romans holiday

Bob Hoye's latest. Some thoughts on the g/s ratio also. http://www.radio.goldseek.com/players/hoyeplayer04.20.10.php

Dollar on steroids today. If we see it strengthen over a month to 84 or so, silver could go to 15 odd.

But wouldn't you agree that many buying SLV are just trading the price of silver? They are not so concerned about having a long term allocated bullion position as trading the silver dollar price for a profit. As Jim Rickards mentioned on KWN recently, these financial instruments usually state outright the risks facing investors. Isn't it just a case of investors not being naive and doing due diligence? Most market participants simply do not share the kind of "puritanical" approach to metals that gold/ silver "bugs" do. Of course, this doesn't mean that there shouldn't be more oversight and regulation of these financial products.

Darn it. Just signed up, only to find they do not ship to Korea or New Zealand.

I think I'll get some. Once I make my millions, they could be ideal for gifts.

That is a very nice coin. So they can be bought for $551? Is there not a premium to be paid above that?

More like the Recovery is a myth. http://news.goldseek.com/RickAckerman/1271397600.php

I was referring to palladium. I use silver for paperweights... they are also very good as door-stoppers. Gold down a bit today.

Yeah, but the "fix" is just a high in the short term. We get the junkie stage bfore the zombie one.

Further south.... 100? [check out that truly awful chart]. The Yen carry trade is back on again... it may take a couple more bops on the head before investors get it.

Another round of deleveraging and it could easily head back down to 200. Of course, you could always sell, hold your nose and take some profits. Or then again, profits could be taken by swapping for gold. I'm sure that gold would hold up a LOT better should we see deleveraging round 2.

Welcome to GEI. There is a good chance we'll see another round of deleveraging at some point. Yen would no doubt spike against everything else at this time.

Yes, I got out of Yen a while back. The chart against Euro and dollar suggests it has turned. The only fiat I keep for trading/ hedging purposes now is the dollar. Still, it looks like further jawboning to me. How can they forcibly devalue the Yen? They couldn't introduce a Chinese style fix... that would close the US market to them.... not to mention other markets. They couldn't just suddenly declare the Yen to be worth a third less... this would involve the dismantling of the fx market... not to mention riots at home. All they can do is try to scare investors.

Yes, I made a 10% profit on my trading position which was sold for dollars at 17.90. Previously, I had a large core buy and hold position in silver [non-trade... waiting for a lower ratio etc] besides a core holding in gold. I was treating gold and silver the same, though I'd trade a small part of that silver. I no longer think silver is a "leverage" on gold, and think it will remain very volatile against the dollar, hence the conversion to gold. Now with a larger core holding in gold, I will feel much more relaxed to trade a large position in silver [looking to increase it]. I'm bullish on both silver and dollar, and I don't think the volatilty we've seen between them is going to change anytime soon. This silver/dollar trade is also a dollar hedge against a rather large gold holding. Different strokes for different folks. Anyway, I'm sure silver will break out at some point for the silver bugs.

As I said a few times now, most of my core holding in silver went into gold. This was sold at 15.50. Comprendo? As for my trading position, sold at 17.90 Lets see if silver can hang onto its high here.

I'm not negative on silver. I just don't think silver will behave like gold. I am super bullish on gold, and also bullish on both the dollar and silver.... which is why I think it makes sense to accumulate gold, and trade silver/dollar.

Which raises the point; do we really want to see gold rocket immediately? I do not need to see a rocketing price to be confident that the price will increase. I'd rather be able to continue buying a decent amount with my salary for another year or two.

Are any silver bugs considering swapping some of their stash to gold once the ratio gets below 60? I'd swap a little gold for silver, but only if the ratio went to 80/ 90 or so.... and then swap back on 60 or so. I think the old range of 80/50 could be too optimistic in this environment. A conservative approach.

I'm hearing ya, which is why I'm basically bunkered down in gold. Forget about 10% for insurance.... think more about 60% as a prime currency. That said, I'm keeping a decent sized dollar hedge... and it is only this I would trade for volatile though relatively safe silver on silver lows.

Silver and gold both spiking here. Is it a spike or a break-out though? I don't trust silver to hang onto its gains like I do gold, which is why I moved my silver into gold and dollars. But the speculator in me is still fascinated by silver, and will be keen to swap my dollar hedge for silver from time to time.... but only on the lows.

Jeff Christian is not a gold bug. He has a more pragmatic view of the markets and takes them as he finds them. Gold bugs tend towards "puritanism" when it comes to the markets.... ergo... they will not like what Jeff Christian is saying. I also think there is a bit of justifying going on here; gold has not gone to the moon because of evil corrupt markets.... rather than a re-thinking of the premisses that gold bugs tend to buy into. Still, it makes sense to diversify the ways in which you hold gold.

Yes, will be an interesting one to watch. My main prediction is the US dollar price of gold [as investors/ traders/ armchair macro-economists, surely this is the only one worth bothering about] will incrementally strengthen in the aggregate and follow the thin blue line. This would represent the gradual strengthening of gold as an alternative currency [remonetization]. There is a good chance that gold could correct to the line, and dip to 3 digits as a "repeat" would suggest. There is also a good chance that gold will track sideways and consolidate... reaching the blue line later in the year. What I think unlikeliest is a parabolic outbreak. The dollar is still too strong for this to happen imo. 1160 looks to be a pivotal point: http://www.reuters.com/article/idUSTRE6361B120100409

Another option besides the world blowing up and gold going orbital, is gold just becomes the prime currency. In this scenario, currencies might be stabilized/ re-fixed to gold, and you could just keep gold or swap it for the local currency on the purchase of assets. It's just a financial crisis people... not the end of the world. PS: Just finished listening to Nick Barisheff and Jeff Christian on FSN..... shows up some of the stories going around as paranoid fantasy. I wonder if the latest one about the ScotiaMocatta vault being near empty is just a weak attempt of scare-mongering. Don't believe the hype.

I like the sound of that.... an Indian summer.

Well, I didn't expect to get the exact top. Only trading a minor position..... as a dollar hedge of sorts against a rather large buy and hold position [percentage wise] in gold. Edit: silver is not my core currency... gold is. If silver were my core position I wouldn't be trading or selling it. What works for one, might not work for another. There is a good chance I get it wrong on silver, but this does not concern me too much due to a large gold holding. If silver does go the next level, I think it is likely to remain volatile and should dip at some point to where I exited.