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Guest Post: Gold And Silver: We Were Right – They Were Wrong

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Mon, 07/25/2011 - 10:35 | 1490387 baby_BLYTHE
baby_BLYTHE's picture

Not to own any Gold, is to trust a central banker- Marc Faber

Back when Gold just crossed 1,000 per oz he said it would never fall below that level again.

That is when I bought the majority of my PMs. Best investment advice I ever received

Mon, 07/25/2011 - 10:37 | 1490397 GetZeeGold
GetZeeGold's picture


That is when I bought the majority of my PMs. Best investment advice I ever received

 First bought at $273......went in 2008 during the crisis at $700.

When your eyes are screaming at you....you have to act.


Mon, 07/25/2011 - 10:42 | 1490416 redpill
redpill's picture

Oldgay Itchezbay!


Mon, 07/25/2011 - 10:51 | 1490452 nope-1004
nope-1004's picture

The fact that silver and gold need to be beaten down with such fervor is evidence enough to me that the banksters are intent on printing their way into oblivion.

Vote with your money.  Buy PM's.


Mon, 07/25/2011 - 11:42 | 1490654 Harlequin001
Harlequin001's picture

Ok, so when does the buyer ever dictate the market price?

Just a quick question, because when does a price plunge mean that I have to sell?

The big problem for the state sponsored ponzi is that if my price to sell is say $10,000/oz then that is the price that I will sell my PM's at, and I reserve the right to raise it or lower it at my discretion. It matters not one jot what happens to the gold price in the interim, that's my price to sell. One day I'm sure that the chief idiot in charge will realise that manipulating the futures price has no impact on my willingness to hold precious metals other than that I will buy more if the price is manipulated lower.

The problem is the income tax. If these guys were right about one thing it is this, 'Next, austerity measures WILL be instituted, while taxes WILL be raised considerably, and quickly. The federal government is not going to shut down. They will instead bleed the American people dry of all remaining savings in order to continue functioning,' but if I really needed the advice of an investment pundit I would say 'thanks but no thanks' to Alt Market and choose one that could actually read financial markets and wasn't more than 5 years late to the party...

Mon, 07/25/2011 - 15:33 | 1491615 snakeboat
snakeboat's picture

The past is past.  If your teenage child were to have $1,600 in savings today, would you point her towards a shiny coin, or digits in a bank's computer?  I know my grrl is being guided (by me) towards shiny metal.

Tue, 10/04/2011 - 08:50 | 1736599 BrianN
BrianN's picture

With today problem of US dollars printing to help the economy, it's more actual and appropriate to save your economy in hard precious metals like bijuterii argint silver and gold rather than some paper moneys that have no real value.
As a big US economist said, gold is the currency that will never be someones debt. Try to keep your long-term savings in precious metals and not in common currencies.

Mon, 07/25/2011 - 11:05 | 1490509 Ray Elliott
Ray Elliott's picture

Oldgay illway ithay ivefay 000 oonsay.

Mon, 07/25/2011 - 11:31 | 1490605 Boba Fiat
Boba Fiat's picture

Did you say, "Old gay bitches"? 

Mon, 07/25/2011 - 14:35 | 1491335 Inibo E. Exibo
Mon, 07/25/2011 - 10:46 | 1490435 baby_BLYTHE
baby_BLYTHE's picture

yeah, well I was only around ten years old then. My allowance money only went so far.

Did however receive some high yielding treasury bonds when I was an infant that paid out pretty nicely at maturity.

Mon, 07/25/2011 - 11:02 | 1490499 Cognitive Dissonance
Cognitive Dissonance's picture

I love ya baby_BLYTHE......but you're still incredibly young. Nothing wrong with that, except that we all tend to think we are older and wiser than we were yesterday or yesteryear. That is not always the case, though you seem to be making an exception to that rule. :>)

Just remember that we always supply our own confirmation bias whenever we need or want it. And keep saving that allowance, even if it's just you who are giving it to yourself. Pay yourself first, then everyone else. 

Mon, 07/25/2011 - 12:35 | 1490873 DoChenRollingBearing
DoChenRollingBearing's picture

CogDis is right.  The first time I walked into a real casino, I won.  That wound up costing me a lot more in later on...  Hey!  Those guys CAN play poker better than me!

I stay out of casinos now as my record is so bad:  30 or visits to gamble, walking out a winner only about 5 times.

I also stay away from put and call options:  6 punts, lost all or part of my money all 6 times.

Stick with gold. Save your money as much as you can.  Pay yourself first is exactly right.  The really nice thing about gold is that you can buy and spend at the same time!

Mon, 07/25/2011 - 11:43 | 1490661 Azannoth
Azannoth's picture

Funny when I was 10 years old I tried to buy dollars, because my allowance was in an East European currency(post the fall)

Mon, 07/25/2011 - 12:02 | 1490727 baby_BLYTHE
baby_BLYTHE's picture

How easy was it for you to convert into dollars? Were there any restrictions?

Mon, 07/25/2011 - 15:56 | 1491768 Azannoth
Azannoth's picture

It was after the fall of the wall, so no restrictions, but money changers didn't want to do business with a kid trying to buy 10$ ^^

Mon, 07/25/2011 - 10:51 | 1490453 Thomas
Thomas's picture

Sub-$300 cost basis--started buying while it was gurgling its death rattle. Bought all the way up until about $1000. My exposure now is over the top, by MSM standards.

Mon, 07/25/2011 - 10:53 | 1490464 Thomas
Thomas's picture

and cost basis of silver starting at $4 and running up to $28.

Mon, 07/25/2011 - 11:25 | 1490585 living on the edge
living on the edge's picture

Been buying gold over the years and bought alot on the dip back to $700. I should have gone all in then but no sense second guessing. I continue to buy every few months and expect gold and silver will set us free.

Mon, 07/25/2011 - 12:38 | 1490894 DoChenRollingBearing
DoChenRollingBearing's picture

Similar story for me, a buyer for decades, although the bulk I have bought was when gold reached $900 or so.  Even though gold is at $1600, I will keep buying as fiat comes my way.

Onward to $55,000 bitchez!

Mon, 07/25/2011 - 10:54 | 1490472 Overflow-admin
Overflow-admin's picture

I don't trust central bankers anymore. Being a little late on the run, I prefered buying silver instead of gold. In the little 9 months that followed my PHYSICAL purchase, I'm currently around 25% net (incl. transportation & VAT fees) loss. But I'm for the long run and maybe before next year I'll be net positive.


How I can actually have a net loss on my investment? Stack priced in CHF (which bounced against USD) so...


I'm waiting for a reversal signal in $XSF; I'm currently in CHF cash and waiting the right moment to move (which could come anytime; the BNS is screaming to debase CHF and Silver is breaking resistance).

Mon, 07/25/2011 - 13:19 | 1491070 Marty Rothbard
Marty Rothbard's picture


   I was about your age back in the seventies, the last time the dollar was falling apart, and gold was soaring.  I hope you appreciate how lucky you are to have ZH to read.  The best I had back then was the Charlotte Observer, and they only reported after the fact.  If I had bought into the PM market early, like I did this time (2004), I'd have made a killing.

Mon, 07/25/2011 - 10:35 | 1490392 TradingJoe
TradingJoe's picture

"Talk is cheap"!

Mon, 07/25/2011 - 10:37 | 1490400 BrianOFlanagan
BrianOFlanagan's picture

wow, a victory lap for the bulls already?  Means an intermediate top must be in.

Mon, 07/25/2011 - 10:47 | 1490431 Henry Chinaski
Henry Chinaski's picture


there is still time for those who missed the boat

Heard that one before...

Mon, 07/25/2011 - 12:11 | 1490769 Bob
Bob's picture

I sold my physical silver on Friday, +25% in six months.  There will be a large dip buying opportunity yet . . . I hope. 

Mon, 07/25/2011 - 13:13 | 1491052 SRV - ES339
SRV - ES339's picture

I got out Friday too... expecting a drop this week once the debt issue is closed (Comex Expiration and Treasury Auctions factors as well)... BTFD!

Mon, 07/25/2011 - 14:54 | 1491449 Lord Koos
Lord Koos's picture

You guys would have been a lot smarter to sell your silver for gold, rather than paper.

Mon, 07/25/2011 - 19:42 | 1492456 Bob
Bob's picture

Perhaps.  We'll see.  Different people are willing to tolerate different levels of sweat and stress.  I wish I were a type B kinda guy.  In that fantasy, I'd be a happy man.  And I would simply be holding the physicial. 

But not me. 

Mon, 07/25/2011 - 17:06 | 1492104 mayhem_korner
mayhem_korner's picture

Hoping is not a reliable strategy.

Mon, 07/25/2011 - 19:49 | 1492461 Bob
Bob's picture

Hope has a high coefficient in our world . . . in our markets, not so much, since MOMO rulz, but then I'm beginning to literally hate our markets--look WTF they have become. 

Give the devil his due. 

Mon, 07/25/2011 - 12:16 | 1490789 chumbawamba
chumbawamba's picture

Amateurs.  Gold is still cheap.  This baby has a long way to go before it runs its course.

Mon, 07/25/2011 - 12:44 | 1490924 DoChenRollingBearing
DoChenRollingBearing's picture

+ $55,000

Hey, but what would a dumb Bearing know, what with a hole in the mddle where a brain would normally be?  Gold will soon be seen again as the best wealth preserver in town.  PHYSICAL gold only though, in your hands.


"All else will be left behind when the Gold Mothership takes off."

-ZH-er "Gordon_Gekko"

Want to read why (the long version)?


Disclosure: I am not FOFOA, but I do donate to his blog.

Mon, 07/25/2011 - 14:10 | 1491247 Temporalist
Temporalist's picture

Where the heck is GG?


Maybe he and Marla moved to an island together to watch the world crumble?

Mon, 07/25/2011 - 17:32 | 1492170 Island_Dweller
Island_Dweller's picture

Unless I'm nisunderstanding. his blog hasn't been updated since June 2010.



Mon, 07/25/2011 - 17:32 | 1492171 Island_Dweller
Island_Dweller's picture

Unless I'm nisunderstanding. his blog hasn't been updated since June 2010.



Mon, 07/25/2011 - 18:20 | 1492267 Bob
Bob's picture

Perhaps he's practicing the Gold Standard for gold protection: Silence. 

Mon, 07/25/2011 - 18:24 | 1492276 Bob
Bob's picture

That was wickedly funny, Temporalist! 

Mon, 07/25/2011 - 18:47 | 1492241 Bob
Bob's picture

Yes, the original Gordon_Gekko.  His day had come

I'm surprised that nobody talks about the Gold Standard for gold protection.  That would be, similarly to the first two rules of Fight Club, that you don't talk about it. 

Otherwise you have to plan for a whole lot of exigencies. Why net costs like those against the value of your gold, I'm always wondering. 

Hey, where the hell is Gordon, anyway? 

We don't hear much from him anymore . . .

Mon, 07/25/2011 - 16:27 | 1491938 Ra-Marduk
Ra-Marduk's picture

Hey chumba, good to see that you dropped the idiotic "I am chumbawumba". You will get much more serious reply's by dropping that non-sense.

Mon, 07/25/2011 - 10:38 | 1490401 Juice Box
Juice Box's picture

Pieces of 8's!  Gold and Silver!  


Pirates were right - if its not shiny, its whiney!

Mon, 07/25/2011 - 10:38 | 1490404 CHARLIE.DONT.SERF
Mon, 07/25/2011 - 11:46 | 1490673 pupton
pupton's picture

ONJ's Cameltoe leotard thing almost made it worth the overt homo-sensuality there...plus I had to sit through the Fabio "Old Spice Guy" commericial...All in all, at least I'm 4 minutes and 30 seconds closer to going home for the day.

Mon, 07/25/2011 - 10:39 | 1490408 Cognitive Dissonance
Cognitive Dissonance's picture

When investors realize that the bull run is fake, not to mention over for a very long time, that dollar devaluation is a certainty, and that bonds are a deathtrap, where will they turn to protect their savings? That’s right…gold and silver.

This is what we all expect. So be careful everyone isn't on the same side of the boat just in case it doesn't. We are dealing with desperate men who will do desperate things. Including taking from the minority to satisfy themselves and the majority.

Mon, 07/25/2011 - 10:46 | 1490432 Dr. Porkchop
Dr. Porkchop's picture

When the fraud no longer works, they'll use force. Fraud still works pretty good though.

Mon, 07/25/2011 - 12:17 | 1490794 chumbawamba
chumbawamba's picture

When they come for your gold, be prepared to shoot, and be prepared for a long stand-off.  Hence:

Gold, Guns, Garden.

Silver, Bullets, Seed.

Mon, 07/25/2011 - 12:52 | 1490969 DoChenRollingBearing
DoChenRollingBearing's picture

There are 80,000,000 armed Americans.  After some 20 - 50 Fasicist Thugs are killed while coming by to confiscate gold OR guns, that will stop.  The cops will have no heart to take on 80,000,000 people ready to stop that.

Chumba is right about another point too.  Diversification is your friend.  Silver for spending.  Food & water for (some) self-sufficiency.  Guns & ammo to secure your rights.  Booze and prescription meds for barter.  Condo dwelling Bearing misses out on the garden part, but ANYONE could (and should RIGHT NOW) be actively preparing for a nasty period in which all of us are in peril in one or more ways.

Mon, 07/25/2011 - 10:48 | 1490440 fuu
fuu's picture


Mon, 07/25/2011 - 10:59 | 1490488 pupton
pupton's picture

CD - To your last point, did you read the article in American Thinker about the potential for the desperate ones to take our IRAs?  http://www.americanthinker.com/2011/07/is_your_ira_going_to_be_raided.html

Physical anything must be pried from cold, dead hands.  Minimize paper/electronic exposure IMHO.


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