Is anybody still buying silver and gold?

Apmex:

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1 oz Gold South African Krugerrand - Random Year
[TD="align: right"]$1,720.90 [/TD]
[TD="align: right"]$1,757.89 [/TD]
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To get it at 1757.89 you have to buy 50 more coins at and you have pay by check (wait 2 weeks to be cleared) and also there is shipping & handling charges. So you are comparing a mass order of random year bullion (some of these coins are rejects) with your LCS?

 

Thanks for the clarification. 50 oz.s? I didn't realize that you had to buy that much. I'm sure there are mail order sellers who have better spreads for the small investor. Last coin show I went to there was gold at or just above spot, even BU modern pieces, but that is a lot of money to tie up.

 

This looks like a good buy for 10oz Silver




http://www.apmex.com/Product/62541/...burg_Glacier_Set_MS_69_PL_Better_FS_PCGS.aspx

 

Be careful when buying coins at spot price since it tell tell sign of a fake. Personally i don't buy 1 oz or even 1/2 oz gold coins, i typically buy fractional granted they sell at higher premium over spot but at least the risk is minimal if it gets lost.

 

I'm also in the mood for platinum and have been looking for some fractionals. I can't seem to find any fractional palladium less than 1/2 oz which is what I'd prefer, but palladium is pretty typically around 20x silver anyway, where as I think platinum is a better buy right now.

 

The USD sharp rise to 79.39 in Asia, really kicked PM down, gold to 1688, recovered currently to 1697, and silver down to 31.47, currently 31.75. Guess it will be a very interesting day on the Euro and US markets later.

Jim

 

The primary technical support level is around 1600, and the long term trend line is about 1515 so until those levels are broken, I would guess the bull market is still in place. [per Louise Yamada, not me]

 

We'll be back to $1800 plus by the second week on January. Europe continues in crisis, the U.S.'s economy is fundamentally connected to that though there is the perception that the dollar is a safe haven. Ultimately Asia has the power of the purse strings and they are gold based. The more volatile this market is the more money the insiders are making in puts and calls, high frequency trading, etc..

 

I don't think any Asian nation is gold-based. But they may have the power because of their manufacturing base and high savings rate.

 

Point well taken.

Was just watching Gartman on CNBC who is projecting gold at $1450 or so. Supposedly the Chinese made a major purchase over the weekend which did nothing to support the spot price.

We have seen all sorts of opinions on crystal ball projections--the fact is that no one knows but we know what the trend is--there are simply no safe havens, PMs remain the closest thing. Ron Paul calls gold "insurance", I guess there are limits to how much an investor should have. It is a heck of a lot better than stocks.

 

On that point, I would say that no reputable dealer at a show will be selling fake coins without fully disclosing that fact.

I have found that the modern .24 oz. U.S. coins in capsules trade for very low premiums, I have picked them up at melt. Big question is why? Many are MS/PR69. I guess no real collector market on those.

 

Just a clarification it is not all of Asia (Japan) but it is India and Chinese consumers are the ones buying up gold and silver in mass last 5 years. Russia is catching up with US btw.

Source
2010 2009 % change

India 745.70 442.37 +69 Greater China 428.00 376.96 +14 United States 128.61 150.28 -14 Turkey 74.07 75.16 -1 Saudi Arabia 72.95 77.75 -6 Russia 67.50 60.16 +12 United Arab Emirates 63.37 67.60 -6 Egypt 53.43 56.68 -6 Italy 34.85 41.40 -16 Indonesia 32.75 41.00 -20 United Kingdom 27.35 31.75 -14 Other Gulf 21.97 24.50 -10 Japan 18.50 21.85 -15 South Korea 15.87 18.83 -16 Vietnam 14.36 15.08 -5 Thailand 6.28 7.33 -14 TOTAL 1,805.6 1,508.7 20 OTHER 254.0 251.6 1

 

As a long time investor in stocks, I'm not so sure about that. A decade ago, stocks looked clearly overpriced. But now I would view the two asset classes as about equal.

 

Consumers in India have always liked silver. The buying in China is more recent and more of a catch up. I don't think either case rises to the level of claiming their currency is backed by gold or their economies run on gold [or silver].

 

Gartman has no better idea of what will happen to gold than most of us. If people want to believe him, that is their problem. He has changed his mind several times on gold, and almost always after it has changed direction. Gold price as we see it, went down because it is denominated in USD which at this time is 80.30, and people are puling money out of gold into cash for the sidelines, or into foreign exchange for USD/Euro exchanges.

If you look at the CDS rates, Europe and most of the rest of the world "Big Dogs" are not getting better. Greece looks much more towards default than last week. If the Euro union continues towards defaults, I think the USD will be the largest gainer, gold will find support at 1625- 1675, silver about where it is.

I suspect buying gold here is a contrarian action, and I would myself use GLD or SLV. If one was adept with market, I would think a GLV, straddle option would alleviate some worries. IMO.



http://www.cnbc.com/id/38451750

 

This will be very interesting to watch. I am a bit leery of the USD. We should have never engaged in currency manipulation, regardless of what the Chinese have done. A race to devalue the currency is exactly what happened shortly before the great depression. What would happen if the Euro collapsed? Would this make the U.S. Dollar more valuable? Maybe temporarily? How much do we have invested in Europe? I see bad times ahead for the U.S. Dollar. Let’s look at what is going on right now with the pre-elections. Say for instance the left holds on the white house. They would certainly not throw entitlements and big spending out of the window. How about if the GOP takes the nomination? They most certainly would cut entitlements, and other spending.. I predict the first would mean an accelerated collapse of the U.S. Gov. and the USD as the world currency. What about the later? Once again an eventual Gov. Shutdown and collapse of the world currency. Why? Because as soon as entitlements cease to exist you would have mass pandemonium. As soon as you throw welfare out of the window, along with social security, you have Occupy Wall Street x 100. You think Greece was bad!? Heck you win a basketball game in this country and people start flipping over cars. Could you imagine L.A.? When this hysteria sets in, people will once again demand their entitlements, which will essentially lead to another gov. shutdown and collapse of the dollar.

All the meanwhile you have precious metals just sitting in the earth. Something that has to be physically dug out of the ground. Something that actually has value and purchasing power.

A new world currency on the horizon? Debit based swapping as China and Russia are doing? Precious metals and commodities as a real value of currency? Heck if I know, but the day of the American Dollar is coming to an end folks. Also I would just like to mention that cnbc is owned by General Electric, which makes me very leery on any of their money watch or investing reports.


Silver2012

 

Well, I realize everyone has their opinion on these areas, but I do not expect the USD to become worthless, or anything even close. If anything I expect the value to be such that it will continue to be the preferred currency of the world.

Also your scenario that once elected the politicians will even come close to doing anything other than what they have done the last many years doesn't stand. Once in, they see things much different and realize that business as usual is the most beneficial to their longevity. ( any more and I would have to delete it as being to political ).

Also just as a note, since 2 yrs ago, 51% of NBC/CNBC is owned by Comcast, 49% by GE.

All IMO.

Jim

 

I agree. The next 50 years will probably net-out to be a lot like the last 50 years for the dollar -- with a gradual but somewhat uneven decline in value -- some very bad periods, and other very tame periods. Everyone will adjust to it, just like they have always done. That said, I wouldn't buy a 30 year Treasury right now, and I wouldn't put 100% of my net worth in PMs.

 

Sometimes my fingers just start going, and I have no clue where it comes from. I'm not even sure If i believe what I posted above.