendlines to confirm - currently we’ve breached most moving averages and the trendlines are not favorable).

Good luck.


8 posted on 04/17/2013 9:03:49 PM PDT by monkeyshine
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To: blam

Don’t buy (physical) gold, because the feds are probably confiscate it soon, and this time, they’re not going to just take your bullion and coins. Hope you didn’t buy that wedding band with a credit card, or you should have went with the ceramic crowns.


9 posted on 04/17/2013 9:17:17 PM PDT by factoryrat (We are the producers, the creators. Grow it, mine it, build it.)
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To: blam

Pop!


10 posted on 04/17/2013 9:27:07 PM PDT by right way right (What's it gonna take? (guillotines?))
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To: factoryrat

“...the feds are probably confiscate it soon...”

Then its time to assemble the militia on Lexington Green again.


11 posted on 04/17/2013 9:44:10 PM PDT by Monterrosa-24 (...even more American than a French bikini and a Russian AK-47.)
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To: monkeyshine

What I find interesting is how the establishment immediately attack gold and silver buyers when the metal drops. Ridicule, sarcasm and etc is directed at the prec metal buyer. You do not see this when stocks, real estate, options and hedge funds take a plunge. Instead the pundits argue one should not panic and the wise ones will buy after the drop in prices. My 2 cents on attitude of establishment financial types attitudes/biases on different types of investments vehicles.


12 posted on 04/17/2013 10:45:29 PM PDT by Fee (9/11 first shaking; 2008 finance collapse second shaking; 2015 ????)
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To: dragnet2

Maybe our gov bought ammo because they knew it would soon outpace gold and silver.


13 posted on 04/17/2013 10:47:27 PM PDT by Obama_Is_Sabotaging_America (PRISON AT BENGHAZI?????)
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To: Obama_Is_Sabotaging_America

Is Silver going the way of ammo?


14 posted on 04/18/2013 12:17:42 AM PDT by Therapsid (Communism has killed 50-60 Million people in only 50 yrs.)
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To: Fee

Yes that is true. They attacked it when it was up, too. Talking heads on financial networks and even the Oracle of Omaha all attacked Gold in an almost surreal coordinated way. It is like denying human history, 1000’s of years of economics. “forget gold, we are more evolved now, trust the fiat paper, invented in 1913 and refined in 1972 when we left the gold standard”. Sorry, but 40 years experience is not enough time to declare 4000 years antiquainted. They don’t want us in PMs and especially not physical gold, maybe in part because they can’t deliver on growing demand for physical PMs. And because gold is associated with certain Libertarian types, and anti-Fed types, and the zombie-apocalypse crowd they ridicule it as a political weapon too. But Ron Paul was right when he said he could buy a gallon of gas for dime when you calculated its cost in gold. He is right that the Fed makes bubbles and pops bubbles influences where private money gets invested.

The thing is at this point you can’t really be sure whether the bubble in PMs was designed by the same Fed that bubbled back the stock market and continues to work on housing/RE. And you can’t be sure they aren’t on the opposite side either. Gold spiked from 2010 to 2012 about $800, with Silver in tow. If you look at multi-year chart you can see clearly how money just plowed right into it. If you remember the tech bubble from 1999-2000 it looks similarly spiked. Straight up. Almost like a short squeeze. And now maybe the beginnings of straight back down. With $85B a month to throw around any single market can be moved in a big way. With Japan throwing other massive amounts you’d expect everything to bubble higher but instead we are probably going to see a big correction. Something specific is happening I suspect, I just can’t guess at what. It could just be that they can’t paper over the worldwide economic malaise any further and the big money realizes it. But that’s too generic to feel right to me.

At the end of all hyperinflated markets comes massive deflation. That is how the cycles work. While we do not fit the traditional “hyperinflation” such as seen in Weimar Germany or Zimbabwe, this recovery from the depths if 2008 happened very fast and with a less solid foundation. It just bubbled due to QE. Fact is we may be in a liquidity trap. All this money being printed and still nothing happening in the economy except asseet bubbles. People who could borrow don’t want to or need to, and people who do want to or need to borrow are unable to. Jobs are not there, especially not $30/hour jobs, no matter how much money is being thrown around. There is essentially nil economic growth, just bubbles. All that money in stimulus and in deficit spending... and it hasn’t worked. So now what do we do?

I am not anti-PM. I just am opinionated, I think all markets are going a good bit lower still. I hope I’m wrong I don’t want to see more wealth wiped out. I would like to be a buyer of PMs and may nibble, but looking for another 10% first. I could be wrong, in fact I want to be wrong. Best wishes and good luck to you.


15 posted on 04/18/2013 12:39:37 AM PDT by monkeyshine
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To: factoryrat
Don’t buy (physical) gold, because the feds are probably confiscate it soon, and this time, they’re not going to just take your bullion and coins.

Lead and brass protect the gold. Attempted theft will result in bloodshed - theirs.

16 posted on 04/18/2013 1:04:27 AM PDT by meyer (When people fear the government, you have Tyranny)
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To: blam

Just want to say that people who like PMs have seen mining stocks behave awfully the last two years. With this big dip in gold&silver they just got really pounded down. A sad story for those who bought. Just go to google finance and in one chart compare
ABX
SLW
GDX
GDXJ
sandstorm gold
GLD


17 posted on 04/18/2013 1:13:17 AM PDT by dennisw (too much of a good thing is a bad thing - Joe Pine)
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To: blam

Don’t buy “paper” gold.

There, I fixed it.


18 posted on 04/18/2013 2:52:15 AM PDT by Vermont Lt (Does anybody really know what time it is? Does anybody really care?)
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To: blam

Goebbels had a good idea on gold. They dig it up from Africa under ground and bury it down under ground someplace else.

It’s stupid.

Unless there’s an industrial need for it, there really is no ‘value’ to gold. It can be as valuable underground in the source mines as it is concentrated under NYC.


19 posted on 04/18/2013 3:02:28 AM PDT by Monty22002
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To: Monty22002

Goebbels is not really the be role model to hold up.

Just sayin’.


20 posted on 04/18/2013 3:14:26 AM PDT by Vermont Lt (Does anybody really know what time it is? Does anybody really care?)
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