Long Position on Silver and Gold?

[HoneyBadger]

My Natural Gas futures have gone in the toilet over the last two weeks... Bummer. I'm in for a long haul, but I suspect that this big drop is directly related to the drop in oil prices.

[Grizzly Firearms]

The traditional valuation of silver to gold is 1:15 (gold prices should be 15 times higher than silver) based on the raw amount of resources available globally. The current price of gold is $1209 / oz, silver is $16.64 / oz. That's a ratio of 73:1.

So... Either silver has a lot of appreciation potential, or gold has a lot of depreciation potential. The reality is probably somewhere in the middle, but I would bet that silver will rise and gold will hold the $1000 price point. And I have heard that the Chinese are buying up tons of silver, which should cause price appreciation because silver is used in so many different applications globally.

I would say being long silver is a good bet. Not so confident in gold holding the $1200 price point....

[roberth]

This is one of the results of QE in China....hmmmmm same thing happened here. Gee I wonder why they did it. /sarc.

http://www.zerohedge.com/news/2014-1...rading-doubles

A funny thing happened in China in July. Ever so quietly, and with little aplomb, the PBOC unleashed CNY 1 trillion of 'Pledged Supplementary Lending' (PSL) to China Development Bank - later dubbed "QE-Lite." Economic indicators temporarily blipped higher, a new recovery was proclaimed by the masses, and the world fell back into its stupor... despite the post-credit-impulse hangover which has seen Chinese data collapse in the last 2 months. But that did not stop speculators... tired of betting on Chinese real estate (which never goes down), the 'signal' of QE has sparked a stunning 41% surge in Chinese stocks since PSL (and boosted by the recent rate cut).

[BushMasterBoy]

Silver just had the biggest price rise in its history over the last weekend. Over 17%! Coincided with a referendum in Switzerland to back 20% of all bank deposits with gold. The vote failed.

[roberth]

Silver just had the biggest price rise in its history over the last weekend. Over 17%! Coincided with a referendum in Switzerland to back 20% of all bank deposits with gold. The vote failed.

Percentage wise yes but that bit of news is meaningless b/c silver was so low to begin with. It is easy to exceed previous upticks in percentage when the basis is low.

The Swiss caved to their central bankers...gold and sliver have no value, just ask any central banker.

[roberth]

...and after being down nearly 100 points earlier today the DOW is in positive territory partially based on this little gem from the European Central Bank.

• *ECB SAID TO PREPARE BROAD-BASED QE PACKAGE FOR JANUARY MEETING

http://www.zerohedge.com/news/2014-1...ew-record-high

[roberth]

PMs up this morning, USD/JPY lost 2 points, oil is up a tic.

http://finviz.com/forex.ashx

[davsel]

Interesting:
http://pro.moneymappress.com/MMRBSSH...=302370&h=true

[roberth]

PMs stayed up all day, they're kinda flat on the World Spot now.

[sellersm]

Here we go, starting to mess with retirement plans! http://www.msn.com/en-us/money/retir...Aimc?ocid=iehp

Snippet:

A bipartisan group of congressional leaders reached a deal Tuesday evening that would for the first time allow the benefits of current retirees to be severely cut, part of an effort to save some of the nation’s most distressed pension plans.

The measure, attached to a massive $1.01 trillion spending bill, would alter 40 years of federal law and could affect millions of workers, many of them part of a shrinking corps of middle-income employees in businesses such as trucking, construction and supermarkets.