Wow, this is really hard. Having sold out my stocks, sitting in cash, is hard. I still think there is going to be something coming down the pike that will pop the stock market bubble. I don't know when, or what, but, holding physical feels good, but stocks make me nervous right now.
<<Without YDM and his knowledgeable, sometimes fun, sometimes perplexing, sometimes deeper than out of space posts, this would be a much quieter board. He is a very dedicated SLW stock follower and poster.>>
I will second that. He is one of the reasons I dial in at least once a day. Even if I do not agree with all of YDM's ideas, he is kind enough to share them and they get me to think and test my own strategies in ways I would not otherwise.
'Ca$h' = Silver when its $26 /oz
Re: Hard Sittting on Sidelines in cash
Did you say "ca$h"? huh ??
If I had any cash that I did not need handy to trade stocks of silver producers going up fa$ter than silver, which is widely expected to hit $26 in 2010, probably in the first quarter,
then I would definitely $wAP almost ALL the "ca$h" for SILVER,
because silver is widely expected to hit $26 in 2010, probably in the first quarter.
uh . . .
from $17 to $26 is a +50% gain in the first quarter - in only 3 months !!!
Did I mention that silver will be $26 before April Fool's Day?
Why O why did you not buy before New Years Eve when everything was stuck at the lows waiting for the plung protection team to come back to work?
The doom if the fiat federal reserve note (FRN) is fast approaching - unless by "$itting on Ca$H" you mean actually po$$e$$ing phy$ical gold & silver bullion bars, rounds, coins, etc, because that will soon be the only REAL form of "CA$H."
Anybody who thinks holding US FRN<$> is "safe" may be beyond redemption, such a monumental educational precess has yet to be fully digested . . .
As a start, read this:
Prepare for Greater Depression
If your depression is not greater after reading this, it can only be because you are already prepared.
Just so you know what's ahead:
"The current, global financial system is in the process of coming to an end – one way or another. History teaches us it is highly unlikely that this transition can be accomplished without economic catastrophe. As the only superior currencies in existence, it is inevitable that gold and silver will benefit, as the inferior paper currencies (which we mistakenly call “money”) suffer the same deaths that have awaited every other fiat currency, throughout history."
'Greater Depression' More Bullish for Gold than 1930s
21 comments - by: Jeff Nielson January 06, 2010
But I make silver jewelry and I have watched and bought silver for years. I don't think it is going much over 20. I think gold decouples from silver even more because of the action of central banks around the world. I have been here before and held out to buy cheaper, because I do buy some to use it. Maybe this time will be different, but I am not sure. I do think gold holds 1100. I do hold physical silver and gold, in antiques, bullion and coins. I keep my IRA in cash for now to buy back later. I keep some cash FRN in the bank because I run my own business.
I sold 80% my position at my pre appointed goal. I've already missed about $4K, but I am rolling with the other 20% till February.
You have an objective, you have fears, you work them, they are your tools. Until you see the stats on unemployment post XMAS turn, this past rally has no validation, it's a mo mo rally, and money you've described in pots you've worked so hard for, you leave alone so you can sleep.
I would say, if you can stand a little income and a little risk, is MO. Try to grab it in the 19's and sell a covered call at $20 for about three months, and make sure the covered call expires one month PAST the call expiration date. That stock is a winner and you can make 20-25% a year from that process.
The other one I like is PHT. Put in a bid at $13.95-14.05--it will fill and pay you 11.5% a year, it's like a money tree. A junk bond fund, I've vetted, it's a winner.
I'd put half my stash in those two, and if they go up 10% sell. Keep your powder dry, the backswell is coming, and hopefully it is a big one that anticipates 4% overnight rates from Bernookie, around the end of the Fall.
Hey Woodsgirl, instead of selling my SLW shares I hedged using ZSL. It worked pretty well although not exact. I never really thought silver got overbought, but gold did. Now I'm expecting the early year rally in PMs. May only continue a few weeks but am keeping an eye on big picture. Zerohedge has a great article about how the FED is juicing the market in the afterhours and quite frankly I don't see a serious correction until they stop which could be some time in Q1. Anyway, those are my thoughts and my stance could change in an instant. Good luck as always!
I'm keeping an eye on the dollar and when it failed to hit the upper bollinger band I thought a pull back might be under way. What I'm looking for now is for the dollar to retests its rising 50day ma. If it stops above it that will signal strength and that's the point I will sell or hedge my PM stocks again. If it keeps dropping, well, I'll keep making fiat money.
I made a nice profit today on everything, especially MEA. I am sitting on a large percentage of cash, but I have my eyes on something else either tomorrow or Fri. for a quick possibility.
It is not buy and hold time for me. Then again it hasn't been that way for a while. I miss those days. Sitting on cash seems to be very depreciative to me for some reason.
Woodsgirl.....stick to your guns. I really think that by March, April..ish......we will see a selloff.....though, I don't think metal stocks will come down all that much .....like the last time. I think the world is much smarter about what our government is trying to do, but it may be a good opportunity to re-load!
Could be, but if there is massive deleveraging, for whatever reason, all the stocks get hammered. I don't really know what the catalysts are going to be, but with dry powder, could be some good opportunities. It took so long to claw back my IRA, I just can't take watching it get hammered again, just sucks to try to time the market, but that is what I am doing. Thanks yous guys, for the moral support. You can never time things exactly, but the world seems to be in such a state, that there is sure to be something to make it unravel in the next few months. Just impatiently waiting.
I can tell you all that, here on main street, People are not working, not paying their bills, and things are slow everwhere that I ask. Somewhere down the line, the truth is gonna get out.
I agree, whether it be earnings disappointments, bad economic news or a terror attack, something is going to throw a monkey wrench into this rally, and metals looks to me like a good buy....SLW is holding strong on the 16.60 break today.....should be looking at a HOD by the close and an open in the 17.00s tomorrow
agreed completely. I sold some miners in december and have missed some gains.
the reason to stay cautious here (without a super low cost basis ) I believe is that it is not a given that gold (and silver) are going to go much higher from here.. in the short term.
I'm on a monthly gold and silver bullion buying 'program' and I hold metal as a hedge
but for miners, I am more hesitant to buy at short and med term 'high' levels
all depends what your time horizon and objectives and projections are.
there does seem to be a lot of 3 steps forward and 2 steps back with miners. they can drive ya nuts
I'm sharing your frustration though
If it helps you , there are a number of gold bull newsletter writers that are suggesting caution here