More Garbage And Chatter On Cnbc

[AvidFan]

http://www.cnbc.com/id/38831550/

Probably just chatter and noise - from 3 minutes in.

Commentator says institutions are buying silver to increase creditworthiness and lower borrowing costs - silver is now acting as real money.

He reckons the Fed will announce more QE this week (on poor GDP Q2 growth revisions on 27th August).

Could push gold to $1350 and silver to $25 as predicted by many on here.

Interesting that at 5 minutes, they say you can play the Hugarian Florint failure by shorting Austria, where most of the Hungarian home loans have been written, using a US ETF.

To me, that's an anti-Euro play - and yet if QE is enacted, the Euro would surely benefit?

[General Congreve]

http://www.cnbc.com/id/38831550/

Probably just chatter and noise - from 3 minutes in.

Commentator says institutions are buying silver to increase creditworthiness and lower borrowing costs - silver is now acting as real money.

He reckons the Fed will announce more QE this week (on poor GDP Q2 growth revisions on 27th August).

Could push gold to $1350 and silver to $25 as predicted by many on here.

Interesting that at 5 minutes, they say you can play the Hugarian Florint failure by shorting Austria, where most of the Hungarian home loans have been written, using a US ETF.

To me, that's an anti-Euro play - and yet if QE is enacted, the Euro would surely benefit?

Lovingly the American Football commentator-style reporting, rat-a-tat,rat-a-tat, rat-a-tat....

Either way, nice thin end of the wedge of gold and silver entering public awareness, the real bull market starts now. More QE please Ben

Ohhh, talk of sovereign debt crisis too, nice!

EDIT: I know gold gets a bad rap on here, but seriously, all you deposit savers and STR's out there, is your money safe in the bank or safe from the machinations of government risking our currency with hair-brained policies?

I've been subjected to much vitriol on here since I joined re: gold (gold pays no interest etc.), but in that time (about 18 months) my gold holdings have gained 20%. What's your savings account paying?

Edited August 25, 2010 by General Congreve

[AvidFan]

What's your savings account paying?

Mostly 7% before tax - and I've some at 5% tax free. But it's not 20% every 18 months - I'll grant you that.

I'm still in two minds whether the SHTF here or we get another bounce into the end of September / early October. Just a feeling that the negatives are upon us way too fast.

Edited: So... S&P 500 back to 1220, gold to $1350 (new dollar high only...), silver to... $25? USDX to 0.76, etc, etc. Who knows?

Edited August 25, 2010 by AvidFan

[Georgia O'Keeffe]

Mostly 7% before tax - and I've some at 5% tax free. But it's not 20% every 18 months - I'll grant you that.

I'm still in two minds whether the SHTF here or we get another bounce into the end of September / early October. Just a feeling that the negatives are upon us way too fast.

Edited: So... S&P 500 back to 1220, gold to $1350 (new dollar high only...), silver to... $25? USDX to 0.76, etc, etc. Who knows?

Pretty much my favoured view on them all, although i dont think silver wiould get much past its 08 highs circa 22 if it happens and at that point the bear rally ends across the board and all of the above and all other currencies spank against the dollar for at least 3 years

[JimDiGritz]

http://www.cnbc.com/id/38831550/

Commentator says institutions are buying silver to increase creditworthiness and lower borrowing costs - silver is now acting as real money.

Silver has been in a significant carry trade for a long time.

[General Congreve]

Mostly 7% before tax - and I've some at 5% tax free. But it's not 20% every 18 months - I'll grant you that.

I'm still in two minds whether the SHTF here or we get another bounce into the end of September / early October. Just a feeling that the negatives are upon us way too fast.

Edited: So... S&P 500 back to 1220, gold to $1350 (new dollar high only...), silver to... $25? USDX to 0.76, etc, etc. Who knows?

Not bad rates, but with what banks and locked in for how long?

I can sell my gold for the spot price immediately any time, I assume the recent elimination of the sell margin by my dealer is because he's having to pay that rate to prize it from people's cold dead hands to keep his business running.

Also because of it's nature the gold market moves far slower than the stock market, it's not been known for a Black Wednesday type event to ever occur, the stuff can't be sold fast enough, so there's always time to sell up and take profits in the event of a fall. Only issue with gold investing is the fact you have to take a hit on the dealer spread when you purchase, unfortunately for all those that have waited the spread is now entirely with the buyers margin at 9.7%, oh dear. When I purchased the spread was 7% evenly between buy and sell. Oh well, you were all warned. Still time though.

I love gold, as you can probably tell. Silver's a bit of a b@stard love-child, but should come good in the end.

Oh yeah, understand what you're saying re dollar gold price, but a continuing undermining of the world's reserve currency will be bullish for gold in all currencies, chiefly because as the dollar weakens one of the safe havens (in my mind the only real safe haven) to benefit from money flowing out of the dollar will be gold.

Edited August 25, 2010 by General Congreve

[scottbeard]

I've been subjected to much vitriol on here since I joined re: gold (gold pays no interest etc.), but in that time (about 18 months) my gold holdings have gained 20%. What's your savings account paying?

The only thing to watch is when to turn that gold back into either goods or cash. The danger is watching gold to the moon....and back.

[AvidFan]

Not bad rates, but with what banks and locked in for how long?

Most of it matures this year or is on 30-days or less notice.

With hindsight, gold would have been a better place - but how much to risk...? I had gold but sold at $900, way too early. I didn't bank on QE - no pun intended.

Edited August 25, 2010 by AvidFan

[General Congreve]

The only thing to watch is when to turn that gold back into either goods or cash. The danger is watching gold to the moon....and back.

See my next post just above your last one, no dramas.

[General Congreve]

Most of it matures this year or is on 30-days or less notice.

With hindsight, gold would have been a better place - but how much to risk...? I had gold but sold at $900, way too early. I didn't bank on QE - no pun intended.

The state of the world economy told me gold was a safe bet, so I went in for around 35% of my cash assets, it's just as much about speculation as wealth preservation for me.

However, my father wasn't so sure, as he knew nothing of the gold market until I informed him. As he's close to retirement I persuaded him to put at least 10% of his cash assets in bullion. My reasoning was this:

Say everything somehow suddenly returns to normal, the pound soars and gold is rapidly crushed by 50%, you lose 5% of your cash assets but can breath a sigh of relief. No big loss, think of it as insurance.

But what if sterling, the dollar and the euro are killed (or at least sterling), you've bought yourself some protection, from this, not only that but the likely multiple rise in the gold price as money rushes from these currencies into gold for protection will probably mean you don't lose that much of your cash assets.

Do nothing and the pound is crushed, then where do you stand after a lifetime of work and saving for retirement?

Every time I see him now he's busy on ebay adding to his collection (unfortunately not fast enough!)

EDIT: By my reckoning 10% is far too low in this environment, it should be more like a 25% minimum. He's being very reckless with my future inheritance in my opinion

Edited August 25, 2010 by General Congreve

[scottbeard]

See my next post just above your last one, no dramas.

OK fair enough, gold won't "crash" overnight like stocks or currency can.

I was thinking more of people who end up as goldbugs, holding gold through thick and thin because either (1) they get emotionally attached to it or (2) because they are still waiting for it to go "to the moon" when it has in fact already been as close as it could get - and come back.

For example, people sometimes talk of gold going "to the moon" if the UK were to experience hyperinflation. It won't. All it will mean is that a gold coin still buys you a suit, whereas a £50 note buys you nothing. I think some people think in hyperinflation they'll get an opportunity to buy a house with a handful of gold sovereigns, and it won't happen.

I see gold as something that stops you getting poorer, rather than makes you richer. Insurance against inflation, if you like.

You sound like you know what you're doing, so fine.

[General Congreve]

OK fair enough, gold won't "crash" overnight like stocks or currency can.

I was thinking more of people who end up as goldbugs, holding gold through thick and thin because either (1) they get emotionally attached to it or (2) because they are still waiting for it to go "to the moon" when it has in fact already been as close as it could get - and come back.

For example, people sometimes talk of gold going "to the moon" if the UK were to experience hyperinflation. It won't. All it will mean is that a gold coin still buys you a suit, whereas a £50 note buys you nothing. I think some people think in hyperinflation they'll get an opportunity to buy a house with a handful of gold sovereigns, and it won't happen.

I see gold as something that stops you getting poorer, rather than makes you richer. Insurance against inflation, if you like.

You sound like you know what you're doing, so fine.

Some good points.

No point holding as investment for emotional reasons. The time to sell gold will be when some semblance of fiscal responsibility returns to the world, especially the western world. Unfortunately the US, UK, Eurozone at al have really painted themselves into a corner with all the debt they've accumulated. The rise in interest rates that is required to support the respective currencies of these countries will crush what is left of their economies into dust.

So, while interest rates are kept low gold will continue to thrive. But it's not as simple as that. A rise in interest rates, whether forced by the markets (probably the case in the end) or the result of brutal fiscal responsibility far too late in the day, will crush the banks as people default on unaffordable loans. So, if interest rates do rise they'll be carnage, probably followed by more bailouts and money printing. It's a great scenario for gold, the sky really is the limit.

With reference to the wealth preservation aspect against making you richer, I disagree. True, over long periods of history gold will generally hold a steady value as currency, the tailored suit for an ounce 50 years ago or today being a common example. However, we are entering the mother of all bull markets as people rush to swap other depreciating assets for gold. Time it right and trade out into the right currency before the dust settles and you'll make out like a bandit.

I'm overjoyed to have been born at this time in history and to have chosen economics (yawn) as an a-level back in the day. It seems there really is such a thing as a free ride, thanks to Greenspan,Obama, Ben, Gordo, MPC, ECB, the FED, I love you all you morons.

Edited August 25, 2010 by General Congreve

[General Congreve]

BTW, this is worth a look:

http://www.usagold.com/gold-price-forex.html

Charts of gold against many major currencies over the last 5 years and today. As you can see we haven't even entered the parabolic phase of the bull market yet.

[General Congreve]

Thought we might be going somewhere with this thread. Oh well, was a good run for a precious metals thread...

[AvidFan]

Thought we might be going somewhere with this thread. Oh well, was a good run for a precious metals thread...

It's been on the main forum for a few hours... what more do you want?

[General Congreve]

It's been on the main forum for a few hours... what more do you want?

The moon on a stick, ideally a very long golden arrow-shaped stick

[Stay Beautiful]

The moon on a stick, ideally a very long golden arrow-shaped stick

GC, is this you?

http://edition.cnn.com/2010/US/08/24/stealing.history/index.html?eref=rss_us&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fcnn_us+%28RSS%3A+U.S.%29#fbid=z0LioTeLqRq&wom=false

[Guest spp]

Put it like this...I will not be selling any of my physical silver anytime soon.

Just look at the forum topics for crying out loud.

Silver doesn't even need a sovereign default, hyper-inflation or a currency collapse to go where it's going. Any one of those is just a bonus!

Commentator says institutions are buying silver to increase creditworthiness and lower borrowing costs - silver is now acting as real money.

Gold and Silver is money!