Long Position on Silver and Gold?

[sellersm]

My guess is that it won't go down much further, perhaps it will hit in the $18's, but not stay there for long.

Today, China announced that it wants to start doing oil deals in NON-USD currency. And other announcements are going on right now... Why isn't the PM market responding? Yep, that's right, to keep the USD afloat and perpetuate the charade that 'all is well' on Wall Street...

Remember, buy LOW and sell HIGH!

[sellersm]

I am literally just waiting until the FED starts to taper the QE bond buying BS, which I expect will falsely make the USD go up, therefore PM's will drop.... As soon as they make the announcement, watch PM spot prices and be prepared to buy.... at least that's my strategy for the next month or two. Anyone agree/disagree?

You did hear what Yellen has said, right? There'll be no limit to the QE. Just as there's no limit to the debt ceiling right now. They'll continue to suppress the PM prices, allow China to continue to hoard it all, and then when all the 'fat cats' have had enough, they'll let it come crashing down.

It's my belief that they already have a new world currency, it's all agreed upon, they're just waiting for the right time to introduce it to the world...

[Dave_L]

I hope they wait a while longer so I can buy some more PM's.

[Sawin]

My guess is that it won't go down much further, perhaps it will hit in the $18's, but not stay there for long.

Today, China announced that it wants to start doing oil deals in NON-USD currency. And other announcements are going on right now... Why isn't the PM market responding? Yep, that's right, to keep the USD afloat and perpetuate the charade that 'all is well' on Wall Street...

Remember, buy LOW and sell HIGH!

Is that China news actually new from today? I recall hearing something about that at least a few weeks ago, and very strangely it didn't get much press and the markets didn't pay much attention... BS anyone? I agree the suppression of PM's is 100% real and we should all be taking advantage of it, but I'm just not convinced this is the bottom yet. I am hoping for it to dip in to the low teens, but I could be wrong.

[Sawin]

You did hear what Yellen has said, right? There'll be no limit to the QE. Just as there's no limit to the debt ceiling right now. They'll continue to suppress the PM prices, allow China to continue to hoard it all, and then when all the 'fat cats' have had enough, they'll let it come crashing down.

It's my belief that they already have a new world currency, it's all agreed upon, they're just waiting for the right time to introduce it to the world...

Yes, I know there is no "limit" per say, but I believe that is only being stated so the "end" of QE (yeah effing right!) isn't predictable and the prospect of tapering is not priced in ahead of time... There is still a lot of discussion of slowing monthly bond buying, but who knows if it'll ever happen? It seems to me that if it does, the prices of PM's should go down more, albeit temporarily, at which point I'm going to buy a lot of it. There really have been some claims it will be in single digits... who do I believe? Everyone and no one at the same time I guess.

[Sawin]

I hope they wait a while longer so I can buy some more PM's.

Me too.

[sellersm]

Is that China news actually new from today? I recall hearing something about that at least a few weeks ago, and very strangely it didn't get much press and the markets didn't pay much attention... BS anyone? I agree the suppression of PM's is 100% real and we should all be taking advantage of it, but I'm just not convinced this is the bottom yet. I am hoping for it to dip in to the low teens, but I could be wrong.

Well, perhaps it was yesterday. The feed I saw was dated today, but the source was yesterday's article:

http://www.bloomberg.com/news/2013-1...-reserves.html

This one's today:
http://www.reuters.com/article/2013/...0J62M120131121

[sellersm]

Take a look at this: http://kingworldnews.com/kingworldne...In_London.html

And here's a quote from another of King's articles:

“And in the period into 2008, when the dollar was going down, that was most evident in the upward move of gold against the dollar. But what most people seem to forget is that gold was going up against all of the other paper currencies then as well.

So our view is that while the dollar may shift in its pecking order within the paper currency world, and outperform a lot of the other majors and possibly a lot of the emerging market currencies, we still believe that over the coming years we are going to see gold outperform paper and outperform the dollar.



We just believe that gold will outperform the euro, the yen, and other currencies more. The trouble right now is not so much to the dollar trade because at the end of the day the dollar is higher than it was on the US Dollar Index in 2009, but so is gold.



The issue for gold is that if you look back to after the first impulsive move higher in gold in the early 1970s, when we got the correction into 1976, when gold came off 44% before going significantly higher, gold struggled to rally as the equity market made its recovery after the 1973/1974 crash. So while gold is just consolidating at the moment, we still believe that it’s formed a base here around this $1,180 level, but its ability to move significantly higher is compromised as long as the equity market continues to do well.



At a point in time where the equity market finally does struggle, and it will happen, that is going to be the point where gold will really start to come into its own once again. But as we saw into 1976, when the equity market was performing well, it’s going to be very difficult while this is happening in equities to see a significant push up in the gold price.”

[hatidua]

“And in the period into 2008, when the dollar was going down, that was most evident in the upward move of gold against the dollar. But what most people seem to forget is that gold was going up against all of the other paper currencies then as well.
So our view is that while the dollar may shift in its pecking order within the paper currency world, and outperform a lot of the other majors and possibly a lot of the emerging market currencies, we still believe that over the coming years we are going to see gold outperform paper and outperform the dollar.


We just believe that gold will outperform the euro, the yen, and other currencies more. The trouble right now is not so much to the dollar trade because at the end of the day the dollar is higher than it was on the US Dollar Index in 2009, but so is gold.


The issue for gold is that if you look back to after the first impulsive move higher in gold in the early 1970s, when we got the correction into 1976, when gold came off 44% before going significantly higher, gold struggled to rally as the equity market made its recovery after the 1973/1974 crash. So while gold is just consolidating at the moment, we still believe that it’s formed a base here around this $1,180 level, but its ability to move significantly higher is compromised as long as the equity market continues to do well.


At a point in time where the equity market finally does struggle, and it will happen, that is going to be the point where gold will really start to come into its own once again. But as we saw into 1976, when the equity market was performing well, it’s going to be very difficult while this is happening in equities to see a significant push up in the gold price.”

I had an agent back in the 90's that was thoroughly adept at long rambling conversations in which absolutely nothing of substance was conferred. I can't be positive, but I'm more than a little convinced she wrote that.

[sellersm]

Today, Rick Rule said:

It is completely consistent with gold’s trading in the past that this has been a cyclical decline in a secular bull market. Remember, from 1974 to 1976, in the midst of the most historic run in gold in my memory, where gold went from $35 to $850 an ounce, in the middle of that epic run there was a decline from $200 an ounce, to $100 an ounce. People who didn’t have the courage or the cash to stay the trade in the 50% decline, missed an 850% 4-year run. Investors can ignore that at their own peril.”