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The message the market is sending to Bernanke is melting up with each passing day.
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I got into SLV last week. Looking at a 3 Month chart of GLD and SLV , SLV is the sleeper/keeper . It's advanced from 12.38 to $18.40
In the same period GLD has advanced from $91 to $112.00.
I don't have a firm conviction either way. If this is a bubble, fine, I'm ready to ride with stops. If all the arguments for GLD are true , there is even more of a case to be made for silver as it has many industrial uses and there is a real shortage. So I'm leaning towards SLV right now. Today it's up 1.4% while GLD is up 0.53%. That's been happening almost each up day for the last week as SLV has gotten some media exposure. .
Is it late to get into SLV train?
The 4 G's
God, Gold, Guns and the Government WILL Katrina it.
Mr. Bernanke knows what he is doing. This is nothing more or less than a controlled demolition of the financial system. He even knows that everybody else knows it. That's why all this is so ridiculous.
does he know that we know that he knows?
Gold plated tungsten?
I've been buying 1 oz Krugerrands, Eagles, etc, as well as 1 oz bars produced and packaged by Credit Suisse and PAMP. All have been purchased from a reputable dealer in the business for over forty years.
SERIOUS QUESTION - When do we have to start worrying about counterfeit gold in the 1 oz size? And if that time is now, how do we go about verifying that the gold we buy is genuine without an actual assay of it?
When i converted 10 oz to eagles I didn't check them. When I converted my last 10 oz to krugerands. I checked them all for weight size thickness and resistance. PURE gold. but coins are not as pure as bars but I couldn't get any 1 oz bars.
I prefer the bars, but since they are packaged I suppose the coins are a lot easier to check for weight/size/thickness/resistance.
Since I've always trusted my dealer over the years, I've never done any of this with the gold I've purchased.
That changes as of today. I will check all future purchases.
And since my average cost is in the mid $400 range, I'm in the mood for more.
The market are sending a message indeed- "we are still herds ruled by greed and fear. We are still willing to cram into speculative imbalance as we believe we are able to predict the future."
HOW do I know that gold/silver have a LONG ways to go in this Generational Bull Market?
Easy...
I just read the comments of virtually totally clueless investors who THINK that they understand the gold/silver markets, but do nothing more than regurgitate the same old tired comments. They THINK that they understand because they apply the same metrics from their analysis of equities.
All of the boards/forums/rooms are full of all the same crap. "When the U.S. Peso reverses, gold will lose a ton!" and blah, blah, blah.
It is because the typical investor knows NOTHING about the gold/silver markets and REFUSES to take the time to STUDY these UNIQUE markets that they have MISSED this entire bull run from 2000/2003.
Yup! We have a LONG, LONG, LONG ways to go and when we get there, the typical American won't even be able to dream about purchasing gold, as it will be well beyond his/her level of affordability. These people will then attempt to buy silver.
All of the SMART/BIG money will already be well-invested in both metals.
To the 95% who are still CLUELESS, "See Ya At The Top!"
Says Mish today: Economist Brad DeLong, Department of Economics, U.C. Berkeley, is getting increasingly pessimistic. DeLong says: Chance of Great Depression Now 5%...
Excerpt from DeLong:
“For 2 1/4 years now I have been saying that there is no chance of a repeat of the Great Depression or anything like it--that we know what to do and how to do it and will do it if things turn south.
”I don't think I can say that anymore. In my estimation the chances of another big downward shock to the U.S. economy--a shock that would carry us from the 1/3-of-a-Great-Depression we have now to 2/3 or more--are about 5%. And it now looks very much as if such a shock hits the U.S. government will be unable to do a d----- thing about it.”
http://globaleconomicanalysis.blogspot.com/
The 5% is meaningless. The main message here is that DeLong wants to be off the hook for closing the door on a possible Great Depression.
Asks Mish: Who's To Blame?
”DeLong is blaming Democrats and Republicans for not wanting to spend enough. He is right about the increasing odds, yet he is badly misguided as to the the reason why.
”The problem is debt. One does not cure a debt problem by going deeper in debt. We should have let failed banks actually fail instead of making zombies out of them. We are repeating the very same mistakes Japan made, and ironically Delong wants to to make the same mistakes only much bigger.
”Sadly, that is how Keynesian economists think.”
In retrospect, I don't think we are headed to be the new Zimbabwe.
Rather, the New Japan.
All the major banks (C, BAC, WF) will be Zombie Banks kept alive only with continuous govt. support and intervention. The same goes for what remains of our industrial base that has not already moved to China.
The next candidates for "Zombification" will be the regional and smaller banks, which will fail because of their CRE exposure. Continuous failure of smaller banks will lead, I think, to government-sponsored "super-regionals" designed from the outset to function only with government life support.
Outcome? 15-22% unemployment will be the "new normal". Any employment "recovery" by US firms will be felt mostly in China and India as "offshoring" and "outsourcing" become the norm for smaller and mid-size businesses as well.
But not all of this will be bad. The new emphasis in education will be on developing artisan, craft or professional skills that can be exploited profitably in a barter or simple trade economy. Folks living in rural areas where food can be grown and fuel harvested will have a huge survival advantage over white-collar, mid-upper class "symbolic analyst" types on the coasts.
Watch for a quiet movement away from "fiatsco" currency as more and more goods and services will only be available through barter or specie. Watch for Krugerrands and Maple Leaves becoming underground media of exchange. Most stores will post two prices for goods - one price in fiatscos, another in Krugers or Leaves.
And the gubmint won't be able to do anything about it.
Right now, I'm investing in physical gold (store of wealth) , tradable gold and silver (media of exchange), and making sure that the small-arms locker is full, and the Dry Stores locker has 6 Mos. of canned/dried foods on hands at all times.
If it's handled right, we can go back to a 19th-century pre-industrial economy fairly peacefully, and become a relatively stable third-world country.
KptLt. laughing swordfish
9er Unterseeboote Flotille
The worst part about Kunstler's "Hand Made World"? Kunstler is in it. Beware of people who saw it coming and think that makes them special.
Japan will be the next Lehman Bros.
When it defaults, we default.
Now who's too big to fail?
russia didn't cease to exist, when they collapsed. but organized crime , will keep them from achieving any prosperity in the future. Is that what we have to look forward to? the marriage of organized crime, and government, as an accepted reality?
It already is accepted reality...the public apology from head squid admits to doing bad things, wrong things, and they knew it...and why is he not in jail? Why is the FBI not investigating?
This is just in from GATA
http://www.gata.org/node/8044
French bank tells clients how to prepare for 'global collapse'w.t.f.
http://www.freakingnews.com/pictures/51500/Kiss-Your-Ass-Goodbye-51770.jpg
lol, clarification much appreciated...
From Societe Generale nonetheless...
The mounds in my yard aren't just for moguls anymore.
yiiiippeeeeeeeeee!!!!!!!!!!!!!!!!!