Silver And Gold Remain Near Record Highs As Greek And Portuguese Debt Hammered

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sudden Debt's picture

just wait untill the UK get's back into the picture.

If they don't raise rates soon, they are going to be the first to have to hyperinflate their currency and if they do raise rates all their banks go bust.

 

RATES NEED TO GO TO 18.5% TO STOP THEIR INFLATION!!

 

Harmonious_Dissonance's picture

All paper currencies to zero! Big reset button PUSHED!

EscapeKey's picture

The (Deficit/Tax_Intake) picture for the UK is not too bad (150/550), when comparing to the US (1600/2200), but it is absolutely imperative that housing doesn't take a deep decline, or the UK is toast, hence the reason British monetary policy has been executed the way it has for the past few years.

Of course, at best it still only postpones the inevitable for a few months. Once realistic budget cuts are carried out, we can at best look forward to a repeat play of the wonderful socialist 70'es (strikes, 3-day workweek, shortages, electricity outages, garbage mountains everywhere...)

British inflation in the 70'es peaked at 24.9%. How far off is hyperinflation?

Sudden Debt's picture

I propose you read these 2 articles, and tell me if you still feel confident afterwards :

http://www.marketoracle.co.uk/Article26766.html

http://www.marketoracle.co.uk/Article26765.html

EscapeKey's picture

...eh, I'll report back to you when I've read linked book-sized articles.

As for feeling confident - no, I don't. Confidence in system doesn't resonate with physical precious metals investing. I was merely pointing out that the UK isn't in as tough a situation as other countries, notably the US.

Btw, SD, I notice you constantly get junked for just about anything you post. You seem to have your own personal troll!

Sudden Debt's picture

FANS!!

I SHOULD SELL MERCHANDISE!!

 

 

ZakuKommander's picture

Junking for SD is largely a Fleming v. Walloon thing.

IQ 145's picture

 He, he, he,. that's a good one. it's going to go over most peoples head, tho.

Math Man's picture

"I'd be wary about getting into gold at present. The price may still rise further, but the gains are unlikely to be so significant. When prices fall, it is those who got in near the end who will suffer the biggest losses."

Have fun with your losses, bitchez!!!!!!

 

EscapeKey's picture

Well, then you must be a fool for not shorting, right?

Are you shorting?

Math Man's picture

Yes.  SLV, GLD and USO...

EscapeKey's picture

Well, excellent, then all we can do is wait, right?

tmosley's picture

You are the only loser here, then.

Enjoy your bloody stumps, knife catcher.

Math Man's picture

Last time I went short USO, I made enough to buy a new Ferrari....

 

EscapeKey's picture

Hahahahahahaha

That's about the most credible post I've ever seen of yours.

Sudden Debt's picture

HAHAHAHA!!

You sound like a 5 year old :)

 

 

tmosley's picture

lol, sure, so it worked once, it must ALWAYS work, right?  Nevermind that timing is everything, and if you are off by just a bit, you will get a margin call, and find yourself fucked.  You know, sort of like how you have been losing on your gold and silver shorts.

What kind of moron shorts ANYTHING in terms of dollars while QE is going on?  What kind of moron goes short oil when protests are spreading throughout the Middle East, including Saudi Arabia and Kuwait?

Oh yeah, your kind of idiot.  Enjoy your depreciating shit.

Math Man's picture

I'm buying puts, so my downside is capped.  All I can lose in the premium.

You can lose EVERYTHING holding 95% in one asset.

Have fun with your 95% silver allocation.

Just FYI, silver quickly hit $9 in 1981.

And then fell to $4.98 in June 1982.

 

tmosley's picture

Right, when interest rates rose to 20+%.  You think that is going to happen again?

Sorry, loser boy who does nothing but lose, but it looks like you are going to lose some more.

I've been long silver since $8.  My cost average is around $15-16.  I, unlike you, am a winner. 

Math Man's picture

But what was the RELATIVE increase in rates...  going to 20 from 10 is not as bad as going from 0.25% to 3%.

Watch out.

tmosley's picture

lol, you keep thinking that.

EscapeKey's picture

I liked your Ferrari joke better.

Strider52's picture

You have been Sheened. Not Junked, Sheened.

Harmonious_Dissonance's picture

but, but, how much does it cost to dig it out of the ground?

IQ 145's picture

 Are you shorting? yes, SLV, GLD. I don't believe you, nobody is that crazy. If that's for real, post the details, date and price and stops etc. so we can follow the trade.

bobby02's picture

Slightly off-topic, but do you (or anyone else) have a source for details on Green Light taking delivery on GLD? In the 2Q09 letter, Einhorn writes that he "switched" GLD for metal. I also took that to mean delivery, since selling shares and buying metal is costly and would defeat the purpose (i.e. so he would pay lower fees). However, it is less than definitive.

Math Man's picture

Here is a bloomberg article:

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a16aPkJLxw0w

You can also google search and find a copy of the quartely letter where he discloses the transaction.

He had an AP redeem the shares for the underlying physical on his behalf because he could store it for less than the 40bps in fees that GLD was charging.  Any large holder can do this with GLD or SLV because they are backed by ALLOCATED metal.

bobby02's picture

I have the letter. It says "switched," hence the quotation marks in my original post. Nothing else, no detail. And your Bloomberg article just quotes the same letter without adding any more information.

Don't get me wrong, I belive APs create/redeem baskets all the time (witness the changing amount of Au/Ag held), it's just the lack of detail is strange.

HoofHearted's picture

Those losses are just kicking my ass. Sorry to have bought gold at $1000 per and silver at more like $15 per. Sure, I've cost-averaged myself up to the $1100 and $20 per ounce range, but I'll just have to live with myself.

And we math people still want you to take away your ZH name. You obviously don't do any kind of math at all or else you'd realize what monetary inflation brings on. (Yes, some of us have degrees in both math and econ, which uses a lot of applied math. Which training is it that you are missing? Both?)

Temporalist's picture

Jeffery stop wasting your and everyone else's time here.

RogueFit's picture

Math Man, may I ask why you are so convinced that gold/silver will fall precipitously?  I have been meaning to ask you for a few days now.

Beau Tox's picture

"Cast not thine keyboard strokes toward ignorant fools."

 

Snidley Whipsnae's picture

++++++++++++++++++++++++++++++

LOL

bullionbaron's picture

I hope the ZH article on the link between Silver sales and US Mint calling for suggestions on circulating coin materials is simply tongue in cheek.

There is no correlation between the two bits of infomration. Seems ludicrous to keep pumping it. It's not news, it's misinformation.

Snidley Whipsnae's picture

You are misinformation if you truly believe what you posted.

bullionbaron's picture

You honestly believe that there is a link between the American Silver Eagle sales and a press release for suggestions on metal types for CIRCULATING coins?

Last I checked the ASE is a bullion product, not a circulating coin.

I thought the post by TD might have been a parody/tongue in cheek, but the repost in this thread makes me wonder...

Seriously, anyone who believes the lack of Silver sales posted has something to do with a completely unrelated press release has rocks in their head.

johnQpublic's picture

so you therefore posit that the US has sold no silver eagles this month because there is no demand?

and who has rocks in their head?

you didnt happen to see the new commemorative bronze coin did you?

 

leave the bullion to us and stick with the baroning

dummy

bullionbaron's picture

I would suggest they have sold ASEs however the figures are yet to be updated.

They are updated intermittenly from my monitoring of the site over the last several months.

Here's another unrelated event: Sheen got fired from Two and a Half Men, maybe that also has something to do with the US Mint ASE Sales page not being up to date!! /rolleyes

Bay of Pigs's picture

Hey smartass, maybe you should verify some facts before you open that pie hole of yours?

mrgneiss's picture

Give the guy a break, he's busy monitoring the site between mittens?

traderjoe's picture

Really, you don't see any connection at all? Needing to have to find alternative metals or methodologies because inflation has made the coins too expensive to make? No relation at all to the silver supply issues? The fact that the fiat has devalued to toilet paper? Yes, no correlation at all...

bullionbaron's picture

wow if that's the connection talk about drawing a long bow

Oops I see the US Mint has updated their site and they've now sold 668,500 in March... guess the next thing everyone here is going to tell me that is 1 days sales??

http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sal...

Ganja Jane's picture

 I wish I could 'Double-Junk' this.

baby_BLYTHE's picture

So it is totally impossible to grow our way out of this? (Serious here folks)

We really only have two choices?

(A) Deflationary Depression or (B) Hyper-Inflationary Destruction

Ratscam's picture

(C) haircut i.e. after Easter

highly unlikely, I prefer B then C on all global currencies

cswjr's picture

Barring unprecendented cooperation and coordination between the U.S. and China (think Marshall Plan, in reverse, and bigger), I'd say yes.  We might have had a fighting chance had we just let the financial crisis play out, but I think we've crossed the Rubicon now.

Snidley Whipsnae's picture

"Barring unprecendented cooperation and coordination between the U.S. and China (think Marshall Plan, in reverse, and bigger), I'd say yes."

Posted on ZH yesterday... China sending trade delegations to all parts of the world.

China might spend as much a $17 Billion on US products. (probably those products that they have yet to reverse engineer)

The US is running deficits of $223 Billion per month.

Does this sound like a 'Marshall Plan in reverse'?

EscapeKey's picture

Well, the UK grew out of a comparable situation when industrialization kicked in. And the US coupled growth with inflation to eliminate WW2 debts. Except for that, inflation has practically always been the weapon of choice to combat this situation.

Of course, this stuff isn't taught in school, because it it was, we wouldn't be sitting ducks waiting for the coming onslaught of inflation heading our way, and the government programs would be less efficient.

Anyway, I guess it comes down to us discovering a new, highly potent energy source. If someone could find a way to tap the vast potential of the highly potent bullshit government official information releases, I guess we're saved.

Snidley Whipsnae's picture

Yes, after WW2 the US opened up many US markets to British products and the Brits were not allowed to buy many products that they produced because all were destined for foreign shores...trade.

What really killed the Brit Empire was the loss of the Indian market, especially textiles. The Brits were importing cotton from India/Egypt and selling back to them finished textiles and clothing. In addition India was a market for Brit locomotives, railway rolling stock, autos, bicycles, motorcycles, etc...also India paid for Brit administration and engineering expertise. India sold the Brits tea that was raised on farms in India owned mostly by Brits. India was called 'the crown jewel in the British Empire' for good reasons.

Ghandi threw a monkey wrench in that one.