2011 GOLD high $1,500.00, SILVER high $24.00

It really did shoot up. I'm hopeful that there's a tear down period where it will at the very least, come down to low $20's....I can certainly pick some up then.....the year has started and anything can happen......

Does the average person even know what 1 oz of silver is priced at today????

 

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The gold may never reach the $1500 plateau, although silver has passed the $25. As I have been saying and others have been agreeing, the best opportunity seems to be silver for the near future. I only know that I have sold very small quantities of silver that bid up very quickly on eBay. I never listed any that didn't get bids. lol I am looking at the ratio right now and think there is more room for that to close. IMHO
gary

 

I doubt they know becase the average sheeple person is too busy trying to keep a job and feed their family to care what an oz of silver is priced at today.

 

This took me a bit to write and hopefully not sound too vague or limited in scope, sorry to have missed a few posts since then but one of your later posts still seems to apply, your thoughts on looking for a big dip to buy a lot at $20....

So in reply to the quoted comment above:


This is something I think you can try to learn to view another way to help solve being stuck in this position-- that of PMs having risen and feeling like you cannot buy as much as before.

I've mentioned before that I personally believe in buying PMs little-by-little over time regardless of minor ups/downs. Each individual should base 'little' on the size of their own personal budget, i.e. my little may be much smaller than yours. Consider buying PMs frequently the way people allocate regular contributions to a retirement fund or savings account. They don't wait until they have 10k to invest or deposit their money, they take 10% from each paycheck and buy shares every so often. Some bullion services have accumulation programs that you can subscribe to to help stay on track buying physical to meet your financial goals and it could be cheaper than fees associated with buying from online dealers or taking possession of and dealing with security/storing physical yourself.

Then, as the price of PMs increases further, it's not that your money now buys half as much (using your price example above) but rather, you adjust to buying half as much as you would have been buying before. This way you continue to accumulate and take advantage of a range of spot prices. Continual purchasing means you haven't missed buying at $30/oz. as you sit and reflect back from $40/oz. and from here you readjust your buying again, acquiring PMs in smaller increments as you ponder and prepare for the eventuality of $50/oz. as many see possible in the near future. This helps you add to your position and that is where your value is increasing-- rather than focusing on your paper dollars' worth decreasing. I think you left that out of your view, remembering what you already have or could have put away as your paper diminished over time. While your dollar could be said to decrease, your PMs have continued to increase.

If your currency becomes stronger, don't stop buying PMs. If PMs drop, continue buying. Always add to your position. Now, there will be times when you simply must convert all to cash or 'other' to protect your wealth if PMs are poised to take a hit or for other advantages, but as long as you are in, I suggest regularly adding to your position. I don't advise trying to sell a little and hoping for another chance to buy more or wait to buy if/when PMs drop, we simply loose too much time this way.

I guess I just feel that the more you can squirrel away the less it matters how little your current dollars in hand are worth so long as you continue to add to your PM holdings, which holds the value you feel your dollars have lost.

 

maybe you could have sold a few gold ozs like say 5 for $1200 each and bought 300 ASE's at a high price of $20/each back then...lol...funny to think back in August if you paid $20 for an ASE you were over paying...

 

So, for those of Us who either invest or just follow the markets and the PMs.......what did We learn from last week? We saw some profit taking from the PMs, mainly due to the rise in the dollar. We also heard many analysts declare that the PMs were in a bubble that was bursting. These same analysts were singing the praises of the PMs just days before. Well here We are, one week later, and look.....the bubble has not burst! (soon CNBC will be back in bed with the metals, after their brief divorce)
Now I`m no analyst, and I sure don`t attempt to play one online, but there are some things that even Ray Charles could have seen coming.....

First off.....if any of You either live or have lived in a once productive manufacturing town/city, You don`t need to be told that the jobs are never coming back. Despite the minor push for "green jobs" there just is not enough of them to go around. (even Spain who led the way in green jobs is finding out that they are not nowhere near the solution that they were touted as) I have 5 major factories in my area that have either moved overseas or are a shell of themselves, with many smaller ones whom are no longer in business as well. You won`t find one person in my city that has lived here since the 80s that does not know someone who has either lost a good job, or that was once working at a productive company/factory.

Take a walk through places like Detroit, Gary, Utica, Youngstown, etc and tell those people that the unemployment levels dropped in the last quarter, and that some analysts see the dollar rebounding as well as the economy.....try to convince them that any minute now the green jobs will save the day.

For those that do the shopping.....keep track of the products that You buy and watch for inflation. I have already seen it with some items such as cheese and even some junk food. Cotton has never traded higher and many of the manufacturers have been absorbing the cost with the rise in cotton.....but not for long. They have all agreed on a time when they will all adjust their prices in unison. Watch and see. (should be late winter/early spring)

I`m sorry but I`m a realist who lives and deals in reality, not like these fools who have a day traders mindset and believe the economy will rebound behind the will of politicians who are bought and paid for. I`m going to keep buying the PMs like I always did, and never stressing about it one way or the other.

 

Currently in EU/UK markets for 1/11/11:

Gold: 1377
Silver: 29.11
Platinum: 1745
Palladium: 766

(Ask)

US markets opening in two hours...

 

I'm not quite sure and never have had it explained..why are there most often listed two prices, bid and ask?
And why are they listed fifteen minutes behind?
After just looking, I see them up a bit from close yesterday.

 

Hope this past CT thread on Bid vs Ask helps answer some questions for you.

 

Ding dong.. I should have searched first! Thank you for the link.

 

I'm confused by this statement. Gold trades 24 hours/day. (except on weekends)

 

Well said. Maybe I have a short memory, but I don't recall that strategy from you in all of our conversations. You are right, my POV has been from the dollar side. Always thinking, "could have gotten so much more back then". Now I don't frown on the yesteryears of silver that I've completely miss like $5 silver, $10 silver because I wasn't paying attention. My attention started at $16 silver so that's my baseline. I do agree that incremental buying is probably key. Because when you're looking at the eventual $50 silver, then $30 isn't too shabby.

Not to get into stocks since you brought it up, but this morning I was listening to a radio show that was preaching about "experts" saying that it is time for America to get over their fear of stocks and jump back in. I don't know who this radio jock is, I actually listen to him every morning casually but I never get his name. He is always trying to help people save money. I'm not an economist so maybe he's right, but I cringe when so called experts are telling Americans, or begging Americans to get back into stocks....

Back to bullion, I must continue to purchase. I have not met my goals yet for silver. I have not bought at $30, just as I have not bought gold at $1420'ish near it's high.....I'm not really sure what I'm waiting for right now to purchase. I am only hopeful for a dip to $20 but I'm not expecting it.....

That is most certainly something I could have done. =)

But my train of thought right now is to accumulate..... You think $20 was funny back in August. Wait until we revisit this exact posting and laugh at us talking about $30 silver when it hits $50!!!

 

You're not confused, you're just being overly technical and too literal. While all PMs, not just "gold" trade around the world, around the clock, from one market to the next, each respective market has its own hours of operation, annual holiday observances and weekend breaks. As such, when I posted earlier at 6:17 am, the US Comex was closed for another two hours (precisely it was closed for another 1 hour and 58 minutes at that time), but the markets were already open in the EU/UK markets, which themselves will be closing shortly. The point of stating these times is for context in terms of which market the prices are currently then active in as each market reacts to and has it's own dynamic flow of trading during business hours. If you follow a market before, during and after its hours of trading operation you will notice when and where volume tends to be increased, prices accelerated, taking breaks/level, etc.

 

I unlike fools_gold, can remember wanting to invest in the PMs when silver was "marinating" at the $7 level, but I never pulled the trigger. I had to get over those feelings of "missing the boat" and have no qualms about getting in after silver hit $17.....especially since I believed the PMs were still going to skyrocket. Pondering about "what could have been" is nothing more than wasted thought. I know people who bought the PMs religiously when they were lower, but now are very nervous about buying more at the current levels. Like some have already echoed on here......Don't be too drastic with Your purchasing, OR get too nostalgic for the good ol days and not buy anything at all. (should You be thinking about getting in, and are fully convinced in Your own mind that the PMs will rise)

If one truly believes that the PMs will go up......then by all means buy in. However if one believes the opposite, then stay out. Riding the fence and being in the middle is the worst place to be. (in my opinion)

 

There's no getting around GOLD.

http://wallstcheatsheet.com/breaking-news/economy/there-is-no-getting-around-gold.html

 

I saw an interview with Ron Paul 3 weeks ago in which He talked about putting the dollar on the gold standard. He even discussed having the dollar backed by silver as well. Who knows? It just might happen.

 

No one has ever said now much each dollar had to be backed by gold as far as percentages go. I mean, when we had silver certificates, did that mean you could trade it in for 1oz of silver? If dollar was backed by gold, it would have to be by a crazy fraction of what we own....err.....suppose to own.....

=)

 

No, it meant you could trade it in for one silver dollar, containing somewhat less than an ounce of actual silver.

 

+1. Morgans and Peace dollars, 90% silver composition for instance.

 

I don't know how that could happen...does he hope to go back to 1964? right now the amount of bills floating around right now is what 10x or 100x of what it were back then...also if they were able to suck up all those bills and cause deflation to the point of where the value of the dollar is back to where it was back then how do they cure the bigger problem? that being the people factor? how much was a candy bar back then? what $0.10? most people are used to paying $1 for it sure that could be great for the buyer but the seller is going to feel ripped off...also along with that how do we lower salaries without making people freak out? inflation is actually what people want...I mean in the subconscious we all expect to get more the longer we do a job...but if currency doesn't lose value we can't exactly keep giving out raises...

so if we don't go back to 1964 but decide on say $31.10 equals an ounce of silver being 1 gram is a dollar eventuallly there will come a time that people will not be able to get raises in pay and I don't see that being a pretty day...I think we could back currency with pm's again but it's going to take more then just legislation...it's going to take a certain mindset that people in this country used to have but most have given up on for the "idea" of more is better...when really it's all about the same of less in the long run...