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<p>[QUOTE=&quot;Rono, post: 1623871, member: 6492&quot;]Howdy good people,</p><p><br /></p><p>Nice discussion.&nbsp; I&#039;m not much of a conspiracy fan.&nbsp; Are the pm markets manipulated?&nbsp; Of course they are - to the degree that anyone is able.&nbsp; It&#039;s human nature and to be expected.&nbsp; Any one of a number of large financial institutions are able to a greater or lesser degree impact the market in their favor.&nbsp; Cripe, if I was able I would and so would all y&#039;all.&nbsp; </p><p><br /></p><p>The long term fundamentals support both higher prices for all pm&#039;s.&nbsp; The central banks of the world are printing money with utter abandon in a race to debase their currencies.&nbsp; Most every gov&#039;t owes more than they are able to tax and to the degree they want to keep their promises, they have to monetize the debts.&nbsp; We&#039;ve got Unfunded Liabilities of over $100 trillion (social security, medicare/aid, various trust funds, pensions, service on the debt, the war debt, etc.).&nbsp; They&#039;re trying to monetize as much as they can so hopefully, they can raise taxes and reduce benefits suffiently to prevent insolvency without imploding the currency in some hideous inflation.&nbsp; &nbsp;&nbsp; At least that appears to be the plan.&nbsp; WTF knows if it will work or not.&nbsp; &nbsp; </p><p><br /></p><p>In this sort of situation, risk management dictates you own physical gold and silver bullion.&nbsp;&nbsp; I say dictate because even if you only give a finanical meltdown/hyperinflation a small probability - if it&#039;s significant the consequences would be so dire, that you really don&#039;t have much choice but to prepare to some degree.&nbsp; </p><p><br /></p><p>I like to overweight silver to gold because it always seems to make greater gains for me.&nbsp; Indeed, the present gold/silver ratio is running ~1/52 and historically it&#039;s more like 1/15-20.&nbsp; Back in 1980 when they peaked it was ~850 for gold and 50 for silver (1/17).&nbsp; </p><p><br /></p><p>I started investing heavily in pm&#039;s back in 2002/3 although I&#039;ve collected coins for over 50 years.&nbsp; I did this because I&#039;m a momentum investor.&nbsp;&nbsp; I look for trends that I can overweight in stock/mutual fund investments.&nbsp; Because I&#039;ve collected coins and financed a degree in Econ with proceeds from the Hunt Bros bull run, I jumped on this rascal with both feet.&nbsp; </p><p><br /></p><p>I&#039;ve been riding this trend ever since.&nbsp; Every so many months, the trend pulls back.&nbsp; Think of it like a saw blade - it&#039;s jagged but the trend is tilting UP.&nbsp; It seems to be taking a breather now.&nbsp; So what.&nbsp; Have you noticed that ever time it pulls back it&#039;s not as far or for as long as all the touts tell us?&nbsp; Every time. </p><p><br /></p><p>I surmise that this is because of the underlying demand for gold (and silver) that continues to set a such strong price support.&nbsp; This demand is something that&#039;s almost unworldly in its complexity.&nbsp;&nbsp; You&#039;ve got CBs in some corners adding to their treasury gold.&nbsp; You&#039;ve got investors.&nbsp; You&#039;ve got survivalists (albeit selling some these days to buy Bushmasters).&nbsp; You&#039;ve got industrial uses for both that are huge and growing.&nbsp; You&#039;ve got more and more institutions adding a pm component to their asset allocations.&nbsp; You&#039;ve got trading partners with so many gd greenbacks they want something else for a change.&nbsp; </p><p><br /></p><p>Will someone figure a way to artificially drive down price of either gold or silver or both?&nbsp; Of course.&nbsp;&nbsp; Will the artificiality last?&nbsp; No.&nbsp; Never does.&nbsp; Captain Price will set things straight.&nbsp;&nbsp; You&#039;ll see it, however, in the disjoint between paper price and street price when the supplies contracts and the premiums sore.&nbsp; Come on folks, this is class econ supply/demand curve showing Price Controls.&nbsp;&nbsp; Either supply falls short or the &#039;price&#039; get&#039;s adjusted via premium.&nbsp;&nbsp; If I think my AGE is worth $2000 and you&#039;re only willing to buy it for $1800.&nbsp; Sorry, it&#039;s not for sale.</p><p><br /></p><p>And so it goes,</p><p><br /></p><p>peace,</p><p><br /></p><p>rono[/QUOTE]</p><p><br /></p>

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