quote:
Larry: Is that McEwen mining?
Yes. It hasn’t done much for me yet, but it’s cheap and I can say I own part of a gold mine:smiley:
Capt. Larry Teuton
Swamp Worshiper
I dumped 1400 shares of SPY yesterday at $208, picked them up in Feb. for $188. I think we are due to pull back some shortly. If we do, I will buy them back.
Pioneer 222 Sportfish
Yamaha 250
Although “gold” has had some interesting action for the last decade or so, this chart should introduce some soberness into the idea of “gold as an investment”…
quote:
Originally posted by skinneejAlthough “gold” has had some interesting action for the last decade or so, this chart should introduce some soberness into the idea of “gold as an investment”…
Very true…metals are my “foundation,” if you will, in my investment/retirement accounts with more “traditional” plays on top of that. I do concentrate on that sector, however, in my spec plays/account.
lotta charts in here.
quote:
Originally posted by PeaPodlotta charts in here.
Don’t make fun; some of us have to work to earn our money!
Not all of us have millions left over from the family fortune “Doggles” business…sheesh.
May all your favorite bands stay together…
Yeah, as you can see, precious metals are a good place to “park” money assuming you get it at a reasonable price. The dollar just erodes over time, but if you get a commodity at a fair price, then it theoretically will hold it’s value over time. That being said, just like anything, if you buy low and sell high, you make money, but if you pay too much, you lose money. The chart says it all… If you are buying gold near historically high prices, then the result typically doesn’t end up that well.
quote:
Originally posted by skinneejYeah, as you can see, precious metals are a good place to “park” money assuming you get it at a reasonable price. The dollar just erodes over time, but if you get a commodity at a fair price, then it theoretically will hold it’s value over time. That being said, just like anything, if you buy low and sell high, you make money, but if you pay too much, you lose money. The chart says it all… If you are buying gold near historically high prices, then the result typically doesn’t end up that well.
Should the breakdown in the paper markets of gold/silver occur like I think will happen, I’m certain the price of the actual underlying asset will more than go up just a little bit…
quote:Lots of speculation in that last post. "Should" "Like I think" "I'm Certain" "just a little bit" You haven't skipped a beat with this stuff. Did the Hulltruth not appreciate your input?
Originally posted by SchoolsOut1quote:
Originally posted by skinneejYeah, as you can see, precious metals are a good place to “park” money assuming you get it at a reasonable price. The dollar just erodes over time, but if you get a commodity at a fair price, then it theoretically will hold it’s value over time. That being said, just like anything, if you buy low and sell high, you make money, but if you pay too much, you lose money. The chart says it all… If you are buying gold near historically high prices, then the result typically doesn’t end up that well.
Should the breakdown in the paper markets of gold/silver occur like I think will happen, I’m certain the price of the actual underlying asset will more than go up just a little bit…
’
Down here is where a signature goes but they can confuse and anger some people so I don’t have one.
quote:
Originally posted by SchoolsOut1quote:
Originally posted by skinneejYeah, as you can see, precious metals are a good place to “park” money assuming you get it at a reasonable price. The dollar just erodes over time, but if you get a commodity at a fair price, then it theoretically will hold it’s value over time. That being said, just like anything, if you buy low and sell high, you make money, but if you pay too much, you lose money. The chart says it all… If you are buying gold near historically high prices, then the result typically doesn’t end up that well.
Should the breakdown in the paper markets of gold/silver occur like I think will happen, I’m certain the price of the actual underlying asset will more than go up just a little bit…
I don’t see how investing in gold stocks or the miners is a hedge against a breakdown in paper? Unless you possess the actual metal you own paper, right?
quote:
Originally posted by mcvlboundquote:
Originally posted by SchoolsOut1quote:
Originally posted by skinneejYeah, as you can see, precious metals are a good place to “park” money assuming you get it at a reasonable price. The dollar just erodes over time, but if you get a commodity at a fair price, then it theoretically will hold it’s value over time. That being said, just like anything, if you buy low and sell high, you make money, but if you pay too much, you lose money. The chart says it all… If you are buying gold near historically high prices, then the result typically doesn’t end up that well.
Should the breakdown in the paper markets of gold/silver occur like I think will happen, I’m certain the price of the actual underlying asset will more than go up just a little bit…
I don’t see how investing in gold stocks or the miners is a hedge against a breakdown in paper? Unless you possess the actual metal you own paper, right?
Miners mine actual metal, not paper. Should the actual asset (metal) break from the paper game the, sometimes estimated, ratio of 100 paper ounces to 1 actual ounce of said metal would break down and the price of the underlying (real) asset would rise (since, basically, what was once thought of as a supply of 100 is now only 1). So, miners that have a good biz plan would reap the rewards of a higher priced metal. Make sense?
Edit to add: Buying min
quote:
Originally posted by CaptFritzquote:Lots of speculation in that last post. "Should" "Like I think" "I'm Certain" "just a little bit" You haven't skipped a beat with this stuff. Did the Hulltruth not appreciate your input?
Originally posted by SchoolsOut1quote:
Originally posted by skinneejYeah, as you can see, precious metals are a good place to “park” money assuming you get it at a reasonable price. The dollar just erodes over time, but if you get a commodity at a fair price, then it theoretically will hold it’s value over time. That being said, just like anything, if you buy low and sell high, you make money, but if you pay too much, you lose money. The chart says it all… If you are buying gold near historically high prices, then the result typically doesn’t end up that well.
Should the breakdown in the paper markets of gold/silver occur like I think will happen, I’m certain the price of the actual underlying asset will more than go up just a little bit…
’
Down here is where a signature goes but they can confuse and anger some people so I don’t have one.
It is speculation…it’s my opinion on what will happen. Obviously, nothing is a “sure thing,” but the entire point of “investing” or risking any money is simply because of the belief that it will produce a positive return.
quote:
Originally posted by SchoolsOut1quote:
Originally posted by mcvlboundquote:
Originally posted by SchoolsOut1quote:
Originally posted by skinneejYeah, as you can see, precious metals are a good place to “park” money assuming you get it at a reasonable price. The dollar just erodes over time, but if you get a commodity at a fair price, then it theoretically will hold it’s value over time. That being said, just like anything, if you buy low and sell high, you make money, but if you pay too much, you lose money. The chart says it all… If you are buying gold near historically high prices, then the result typically doesn’t end up that well.
Should the breakdown in the paper markets of gold/silver occur like I think will happen, I’m certain the price of the actual underlying asset will more than go up just a little bit…
I don’t see how investing in gold stocks or the miners is a hedge against a breakdown in paper? Unless you possess the actual metal you own paper, right?
Miners mine actual metal, not paper. Should the actual asset (metal) break from the paper game the, sometimes estimated, ratio of 100 paper ounces to 1 actual ounce of said metal would break down and the price of the underlying (real) asset would rise (since, basically, what was once thou
quote:
Originally posted by mcvlboundquote:
Originally posted by SchoolsOut1quote:
Originally posted by mcvlboundquote:
Originally posted by SchoolsOut1quote:
Originally posted by skinneejYeah, as you can see, precious metals are a good place to “park” money assuming you get it at a reasonable price. The dollar just erodes over time, but if you get a commodity at a fair price, then it theoretically will hold it’s value over time. That being said, just like anything, if you buy low and sell high, you make money, but if you pay too much, you lose money. The chart says it all… If you are buying gold near historically high prices, then the result typically doesn’t end up that well.
Should the breakdown in the paper markets of gold/silver occur like I think will happen, I’m certain the price of the actual underlying asset will more than go up just a little bit…
I don’t see how investing in gold stocks or the miners is a hedge against a breakdown in paper? Unless you possess the actual metal you own paper, right?
Miners mine actual metal, not paper. Should the actual asset (metal) break from the paper game the, sometimes estimated, r
quote:
Originally posted by SchoolsOut1quote:
Originally posted by mcvlboundquote:
Originally posted by SchoolsOut1[quote]Originally posted by mcvlbound
[quote]Originally posted by SchoolsOut1
[quote="
I don’t know, maybe I just don’t get it. To me if the paper market for gold breaks down,it’s entirely possible that the price of the metal could fall due simply to lack of real demand.
The paper markets provide millions of investors the opportunity to invest in gold, which in turn affects the price. In a time of real crisis, if the markets really break down, will gold values increase or decrease? It’s still up to supply and demand.
I trade in and out of the gold miner etf’s GDX and GDXJ, but to me they are not buy and hold investments because of the risk and volatility.
On the other hand one of my favorite long term buy and holds is a stock that produces and sells a single commodity like the miners do…eggs.
Compared to Gold and the Gold Miners, Cal-Maine’s eggs wins hands down over the long term, and that’s without factoring in the 1/3 of profit every quarter that they pay as a dividend.[img"]
Originally posted by skinneej
[/quote]http://i222.photobucket.com/albums/dd152/mcvlbound/CALMvsGLD.jpg[/img]
I think you are confusing a few things…
Let me put it like this. Say there is one egg in existence, however, 100 people want that egg. Well, you can’t sell 100 people the same egg unless you create paper claims
Look at the charts I posted for the COMEX showing claims per available ounce…that is (well, was) the “physical” shop…bars eligible for delivery are something like 400oz bars, not an American Eagle or Krugerrand…
The COMEX has basically become a bucket shop of sorts where little physical trading takes place any more. That type of operation has gone to the East and is the SGE (Shanghai Gold Exchange).
Oh, look at the chart showing “Silk Road Demand”
Notice that there are many months in recent past where demand is more than global production. The metal is coming from somewhere and heading East. Eventually, there will be no more metal to help satisfy demand (if things stay like they are and have been going)…what happens to price of metal when more demand than supply occurs?
How does the price of something fall when more demand than ever is present? Things just don’t “square up” to me.
quote:
Originally posted by SchoolsOut1Oh, look at the chart showing “Silk Road Demand”
Notice that there are many months in recent past where demand is more than global production. The metal is coming from somewhere and heading East. Eventually, there will be no more metal to help satisfy demand (if things stay like they are and have been going)…what happens to price of metal when more demand than supply occurs?
How does the price of something fall when more demand than ever is present? Things just don’t “square up” to me.
The expected future production will cover the gap. Futures for commodity based items are typically for goods yet to be produced. Isn’t that how the producing companies hedge themselves for production cost vs. being speculative? In theory, you could write long dated futures for the entire reserve of a mine and that would be good for the mining company wouldn’t it, as they could use the prepaid monies to fund production?
The basic difference is selling gold above, or below ground…
RBF
It used to be a price setting tool for people that actually bought/sold the metals…now, it’s just a paper playground with very little metal passing through it compared to the grand scheme of things…
The opening of the Shanghai Gold Exchange should be a good test of your theory.