TrueNorth

Bullish yes, but this illustrates my point about them being dopey. Look how they bury the lead: That's the lead. And that's why they are bozos. It should read:

Exactly. They are all "jewellery demand. . . blah blah blah. . . jewellery demand. . . " and don't seem to have the foggiest when it comes to macro economics.

Is it just me, or does anyone else here think these fellas are just a bit . . . dopey?

Yes, I suppose. But because you sell silver at spot but buy your new gold at a premium, I haven't preserved a whole lot more on this swap than if I hadn't swapped. If silver continues to drop though, it will have been a good move.

Good point. Warpig, I watched silver get hammered in last autumn's crash and I wasn't keen to see it again. Based on the menacing clouds hovering over the market, plus Bob Hoye's warning, I swapped silver for gold the other day. Bob said to lighten up on the senior silvers in late May/early June, and I regretted I didn't take this on board and swap out for some good profits around £9.60. I hadn't considered the Yen trade Roman suggests, I simply wanted to get out of the volatility/vulnerability of silver for the mo. I am very bullish on silver and will be back in, big time again, once the dust settles.

Frustrating, but, would you want a mortgage in this market?

That chart of repossessions is something else. I am delighted I don't have a mortgage, but feel for my friends who do. One friend has a mortgage of £287,000 on a property that's on the market for £299,000. If it sells for the asking price, she will just about have the funds to pay off the mortgage plus the various fees triggered by the sale. If she gets an offer for less, she would be subsidising the buyer by taking a loss on the place. I really hope she gets any offer and takes it. I expect interest rates will rise next year, and even people like her on a good salary will have trouble meeting their increased mortgage costs. I think more people are in this position than I realised. Pretty much anyone who bought in the last few years in treading water at best.

Interesting to hear that RH. Hoye's forecast last week had a similar impact on me, and I lightened up on the silver a bit. Didja hear Hoye's lastest (yesterday) on Howe Street?

Did gold just get nailed for ten bucks?!

wren, speaking of belts, I am thinking this may be the way to go: purty, innit? More demure options available here

Foreclosure wave gets bigger

I would agree with you on these points. I just traded some silver for gold, as evidence of my short-term bearishness. Naturally, the silver price increased promptly thereafter.

Yes, I agree. In which case I also don't expect it to depreciate.

I agree. Gold is the barometer. When things are "stable" "again", its price will drop. Until then, I can't see it going down more than, say, 10%.

Yep.

A propos of this, found a June 2009 piece by Bob Hoye on the gold:silver ratio -- Institutional Advisors, 22 June 2009 Gold/Silver Ratio Warning "Get Your Kicks On Route Sixty-Six" With this afternoon's drop in silver, the ratio now sits at 65.93.

Another good pece hot off the press from Stewart Thompson, Graceland Updates: Dow Fire Starts. Buy Gold & Stay Strong Stewart Thomson on 321gold 11 Aug 2009

Thanks for explaining BigT. I appreciate you taking the time to do that. I guess I don't fundamentally agree that a period of happiness and light will break out. I'd love to be proven wrong, however. My gold's not going anywhere.

I know that exact feeling. I suppose that's why technical analysis is so popular -- it gives the courage to your convictions! Am curious what evidence gave you the notion gold is going down below 500?

Me too, but haven't begun the swap yet. I am 2:1 Silver:Gold. Are you doing this via GoldMoney, Pixel8r?

Now that the CRIMCOMEX -- has opened, gold and silver have both fallen off a cliff. Ratio now 65.79.

Interesting Dr Bubb. I am watching the Gold:Silver ratio. I dug up an old article by Bob Hoye from last November (Gold Sector Update - NOVEMBER 25, 2008, posted in the archives of 321gold here Bob Hoye on 321gold), about gold in a credit contraction. He notes: By my calculations using ££ we're now at 65.75 and turning up as of this morning.

Clive Maund's Gold Market Update published yesterday. I always find his analysis very informative. Full article here: Clive Maund Gold Market Update 9 August 2009

Clive Maund has just published his gold and silver market updates yesterday. From the silver report: and Clive Maund Silver Market Update 9 Aug 2009

Thanks Roman. I was wondering if it was the Dollar Effect.