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

Don't get me wrong, I don't think the FDIC has a chance in covering all the failed banks. That's why, I think last year they were asking banks to pay more into the system, and they were going to withdraw future funds to pay for today's failed banks. Something along those lines....that's kinda dangerous because we are pushing the boundary even further, what next? Borrow from next decades funds?

I'm not entirely sure what the status of the FDIC is currently.....what is the latest on banks stress test etc etc....?

 

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What the banks are seeing is that the US Government is making a goodly profit on the loans that the banks received from the bailout in exchange for stocks or warrants. Same for AIG when it comes around to selling the government shares of AIG stock. So the major banks are satisfying the progressive stress tests and are ( according to Dimon, Head of JP Morgan) doing their own stress test runs to try and speed up the process, pay back the money from the government, and keep the future gains to themselves. For example, Citibank was bailed out for 45billion dollars. The government took 34% of the shares for 25 billion of the loan, and citibank wants to repay the outstanding, but the US government is in no hurry, since they have gains of close to $14 billion already and it could increase if they don't accept the payback. Similar situation with AIG, who received over 180 Billion in bailout, but the government's position for that has also made a multibillion profit already. Basically , I think you can wipe the bailout off the slate of worries.

So, even though there are skeptics, the majority of the American people do not know how well the payback for the bailout has gone. The question is what is the government going to do with the

profits? They are sure keeping somewhat quiet about how smart they were to bail out these companies and making billions of profits. You can find the appropriate news by googling. IMO.

Jim

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Currently: (12:15 approx) (Bid)
Gold: 1367.50
Silver: 28.90
Platinum: 1821.00
Palladium: 807.00

Even if slight, it's nice to see "green" numbers (instead of red)
Lucy

 

A couple of thoughts...

First, when you factor in the $160billion loss [according to Bloomberg] on the Fannie Mae and Freddie Mac bankruptcies, and the losses still to come on the loan portfolios after the 2011 mortgage rate resets, the program looks less rosy. There are still [I forget how many] trillions of loan guarantees still out there that may or may not turn into real losses.

Second, it is disturbing to see the government in the business of making money from investments. Now that this horse is out of the barn the future is wide open to all sorts of games such as the British government played in the 1970s - with disasterous financial results.

So it is a little early to declare victory and go home.

 

http://www.washingtonsblog.com/2010/05/700-billion-ha-real-costs-of-bailouts.html

Perhaps not the best, but this is a decent summary of the bailouts.

 

I posted this in another thread and thought it applied to what you said so here's the repeat...

"I think hearing that deflation/inflation is a 50/50 shot of either... why not prepare for both? put half your assets to inflation proof and half to deflation proof... at the very least if deflation were to double the value of your dollars you still have a profit from the inflation proofing ie gold/silver you bought up and if inflation hits instead and doubles the price of gold/silver then at least you got the 25% value in in dollars that once was 50% of your assets...

in either case you'd still have "125%" of what you started with... basically it's like betting on red and black and even and odd at the roulette table... unless your in the "game" to make out like a bandit I think this could be a good way of saving the "value" you've been trying to keep from being blown away in either case...

hope I make some sense to some out there... "

p.s. I have about $3,000 that I was going to put into PM's but I decided to use it for another venture that is coin related and I am averaging at least $100 a week and also accumulating more silver with this venture not just with the $100 profit a week but also with the usage of my dollars...can't say anymore then that...and I figure I will just keep going along with it too... put the profit into pm's and keep the original $3,000 as a "deflation proofer" I would say what exactly I am doing that is giving me such profit... but it seems I've cornered the market in what I'm doing...and I don't want to see it dry up anytime soon...

I gotta say it's nice to have an ex wife instead of the leech she was... or I wouldn't have any kind of savings... right not to date from last may to now I am in the black by about $11k...which in NYC or California isn't much but here in Nebraska it's enough to pay for rent,food,utilities for a year for me...
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No I totally get what you're saying. So I suppose the saying goes, don't have all your eggs in one basket. I may have to trust the dollar a bit more and hold more of it as I don't want to be wiped out if PM's drop. Or I can put my savings in something else like another currency, but I don't know enough about currency trading.

It's not a race but I kind of think of the tortoise and the hair. We would be the hair since we think our PM's will outpace USD's. But if we are wrong, and the dollar goes strong and PM's drop, then the tortoise wins, which would be our neighbors and friends who never even bothered to put an ounce of energy into PM's. I guess what I'm not hoping to see are my friends saying, "hey, how's your gold doing now eh?"

I won't generalize about women because not only is it way off topic but of course, not all women spend their hubbies money. Most do, but not all... =)

Quick story, there was this girl I was hanging out with years ago, just friends, she had a BF. But I soon realized that I was spending WAY too much money hanging out with her. And to make it worse, most of the time, I would have to pay for things like movies, food, dinner etc etc... Something didn't seem right, my frugal mind just didn't mix with her cavalier spending style. So I made the "easy" choice to part ways.......

Unfortunately my job is that I have to work in the NY tri state area. I am more of a country person myself. Give me 10 acres and a barn any day! You'll never find my gold!!!

 

The member banks are chosen by their financial capabilities to take the accounts of the failed banks. Money is still provided them at the discount rate at a set ratio to deposits for them to loan out. Operating capital and expenses are supposed to be earned by the difference in those rates. Bad loans of failed banks are assumed by the Fed and not passed on. So basically, when a bank fails, the fed picks up the bad debts and assigns the other accounts to member banks in the area. There are a couple of local banks here in Las Vegas that doubled in size because of other banks failing. Locations went from small branches in stores to the free standing units of the failed banks. The small branches went to other banks. It was really a lot of changes here in the last two years.

 

Has anyone noticed that the ratio of the recent gains in Gold and Silver has been about 14 to 1 ?

 

Currently
Gold: 1372.70
Silver: 29.08
Platinum: 1841.00
Palladium: 816.00

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not exactly trying to get off topic here but I'll just say I found one of those women now that doesn't believe in spending my money...and in fact I have deposited money into her account a few times just to help her out with her last semester of college as she's graduating in june with a bachelor's in beef and chicken in meat science...and she's gotten mad that I did that and told me not to deposit anymore money in her account cause she'll just leave it in there and/or donate it to a charity...lol... it's kinda refreshing to get told that cause I'm kinda the same way...I don't like taking "free money" from anyone unless I absolutely need it and she has needed said money at times but she's also keeping a running tally of it and writing me IOU's and stating a 5% interest rate with it and she's stated that they stand up in court and only means that just to prove it's going to be paid back...course thinking about it...it kinda makes me just want to loan her more cause I look at it as an investment. We've talked about the M word a few times and she said whether we get hitched or not it doesn't matter cause I can't do anything to get rid of her as I'm stuck with her...

anyways yea just don't keep all your eggs in one basket...also here's a thought if your worried about either pm's or dollars dropping in value. if you put say $10,000 originally in and now worth say $15,000 you could sell $5,000 of them and put into basically anything else as an insurance so to speak. one thing I have been doing that I started out with $1,024.10 is a kitco pool account and with the ups and downs in the past 3 weeks and with the said buy low and sell high thing I've been doing... if I cashed out I'd stand to make $184.06 right now or if it's possible 6.35 ozs of silver.

basically I look at it this way keep on top of your position in whatever your doing.
don't get emotional and set targets if say silver drops what price is it your hitting the sell button at? if it sky rockets what price point are you hitting the sell button? pm's, stocks and any other investment vehicle as well as dollars are not permanent if pm's tank then that means you should already be out of them already assuming you have followed your investment plans.

 

"DIP"idy do da, "DIP"idy day!!! My oh my what an interesting day....

Gold futures drops $25!!

 

China in da house!

 

Quiet site..a little like the waiting room during a critical surgery..
Currently: app. 2:15p.m.
Bid
Gold: 1331.00
Silver: 26.73
Platinum: 1778.00
Palladium: 781.00

Each of the 'writers' that I have been reading (currently 3 of them) all are still saying the same thing about gold and silver -- considerable drawback, and then later they will resume climbing. I don't know personally, and perhaps I should balance what I read with someone who is AGAINST owning same, and look at their reasoning. In the meantime, I personally don't believe it's time (at least for me) to bail. It's a good spot to be in, for now.
Hope everyone is doing well, and not getting too nervous.

 

No nerves here. Have those and you're prone to be making mistakes. I wonder if the people who usually state they'll buy a dip have found such opportunities, not just readjusted them lower to put off buying again. If the decline is going to be much steeper than anyone ever expected and folks are still in, then it's probably a bit late if they haven't unloaded to protect their comfort zone, by the time they start to, things could resume climbing anyway.

 

One thing I don't "get" is when people buy, or sell (more so the sell than buy) on a few dollar change in price? Doesn't make sense to me, in the overall picture. I'm pretty sure that all I have to do is (hopefully) get out before the trend changes. Ha Ha! That sounds a bit cocky.. certainly over-simplified. I can't imagine anyone not expecting this correction -- look how far we are ahead even though? That's what I look at anyway.
World events right now, all over, are churning up lots of what-ifs, on a daily basis. As before, we live in interesting times..

 

I just called a place in town to se what they are selling at. I am on the fence if I want to pick up some more silver since it is not far below what I was just selling at when I decided to take out some profit. $28 for silver rounds and $19 per dollar for 90%. I unloaded about half of the silver I own since I bought most of it at $12-15 so I am working on profit now.

 

I am still way in front and going to hold. I am waiting to see how low it goes before buying, because I think that with the open market for private ownership in China that Silver is going to continue to come back strong. IMHO

 

Here is an interesting articles about China, and it reflects more current relationships within China. The private ownership has been around long enough to cause a ripple, but it doesn't have seen to. Looking up articles on it all repeat the same thing about how it will drive up precious metals, and about 90% of the sites are PM sites pushing buying PM. China's inflation seems to be growing faster than the US, and the average citizen there, more than likely, has to spend any extra money on food and necessities rather than PM. The average urban salary is "guessimated" by various sources at about $10,000 USD and there is a 8% government deduction, and precious metals are the same basic cost everywhere, so how many US, or other countries, do people who make $10,000 buy precious metals?

It is Ok to believe that PM will continue to increase in value over the next years, that it what makes a market, but to think it is the Chinese , Indians, etc. that will do it, is to me a difficult thing to base an investment.

http://bullion.nwtmint.com/articles_bullion_report.php

I still see Silver dropping to $20-24 range before solid recovery is possible. Based on "technical charting and fibonacci retracement levels, which everyone ( including me) say can't really predict future levels, but so many "believe" in it, that it is often seen to cause them.

 

"8% government deduction"

sounds very auspicious.

"so how many US, or other countries, do people who make $10,000 buy precious metals"

Hopefully not too many, lest they are believing the hype and buying beyond their means.

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Honestly, I worry more about issues I hear about inflation in China on the rise and/or a future devastating economic crisis in China in what it could do globally to all humanity, than what the US/EU/UK has just/still is weathering. A sort of fear, is that the depth of such a crisis in China will bring down global markets and economies due to their super size. I fear for them and the suffering their people may endure if economic hardship hits a country so 'enjoying' (?) their economic rise. Hearing stories of people hording oil drums full of raw cotton, or hording spices, dry goods or any such thing to store value or stave off inflation is much more urgent and touching than households in China buying precious metals. I would never suggest such xenophobic reports urging other nations to buy metals because another is doing so. It doesn't help anyone to operate under such reasoning, only keeps us apart. (sorry if I drifted here into opining too much)

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