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SlowDownFast Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-06-08 02:03 PM
Original message
Hate to say "I told ya so.......".
Edited on Thu Mar-06-08 02:14 PM by utopiansecretagent
But I did:

http://www.democraticunderground.com/discuss/duboard.ph...

I'm surprised gold is holding up as well as it is - they can't seem to push it back under $950. It may happen still (correction), but rest assured the next run will bring us well past $1000 - AS LONG AS THE FED DOES NOT RAISE RATES.

For those who can't afford gold (they do sell fractional ounce American Eagles), silver works just as well - it may even severely outperform gold (percentage-wise) in the end. If I were still buying, I might pick up a little gold/silver at these prices and wait awhile for a correction before buying more - dollar cost average into it. If gold/silver drops significantly, don't fret - it will blow through old highs on it's next run - PROVIDED THE FED DOES NOT RAISE RATES. If you start hearing about them raising rates on the dollar - SELL, BABY, SELL - GO TO CASH. I don't think it will happen for quite awhile - the Fed just said today they need to keep the rates lower for quite some time to come.

Still in the market?

Commodities: gold/oil/agriculture (DBA, DBC, BOO). There are rumors of a coming commodities bubble/crash - don't believe it. Maybe in the fall or next year - still doubtful. Also, index short ETF's like the UltraShorts (SKF, QID, SRS, etc.) by www.proshares.com . Don't forget Bear Market mutual funds like BEARX, GRZZX, or MERKX. When in doubt, GET OUT.

Otherwise, CASH and Short Term (4-week) Treasury Bills via treasurydirect.gov:
http://www.democraticunderground.com/discuss/duboard.ph...

Don't forget to stock your pantries FULL.

edit: oh, yeah, this is for you HERETIC: I am NOT a financial advisor and the information contained herein is purely my opinion. FWIW. DYODD. ;)
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CGowen Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-06-08 02:09 PM
Response to Original message
1. Do we know how much the IMF is dumping? n/t
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SlowDownFast Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-06-08 02:16 PM
Response to Reply #1
3. Dunno.
Edited on Thu Mar-06-08 02:22 PM by utopiansecretagent
And it doesn't bother me, anyway. It'll be snatched up before it hits the floor, and won't affect prices for long if it does at all.

I'd refer to www.gata.org / or http://www.jsmineset.com / for questions on this.
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CGowen Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-06-08 02:33 PM
Response to Reply #3
4. I heard that other metals like silver are gaining more than gold,
I haven't looked into it, but maybe it has something to do with it.

I'm not sure and haven't looked at data.
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Warpy Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-06-08 02:42 PM
Response to Reply #4
5. Percentage wise, it is
but in dollars per day, gold is. Gold is volatile, though, while the climb in silver prices has been steadier.

It's already beyond Bunky Hunt's wildest dream. When it gets there indexed to inflation, I'll know it's time to sell the silverware I inherited but never use.
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SlowDownFast Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-06-08 02:46 PM
Response to Reply #4
6. Silver rides on gold's coat-tails.
It's already started outperforming gold in it's ascent. When the psychological barrier of $1000+ gold hits (already all over the news/CNBC) combined with Joe6Pack's crispy-burnt portfolio/401K and a declining dollar, most won't be able to afford gold's protection anymore. Thus, silver.

We could easily see $50+ silver by the end of this year.
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Art_from_Ark Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-06-08 08:26 PM
Response to Reply #4
11. Silver is lagging behind gold
Traditionally, silver was valued at a 16-to-1 ratio with gold (16 ounces of silver were equal in value to one ounce of gold). By the late 1800s, however, it became apparent that there were more than 16 ounces of new silver being mined for each ounce of new gold. By 1873, the silver in a silver dollar (0.72 ounces) was worth less than 80 cents, while the gold in a gold dollar was worth a full dollar. By the time of the Depression, one ounce of silver ($1.29 in 90% silver coin) was worth a mere 60 cents, while one ounce of gold was 34 times higher, at $20.67 (later increased to $35.00 in 1934).

By the mid 1960s, silver was making a comeback, approaching the magical $1.29/ounce level that would make the silver in 90% silver US coins equal to the face value of the coins, while the official price of gold was still $35/ounce (a 27-to-1 ratio at that time). When all restrictions to gold bullion ownership were lifted in 1974, the price of gold rose above $200/ounce, while silver languished at $4-5 per ounce (roughly a 40-to-1 ratio). The silver price started to rise, and by the 1980 peaks ($50 for silver and $850 for gold), the ratio had come very close, if just for a blip in time, to the traditional 16-to-1 ratio. But that didn't last long, as by the end of the 1980s silver was back at $4-5 per ounce, while gold, for the most part, was in the $200s-300s range (with a ratio of more than 40-to-1 again).

Now gold is approaching the $1000 level, and silver has just now broken the $20 level, so the current ratio is a little less than 50-to-1. Who knows what will happen now-- maybe silver will come back to its modern ratio of 40-to-1, maybe not. It's called the "poor man's gold" and has some attraction for small-time investors in that respect. But the big players seem to prefer gold.
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A HERETIC I AM Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-06-08 02:15 PM
Response to Original message
2. You go, dude!
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SlowDownFast Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-06-08 03:17 PM
Response to Reply #2
7. I AM, DUDE!
Edited on Thu Mar-06-08 03:18 PM by utopiansecretagent
Just made $10,000 today shorting the Russell and RIMM !

:smoke:
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A HERETIC I AM Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-06-08 03:28 PM
Response to Reply #7
8. Cool! I'll have a Martini with a Stella back.



You ARE buying, aren't you?
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Trailrider1951 Donating Member (933 posts) Send PM | Profile | Ignore Thu Mar-06-08 04:11 PM
Response to Original message
9. Wise advice, but you forgot one thing
Have you planned your vegetable garden yet? Spring will soon be here....
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SlowDownFast Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-06-08 05:45 PM
Response to Reply #9
10. Bought all last years seeds they had cheap at the feed store the other week.
Edited on Thu Mar-06-08 05:46 PM by utopiansecretagent
They'll be fine for this year. Buying more this month when they re-stock.

Stockpiling 50lb bags of hard red winter wheat, beans, rice, and sealing them in mylar bags with oxygen absorbers.

Have 10 rural acres that I will plow this spring with grand dad's old blue 68 Ford 2000 that I brought over from the OTHER 80 acre bugout I own 45 miles away. Have a 500 gallon fuel tank I'm fixin to fill (adding fuel preservative) soon as the price of oil takes another dip.

Building a wind turbine from scratch (I have working plans/parts/rare earth magnets from a turbine builder in Colorado who knows his shit) on a 100 ft tower feeding a HD forklift battery bank.

Yep, lots of work to be done. Too much snow right now, but I'm gettin' ready.







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