G0ldfinger

I think it's time for me to start buying gold & silver shares. The blood in the street is knee-deep, so to speak. I know, it could get even deeper. But knee-deep is pretty good for me. So, as a bullion-only buyer so far, with not much knowledge about mining shares, here is what I want to do: (1) I only want to consider (almost-) producers, no pure exploration games. (2) I want them to operate in mostly geopolitically safe areas. (3) I want them to have low costs per ounce, with a good buffer against falling prices, and good reserves/resources. (4) I want them to be cheap per ounce in the ground. (5) I want them to be profitable, with cash at hand, and not at the mercy of the banksters. (6) Optimally, I want to be able to put them in an ISA. One idea of mine was to have a look at Puplava's portfolio and pick a few that I like. A few names that I have in the back of my head, but haven't researched them in any detail so don't really know if they fit my above profile: - Yamana - Silver Standard Resources - Minefinders - ... I guess this post is in the wrong section, so maybe I am going to repost it in the mining section. I'm possibly outing myself as totally clueless/naive here.

A person in Brussels got recently mugged of 44kg gold inside the bank when opening his locker.

Take Hugh Hendry (lates CWR show). He tells you what? To wait until gilts are at something like a 2% yield and then piling into gold. What's his evidence? How can he be so sure this will work out? The secret is possibly that this is not all that important to him since he is widely diversified, and maybe gold will only ever play a very small role in his portfolios. Also, if he is so convinced that gold will go to $3,000 (or $6,000!) as he says, does it matter so much to time it to the second, given that it is at $700-something? And if he was wrong, which very well could be, he will never get back in, waiting for $500 forever. It's monthly accumulation for me. I can't time this market with the outsider knowledge I have.

? What do you think is the hyperinflation thread (and quite a few others) all about? The mainstream deflation view at the moment, including the first part of Frizzers last CWR show, does not take into account ballooning deficits and possible action by creditor nations. IMHO it's too dangerous not to be in gold. If we have more asset price deflation, fine, continue to accumulate. Demographics and money printing will dominate all influences of slowing business activity in the end. This is of course no short term view. BUT a bond market dislocation and currency crisis COULD happen short term IMO.

I guess like many others on here: I declare herewith that I am very happy to buy the whole world gold stock at $0.00/oz.

That could be something in line with Barry Ritholtz's opinion on markets' irrational overreactions (down to $500 and then up to $2,000 shortly afterwards in an unprecedented record time). I think it' unlikely since it would possibly lead to a COMEX default. I also think it's too dangerous not to be in gold and taking a huge short term gamble risk. It's steady accumulation for me.

BTW, Happy Halloween from the iTulip crew!

"The trust in paper assets is gone. Investors are piling into hard assets." (http://www.stern.de/haderer)

He writes "a small part" of the savings of 5% of all Germans. IMO, if 1% of all German savings was to go into gold it would propel the price to $10,000/oz overnight, with a tendency to drift upwards from then on. VW kinda thing.

I've moved on to Christmas already. Local supermarket had Santas out late August, so I feel somewhat late here.

Did he try to sell you a bridge?

I ignored the warning, and no Russian girls in Greek positions showed up.

Gold crap cheap. Result: Dubai out of gold! Didn't someone on here write the other day that people were eager to sell below spot in the East? I'd say that was a false alarm. http://www.bahraintribune.com/ArticleDetai...mp;CategoryId=2

An average of $1.52 looks very low. I'd be surprised if any of the North American mines can produce at these costs. It's a wonder then that silver mining shares are so depressed. They should make shed loads of profit, all of them (maybe that's a sign that the figure is somewhat off?). Frizzers might know more on these kind of mining issues.

Silver now bouncing around as crazy as the Dow Jones. This almost worries me.

I think this was also mentioned already quite some time ago in "Britain from above", or so.

(1) Plunge Protection Team (PPT) is a term used for the President's Working Group for the Financial Markets. What is the problem acknowledging them? They're not at all secret, and they have in fact very recently announced over and over again that they will actively manipulate the markets with the money they get granted (buying banks, insurers, commercial paper etc.). Also, how can you disregard that they are active in gold if Greenspan repeatedly publicly said that central banks stand ready to lease gold should the price rise? (2) There is first of all a retail product scarcity in gold and silver. There is also a potential that this could feed through to the LBM and the COMEX, including a possible short squeeze or defaults on the COMEX. For this to happen we would need to see some big money moving back into sector, maybe even some central bank buying. It is not unlikely that this could happen sometime in the future. I wouldn't disregard it. Also keep in mind that it isn't only coins that are difficult to obtain now.

I've never said that timing is easy. I am also not too interested in it, which is why I am averaging in. If things go pearshaped much quicker than we think, and it almost looks so at the moment, we could see 5-10 shrink to 2-3 years, who knows. I just would try not be impatient and/or try and trade the gold market. I think the traders will mostly lose money as long as we see volatility like this.

That's a very interesting one, if true: http://goldismoney.info/forums/showpost.ph...postcount=21567 So, in other terms, maybe JPMorgan shorts the heck out of gold on the COMEX to get artificially low prices and then shows up in South Africa and expects mines to actually sell at these laughable prices. I guess they think they're clever.

I think it is factually completely wrong to claim that the spike in 1980 was coming from jewellery buying/selling. All reports I have ever read implied that the spike was solely caused by investors and central banks. Jewellery played no role as entirely expected and logical. I think the DJIA:gold ratio will go below 2.5:1 over the next 5-10 years. I think an average UK house will be for sale below 100oz during periods over the same time interval. I think gold will reach nominal prices north of $2,000 over the same time period. Gold could do much better than these conservative estimates, I should say.

My previous posts on LBM volume: According to data provided by the LBMA, approximately 103,000 metric tonnes gold have been exchanged from Oct 1996 to Sept 2008. That makes approximately 8,000 tonnes a year. This shows that price setting in London alone (not to mention the COMEX) by far dominates jewellery related transactions in terms of volume. To make this an easy example: if activity in the LBM just increased by 50% up to 12,000 tonnes a year (+4,000), jewellery volume (for simplicity 2,000 tonnes) would be double made up for. To extend my previous posts for an inclusion of the COMEX trading volume: http://www.galmarley.com/framesets/fs_trad...utures_faqs.htm COMEX: 120 tonnes times 250 trading days is 30,000 tonnes volume per year. In comparison, jewellery: 2,500 tonnes a year. In a financial crisis where investors wake up to gold for good, lack of jewellery demand won't matter much.

http://www.dailyreckoning.com.au/gold-bull...igh/2008/10/23/

To make this any easy example: if activity in the LBM just increased by 50% up to 12,000 tonnes a year (+4,000), jewellery volume (for simplicity 2,000 tonnes) would be double made up for. In a financial crisis where investors wake up to gold for good, lack of jewellery demand won't matter much.

According to data provided by the LBMA, approximately 103,000 metric tonnes gold have been exchanged from Oct 1996 to Sept 2008. That makes approximately 8,000 tonnes a year. This shows that price setting in London alone (not to mention the COMEX) by far dominates jewellery related transactions in terms of volume.