G0ldfinger

Let's not go down that road.

That's fine. But if you exchange "house" with "gold" or "precious metals", many on here would/could say that same sentence, I believe.

Sounds like there is ballooning debt on the other side of this equation. Inflation will sooner or later erode these short term gains. (I guess that's exactly the point of this article: the pain has been delayed.)

Cable TV, AFAIK.

Congratulations, you must have made an absolute killing. And now you have just started to rinse and repeat. Retirement in the Carribean getting very close now, I presume?

You should have listened more to Sinclair back then, it seems. He had his model, had seen that there had been an enormous overshoot (over the debt equilibrium price), and got out for good. EDIT: The point is that these cycles take long, they don't swing back and forth in a few years time, this is multi-decade stuff. And the belief in the paper force was strong after Volcker.

No, no. In the end, the long term silver holders will sell to the self-proclaimed trading geniuses who will attempt to trade the last bit of the silver bull / up as well as down. These guys have proven over and over again that they can't fail in these super-volatile markets.

Looks more like there is high spec graffiti on the outside already. Wooden floors. Hmm, my experience is that most people have no clue what a real wooden flooring is. Most likely we're talking laminate here, or maybe not even this and just PVC with some "wood" printed on to it.

Hmmm, friends bought around that time (2007) in Dublin. I think I warned, said something about gold... Ahhhh, what do you know...!? http://news.yahoo.com/s/afp/20110513/bs_afp/irelandeufinanceeconomyproperty

The Fed could possibly sustain a gold price at around $3,000 - $5,000 if they let the (shadow) banking system and the economy collapse. This would be in a truly [non-RH] hyper-deflationary scenario. Houses would go to almost zero in this case (no credit). If they support the banking system, but still don't give much about the economy i.e. don't print much more, they could possibly sustain a gold price around $30,000 to $50,000. This is the "support MZM" scenario (keep status quo, no QE anymore from here on). Essentially a factor of 1,000 on their current balance sheet valuation (at $42.22/oz). If they keep printing, your guess is as good as mine. This person is obviously completely clueless and does not know that you have to own something in order to sustainably sell it in order to keep a lid on the price. In any other manipulation attempt (naked shorting), the price would have to blow at some stage. IMHO, the Fed will not attempt to manage the gold price permanently as they know they can't. Remember, they've tried it before.

Good, thanks. This is not yet like 2008 - especially not in gold and oil. Silver would have to go below $24 for a 2008 repeat. Maybe we'll see it, maybe not. If silver goes to these levels and the gold:silver ratio goes below 60:1, I might swap back even more than I already have (yes, I made a few silver ounces on the latest moves by swapping silver for gold and then back at appropriate times). HOWEVER, this was a smaller portion of my portfolio. Here are the major reasons for buy & hold: - Gold is far from a major historic top when relative expensiveness measures are considered (see chart below for one of many examples). - Silver will follow gold in direction. It might overshoot gold. It might not. - It is therefore time to buy & hold gold, and, maybe to a lesser extent, silver. - Silver is riskier, so if you want to play safe, own more gold. - Have an exit strategy for your gold (and silver) holdings. There will be a time when shares, houses, almost anything will look (very) cheap compared to gold. This is when you'll exit, but we're not there yet. - Don't exit all at once. Average out, as you should have averaged in. - Trading brings (major) risk into a buy & hold strategy. Even mistrading the gold:silver ratio could do serious damage to a portfolio. - Don't overtrade. From the 2001 lows up to the recent highs (1 decade): - The $-price of gold has multiplied by 6.21, returning 520.92%, averaging a 20.03% annual return. - The $-price of silver has multiplied by 12.44, returning 1,144.45%, averaging a 28.68% annual return. What do you need more for a superb buy & hold strategy during the biggest financial crisis EVER? The price goes up, and the price goes down. On average the price goes up. So, don't worry, gold is not done here. Paper bugs and top callers: dream on! Here is how expensive gold is in comparison to the debt level of the US of A taking into account official gold holdings: http://gold.approximity.com/since1970/Gold_Price_to_External_Debt_Equilibrium_Price.html This should immediately crack you up if you hear anyone shouting about a top in gold. Yes, yes, there is always an intermediate top somewhere, somewhen. If you look at a price chart, there are at least ten intermediate tops every single day, hour, minute of the year. Don't sweat the small stuff!

Is the G:S ratio on its way back to 50:1 now? Two bearish silver articles. The first one of Moriarty, the second one of a friend of FOFOA, named "Costata" (FOFOFOA, so to speak). I recommend reading both, but the second one is impractically long. I also don't agree with these articles entirely. Moriarty has called an intermediate top, but IMHO he fails to see that it is intermediate. The FOFOFOA article is too theorizing (like some of FOFOA himself). I think the whole silver spiel can be summarized more easily by saying that silver has lost its monetary role a long time ago given above ground stocks are so small, hence there is more risk in it as an investment. On the other hand, flows (suplly and demand picture) and above ground stock IMHO imply that in a bullish upswing we could easily see the old lows on the G:S ratio, but it is not exactly easy to time this. http://www.321gold.com/editorials/moriarty/moriarty042511.html http://fofoa.blogspot.com/2011/05/costatas-silver-open-forum.html Independent of these articles, I do think we could see 50:1 or 60:1 another time before revisiting 30:1 and then 20:1.

Inflation is very high, going to rise. Growth in China and Germany bigger than expected. QUICK, SELL ALL COMMODITIES!! You couldn't make this stuff up. http://www.bloomberg.com/news/2011-05-11/asian-stocks-gain-on-economic-outlook.html :lol:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/5/11_Jim_Sinclair_-_Were_Nowhere_Near_a_Top_in_Gold!.html I agree 100%.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/5/10_Richard_Russell_-_Expect_Huge_Rebound_in_Silver.html

Spotted on JSMineset.

Yes, I fear so too (financially). Most of us are amazed that you are still trading in the PM markets. Anyway, good to see you back! Bubb wants to know more about your risk management, if you find the time. He thinks that it must be outstanding given that you have re-emerged now. I agree.

That's just what they did in 2008. Only then they were much more successful. Now everyone knows it is only a short-lived mirage.

Yes, that's VERY important. For every seller, there is a buyer. ... The China put...

Essentially, the upward correction in the ratio seems to have stopped at the red line for now, and we seem to be bouncing back down again. http://gold.approximity.com/gold-silver_watch.html

I have just swapped a smaller amount of gold for silver. That way I have converted silver bullion into more silver bullion over the past days, while staying fully invested in the precious metals bull and in non-paper assets. I would swap again at 50:1 and at 60:1, but I fear it won't happen and maybe that was it already and we're back to the races.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/5/5_Ben_Davies_-_We_Are_Now_Buyers_of_Physical_Silver.html

We finally have a G:S correction like in autumn 1979, just before the second leg up to the Hunts' spike.

Good for gold too:

Very tempted to use some gold to buy back some silver already. We're talking a profit of 30% silver already (swapped at 33:1, and now we're already at 43:1)!!