PM on rise overseas tonight with Ukraine/Russian situation

I am not talking about a quick flip, the goal would be physical bullion for a long term hold. You are just leveraging a tool to lock in the price you want and then do the conversion when you get the premium you want. What is the downside?

 

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I see where you're going now, and it does make some sense.

The only downside I can see is the transaction fees between multiple trades and the speculation that premiums would eventually fall.

 

Debt and centuries of conflict. I don't know that there is anything of great value in Ukraine, that would actually affect the world markets. The bigger threat comes from playing the sanction game with Russia. The US really has no reins to hold onto in this conflict. Silver is not really responding to anything.

 

Silver bounced off of $20 early this morning and now it's at over $21. It seems to be bouncing up and down from $19 to $22 lately.

 

Howdy folks,

Even before the Russian mess, gold and silver and particularly the miners had been going up. Hey, we were ALL buying back in December with prices down around $20. I bought my annual issues, some pucks and some ASE's. I also checked my paper holdings which at that moment were at a 'core' level - these included TGLDX, CEF, SIL, SLW (and PRPFX because is holds 25% in bullion). I started by adding PAAS which pays a dividend. I also started increasing my holdings in SIL. Recently I've added MGN, ASM and even more recently SLTOF and HUSIF. These are some very minor silver miners but the leverage is unbelievable. Daily moves can easily be into double digits - both ways. Take your Dramamine.

However, the leverage is ALWAYS with silver and with the miners rather than bullion. What you need to have is the momentum on your side. Right now it seems to be even before Crimea.

peace,

rono

 

I check out the silverbug articles if I want to feel better about what's going on, but the reality is that I have no idea if silver is going to go up or tank at this point. I am thinking of buying some half dollars at 16x face, but I am still not sure....

 

One thing I would say about gold and silver stocks. They are not a pure play just on pm at all. These stocks are usually used as contra stocks to balance portfolios, so most of the time their movement does not correlate well with pm at all. I own a couple, (actually the major business is iron or copper, but pm is a byproduct), but am just warning everyone that, "I think silver is going to go up so I will buy a silver stock" is not nearly that simple. Please research this subject before investing blindly.

 

Howdy,

I completely agree and didn't mean to imply otherwise. Bullion and mining stocks are two completely different animals. They're traded in different markets by different people for different reasons. That said, they do track each other over time, with a greater or lessor degree of lag. That's the whole premise behind the Gold/XAU ratio.

Fact is that for most of the recent bull run in gold and silver, the miners have been left in the dust and the gold/XAU ratio has soared to incredible highs as this divergence has widened. This points to what might be an opportunity. Just an opportunity though.

What make something a potential speculation to me is that it's working. It's going up before I buy it and as I start nibbling, it continues to go up. Not that it's a silver stock and silver is going up.

peace,

rono

 

Ural Mountains Foundry Honors Crimea Annexation With Putin Coins



http://www.themoscowtimes.com/busin...rimea-annexation-with-putin-coins/498642.html

 

Holy crow! That was fast! No moss growing here..