Pixel8r

You have chosen still to ignore what I am talking about, so I will lay it out for you again as clearly as I possibly can. There is a massive financial crisis going on, the banks are all actually bankrupt and money is being printed all over the place to stop the meltdown. Just say Greece goes into default and the EFSF does not get their new 2 trillion dollar rescue together, the contagion would quickly spread on to Italian and Spanish debt. This would lead to a derivative induced nightmare with banks going bust all over the place. Holding paper instruments on precious metals would leave you in a very risky position, you would have massive counter part risk. That is what owning physical precious metals gets around, they are no one else's liability. So in short while the financial system is at a point of maximum risk holding paper PM (shares or options in unallocated metal) opens you up to the risk of the thing you should be buying physical metal to protect you from. Yes sure you will be able to make more fiat money, until it all breaks at which point you will lose everything. Unallocated paper PM's are subject to massive counter party risk, especially in the largest financial crisis the world has ever seen. I have no idea as to why you continue to ignore this fact, is it purely greed? This is the last time I am going to talk about this on here as I have said it many many times before.

I have taken the opportunity to swap some gold to silver today via GM, It seems a good way to handle the swings in the market to me. I have done 3 swaps now and each time it has worked out well for me, hopefully this time will as well.

That should mean we get an explosion upwards in price over the next week then, if your last call is anything to go by.

Increasing Demand for Silver by the Solar Energy Industry Posted on August 16, 2011 by SilverPrices.com Editorial Team

Why do you always post negative stuff? Gold, Silver and the miners have been doing just fine better than almost all other assets yet you only ever post negativity.

Some of us have for ages.

Can you see it yet? Start of september and up 4% today.

Here's a few must read paragraphs from Ted Butler's latest report; Still think we are going sub $1500 DrBubb?

Reminds me of this old classic; http://www.youtube.com/watch?v=tLxDRePUwEY

Well I think the move this summer was due to the continuing worsening of the situation, I am expecting this September to be even more dramatic than usual. The paper price of Silver has been beaten up from the 5 margin hikes, but all that has done really is increase the demand for the physical metal. In the end the physical demand will over power the paper games. Did you see this snippet from Ted Butler's subscription service, which was published by Ed Steer today? It looks like this could be the start of the commercial signal failure which has long been talked about. The commercials buying in a rising market certainly talks of pent up momentum to me.

Because September & May are usually the best months historically for gold and silver price appreciation.

I think that $50 is on the cards for September and once we are through it it will act as support, bit like the $1000 level for gold.

For any gold bugs on an apple mac, check this post out on 24knews - http://www.24knews.c...&p=14595#p14595 It's a cool way of adding the kitco gold and silver charts onto your desktop and having them auto update (you get to specify how often they are updated), you can also control size and opacity. My desktop now looks like this;

Longterm Logarithmic Gold USD Chart. The big question for me is, are we going to break on through to the other side?

RH is turning into GEI's very own contra indicator, call a top again please.

The trouble is that they can't due to the amount of debt and mortgages they now have on their books. Ben Bernanke has just promised to keep rates at zero until at least 2013.

I thought I better post this update here as well. I have been creating this graph since 2008 which many of you will have seen, I am amazed that it is still working. It is a log chart of gold in UK pounds, the curve has proved as it has been tested and the reaction from it has been dramatic. If this continues to hold we should be seeing at least £1800 an ounce by this time next year.

I don't think it would have any effect after maybe a small correction. The graph below shows the response of gold to real rates since 1970, which you can see is positive till rates are 3% over the inflation rate. So really for gold to start turning negative we would need rates to be around 8% currently, which is miles away from the current rates.

Yes but don't post there much, have added an interesting link recently.

Do you mean Endeavour Mining EDV thats used to be Endeavour financial? Here's a chart of EDV which shows they aren't 'plumbing 2008 depths', although not a stella return they have been steadily climbing ( i am up around 40% in the 2 years I have owned them). Once you now a bit about EDV you can start to understand what the last to years have seen. They where a financial company providing merchant banking services to the resources sector, over the last couple of years they have transformed themselves into a producing gold miner by the purchase and optimisation of Etruscan. They also made a hefty profit out of buying and later selling a large portion of Crew. I own some Endeavour mining and am actually excited about their prospects (have recently doubled my holding in them), their management seems top quality to me. They have one operating mine and a load of sites in the exploration and feasibility stages. They also have a large amount of cash on hand (around $200 million) which they are looking to acquire another miner which to combine into their outfit and move them from junior to mid-tier. Just from their one current producing mine, they are on track to reach a P/E ratio of 2 in 2012, which means to me they are currently very cheap and have plenty of upside to come. I don't like buying miners that have already had big moves, prefer to try and find ones that have that to come.

My thoughts on this graph are that gold and silver miners are unbelievably cheap at the moment. Their main mining expense (Oil) have fallen substantially against gold, while the shares have not been rising at the rate of gold's price rise. When there next quarters reports come out they are going to be showing amazing profits. I think you are right and we are going to see a bull run for the mining stocks start very soon.

http://stockcharts.com/h-sc/ui?s=$CRB:$GOLD&p=D&yr=3&mn=0&dy=0&id=p79568295049

My feeling FWIW is that silver is about to go ballistic, once we close above $42.50 I think we will quickly go to and through $50. I am expecting to be approaching $60 by the end of September,

Sometimes things appear that they act as resistance because he has said so in advance.