I got rid of some silver proof sets today when I saw the spot price. I didn't buy the sets for the silver, and I didn't pay much because I bought them after the mint, so they had depreciated. I just thought: "Hey, today would be a good day to convert $20 silver proof sets into $50 each towards old coins!" So, I picked up some really nice cents and nickels with the store credit. Picked up an AU/BU 1851 Cent for my 7070... All for a couple of duplicate silver proof sets.
With or current political climate anything can happen! to try and speculate under the current Conditions is just madness!
Given that you're new to the forum, I guess it's excusable that you didn't know where I put the profits from silver. I moved out of physical and into miners and Nat Gas. I'm pretty happy with my decision.
Since Mar 15, Silver has increased by 20%, my rare earth stocks have increased 40%. So I have no problem selling silver or gold if warranted. There are areas that will outshine silver, you just have to research and find them. IMO, rare earth is where silver was in the early 2000s. I would watch copper also, My opinions. Jim
I wasn't talking about you specifically, but notice that you aren't disputing either of my points. You didn't sell the bullion for cash, you moved it to another investment. I don't have much insight on the stock market aside from the fact that it's being completely inflated by quantitative easing by the Federal Reserve Corp. If I had to invest in stocks, I'd choose mining stocks because they are poised to do well when PMs do well (something I do know about). I don't have any reason not to believe you moved into one of the precious few investments that has outperformed Silver over the last month, but I certainly wouldn't recommend the average member of this board sell their physical and try their hand at stock picking. Silver is the investment of the decade, imo. Supply/Demand, the death of fiat, and social unrest lead me to this conclusion. There is a lot of paper money to be made trading stocks, but those stocks are subject to all of the external factors that go along with owning any paper stock. You obviously don't buy into the dying dollar theory, but physical silver will outperform ANY stock in that environment.
Are you staying long with these stocks? Or are you moving on to the next one that's poised to jump? I like silver because it's got long term buy/hold potential in an extremely volatile environment.
It's up $1.31 as of now. There is a correction coming and all of the silver haters will come out of the wood-work. Not to worry, though. The long term trend is holding.
Assuming you mean PM stocks, those that I consider mature and dependent on the world price of gold, I usually watch the technical charts closely during the market and use options, so I can buy/sell them quickly. For those that are not yet to mature producing mines, I generally buy the shares on a long term idea based on estimated resources, or option leaps such as for Jan 2012 or 2013. Currently none of the rare earth mines outside of China are producing ( and they intend to use it internally), but should in the next year, so the price tends to reflect such, once you get through the hype. Rare earths are needed for almost all modern electronic devices, especially industrial magnets such as used in electric car motors.They can however, produce Thorium and other slightly radioactive waste products in processing( One of China's problems they don't recognize), so processing may be a problem. Lynas ( Australian) is going to ship the ore to Malaysia, Molycorp (US) has purchased a processing plant in Estonia. Jim
I am kind of a Marc Faber fan but he had an interesting article today about the state of things and the prospects for things of value (see last paragraph) as the dollar follows it's destiny downward. http://www.cnbc.com/id/42478554 With the inability of Washington to make meaningful changes that gets us toward a budget surplus (so we can actually work on the debt) we will continue on the current path. In truth, the Fed has no other tricks left in the bag. The only way out of our debt problem is to devalue the dollar; it will continue to be so. As people look for safe stores of value they will look to objects possessing the characteristics detailed in the last paragraph of the article. In my estimation, silver is one of those objects and will therefore sawtooth upward for many more years. Regards, Bluesboy65
You are not the first person riding the bull who thinks there is a correction coming. However, I don't unless one of the major players decides to transfer out of PM's into something else, not because a correction is due. I believe high prices are what was overdue because of dollar liquidity coupled with price suppression by JPM. Of course, with market manipulation anything can happen. I've seen plenty of valid arguments why the 'this time is different' mentality is dangerous and happens with every so called bubble, but I think this time really is different. The global economy has never been so tightly knit, and we've never seen a situation like this on a global scale with the USD as the world reserve currency. It's uncharted territory so I don't think conventional wisdom applies as much. Investment demand is definitely contributing, but why is it so strong? Sure China is a major factor, but even their central bank is holding back to try and keep prices low for their citizenry. Maybe it's because the dollar index is bottoming out. Maybe it's because stocks are still falling in comparison to gold, and only appear high because the USD is even lower. Maybe it's because even in the face of one of the greatest economic struggles any of us have ever seen the status quo hasn't changed. Maybe it's because leadership is willing to cut services before thinking about collecting taxes from big businesses or curbing the most outrageous deficit ever, with a government shutdown looming. I don't see how the current trend won't continue unless we do a 180. This is not simply a matter of someone cornering the market.
I didn't mean a major correction, although that is possible. The silver price is HEAVILY manipulated by major banks on the futures market. I wouldn't be surprised to see prices retreat to the $35-$37 area in the short term, but it's eventually going to the moon when priced in US dollars. Bank on it.
Howdy all, Always enjoy Marc Faber. What's curious is that I've never read or listened to an interview of him where he wasn't bullish on something. It may not be your Aunt Emma's apple pie, but he's always got a Long play. If you want to talk doom and gloom look up Fleck' or Tice. They'll have you blowing chunks. Have to agree with Inflexion that while we might be looking at a correction, don't even think about trying to anticipate it. Never, ever, ever, anticipate a trend reverseal. WAIT until the trend actually DOES reverse to make any moves. Set yourself a 10% mental stop loss point from not. What. Gold's at 1475 so 10% would be a correction back to 1330 and silver to 36 from 40. Now IFF a correction occurs AND it violates these stop loss points THEN you start exiting your PAPER position. [and while you may be exiting your paper metals, you're buying phsyical on sale 'til it hurts]. peace, rono
You can read my posting history to verify this. I'm pretty open about where I invest. As to the question someone else posted about which miners... also covered in my posting history. DesertGem: Any idea why the spread is so wide on Lynas stateside? I bought some shares, got gouged, decided not to buy anymore. Pretty much our only choice is MOLY... and they're WAAAAAY overpriced.
LYSDY is 10 shares of LYSCF, so if the spread is 1cent on LYSCF, it will be somewhere between 1 and 10+ cents on LYSDY. They are both ordinary stock. It is also listed on the ASX as LYC.AX like LYSCF only in Aust.exchange. MCP is over priced, but I bought vertical spread call 60/72.5 for Jan 2013 for 4.25 when it went down on the 6th as I remember and they are already past the break even point. I might increase it if the chance comes again. IMO. Don't read as trading advice. IMO. Jim
People talk about selling at 40 dollars but if we sell our silver what will we buy with the proceeds?
