G0ldfinger

Well, you need an exit strategy. Mine is to swap silver for gold at ratios smaller than 35:1, and I intend to do that in steps (while getting out of gold I make dependent on my other measures that don't include silver). The question I am asking myself right now is how much we could overshoot what has happened historically. Historically, I'd say, start winding down from 35:1 on and get out entirely by 15:1. BUT Dave Morgan has just reminded me (this week's FSN silver round table) that we have now 4-times LESS silver above ground than in 1980, and put on top of this the new markets e.g. in China. I think Morgan thinks we could se 10:1 (he said so on FSN a couple of weeks ago), and in fact I think so too. So, maybe the whole 35:1 level is a joke, and averageing out I shouldn't consider before we're talking 20:1 anyway. The Hunts of course skewed the picture in 1980, but that ratio had been reached before (see charts above), and this time we have the JPMorgue fudging up the market so badly that it could explode again. Anyway, I guess 35:1 will pass and I'll continue to hold on. This is my own money, so I'll take the risk. For a fund, I would possibly try to stick more to the history and start slowly averaging out and try to be out by 15:1 latest.

Hmm, I am pondering the idea that this is a big one. Someone made an effort to run the weekly close over $35. A hedgefund must be braindead if they haven't realized yet what's going on in silver -- I mean, just momentum-wise. So, how many more will jump on the bandwaggon next week? From historical experience, I am inclined to think that we'll stop here at 35:1. But there is no script written for this. What if someone at a large producer or at the JPMorgue panics? We could see 20:1 in no time, even 14:1. I definitely think we're going to see 20:1 over the next few years. But what if it is NOW, what if it comes earlier than expected? What if we saw a run-up first to 20:1, and then a year or two later to 10:1? I am not going to swap or sell any before 35:1. But right now I wonder if I should hold on to it anyway, rather than trying to outsmart the ratio. I might swap 1/3 at 35:1, another 1/3 at 20:1, and the rest beyond 14:1. http://gold.approximity.com/since1968/Gold-Silver-Ratio.html

I think at some stage over the next 2-3 years we will reach a "sweet spot": - houses will be very cheap in gold (have stagnated or fallen nominally), - interest rates will still be fairly low (thanks to central bankster manipulation), - inflation won't be catastrophic yet (thanks to the sleepy sheeple). That will be the time to buy a house either outright, or with a good-sized deposit on a fixed interest mortgage. I would almost suggest the latter one, since the money can possibly be put to better use in the markets than just completely sinking it into a house, and worsening inflation will take care of the mortgage given you have a safe job.

Very interesting. Let's see if they get it through. I guess the mining states will have more luck with it.

Squeeeze.

Nice action.

From:

Subtract 5% RPI: -7.8%. CRASH!!

That's why I am posting these charts to give you a clue when to buy silver/gold, and when it will be time to buy houses again. Don't you see the cycles?

Is the sell-off caused by Trichet's "strong vigilance"? Mwuahahaha!

As you don't seem to appreciate the special properties of the shiny yellow stuff, you might prefer to first read up on it. I suggest you start at page 1 of this thread. Enjoy & see you in a few months time then!

1971?

Hey Pixel, great call back then! Now, silver has obviously already left the chart, but what's next?

Hey Pixel, what's next now that we broke the line? http://gold.approximity.com/gold-silver_watch.html

Aye. Right on track! http://gold.approximity.com/gold-silver_watch.html

Houses -- such a sucker investment!! http://gold.approximity.com/since1968/UK_H..._in_Silver.html Still more to come: http://gold.approximity.com/since1968/UK_H...Silver_LOG.html

These are London Fixings, BTW, and not CRIMEX.

http://gold.approximity.com/since1968/Silver_GBP.html http://gold.approximity.com/since1968/Silv...BP_RPI-adj.html

Wake me up at $1,650.

And he (King) does everything so they will continue to make the wrong choices.

Just put in another 30-year high.

Oh, uh, squeezy-kins.

YoY: subtract 5% inflation. ---> CRASH!

And inelastic to the price is my guess.

As indicated below, we had a quick bounce back. People want the real thing. The paper shenanigans don't work so well anymore. Who wants some paper silver? Paper food anyone?