From the 52 week highs:
Canadian dollar(which I own) down 7%
Aussie Dollar (which I own) down 12.8%
Euro (which, thank god, I don't own) down 18.6%
SLV (which I own big time) down 11%
GLD (ibid) down 5.2%
If you aren't the dollar you're unloved in this panicky market. Gold is actually holding up pretty well compared to everything else in the currency and metal world (and oil for that matter). It just doesn't feel like it. I can honestly say at times like this I miss my mommy and my blue baby blanket.
"."The solution is to own a gold or silver bullion account. See the Sprott (PHYS) fund which is given a 30% price premium, due to integrity."
Eric Sprott isn't a crook , and I do own 500 shares of PHYS, as a lark and just to track it (Marc Faber is a director and I have subsribed to his newsletter for 15 plus years) but...to think it's a superior choice to GLD is to , once again, demonstrate your massive igorance. First, it trades at approx. a 20% premium...not 30% as Jim Bob says. Second, yes you can take delivery on the gold...IF you own the equivalent number of units to 400 oz. of gold and then , of course, you have all of the expenses associated with taking delivery. Hey big hitter...do you have $470,000 lying around to put into PHYS so you can take physical delivery at some point? Forgive me, but I don't picture either you or Barney Fife having that kind of net worth if you sold your gold and silver, your trailers and underwear at a yard sale. Combined. Thank god the cost of living in Mayberry is still low.
"that's true....if everybody liquidated their shares of SLV, just made a run on the fund...."
Bingo...you have just identified my number one concern regarding GLD and SLV (besides the fact they are overly expensive with a .4% expense ratio) relative to physical gold and silver. If there is a panic and everyone trys to sell at the same time, you are going to temporarily get some very screwy pricing. Answer...don't panic.
"Especially guys that hold so damn much physical gold and silver as this Dallas dude was bragging about."
Dude, where's my rug?
"mbbf49a you were given very good advice. "
"Why do that to yourself? Why play right into their fraud? "
Joe , you sound like a sincere , nice guy. Are you aware that there are a lot of people out there far more experienced than you and I, who think you are full of crap and have put their money where there mouth is? Have you listened to the Bill Fleckenstein interview I posted yesterday? Do you know who : James Grant, Bill Fleckenstein, and Marc Faber are? Are you aware that George Soros, Paul Tudor Jones, John Paulson, and the CIIC which is the Chinese State Sovreign Investment Fund all have individually hundreds of millions of dollars in GLD and SLV? Does it occur to you that being smug and arrogant about your limited knowledge of what is really happening at GLD and SLV in the face of these investment pros participation exposes you to the possibility of looking like a total fool? Are you aware that the Custodian of GLD is HSBC, not JP Morgan, and that HSBC is responsible for physically handling all of the gold, not JP Morgan? Morgan is the custodian for the Silver Trust but I suppose, in your world, that both of these banks must be in on the conspiracy as it seems unlikely that if one Trust is engaged in a massive fraud then the other one is not as well.
In any event...as I wrote several times yesterday , I have hundered of thousands of dollars of gold bars, gold coins, and silver coins in safety deposit boxes at...oh,oh...J.P.Morgan Chase...excuse me...I've got to go and check and make sure they are really there.
mbbf49a you were given very good advice. Paper silver with no backing will blow up in your face. That will only cause physical silver to shoot way up in price as people scramble for the real stuff. That's going to happen on you eventually if you stay in SLV. Also, SLV was created to absorb investment demand for silver while not creating a shortage of actual silver inventories, so it hurts the price of silver. They will print up as many worthless SLV shares as you like at no cost to them.
Bottom line, why would you own a silver fund when the custodian of said fund is short over 250 million ounces of silver in the futures market? Why do that to yourself? Why play right into their fraud?
Oh...so your relying on the fabulous Andrew Maguire. What about the one armed man? Aliens in Roswell?
Now Jeff Nielson is certainly an unimpeachable source. Who is he? Do you know? No?...of course not.
Now let me tell you who I am relying on...and they think you are full of more crap than a Christmas goose. James Grant...ever heard of him. I didn't think so. He's every bit as reknowned in the metals and investment world as the fabulous Jeff Nielson. Grant calls it " The loser's excuse". Ever heard of Bill Fleckenstein. Not that he knows who you are but he thinks you're a pathetic joke unworthy of a response. Lucky you...I don't have anything better to do today. How about Marc Faber? No? Well Dr. Faber also happens to think all of this crap is laughable. I know because I actually subscribe to their newsletters instead of relying on a bunch of people who I wouldn't know if I bumped into them on the street. Who is gullible...someone who relies on the judgement of Grant, Fleckenstein, Faber? Someone who has his faith resting in Maguire, Nelson, and several other internet know nothings who have such a low profile literally nobody has ever heard of them?
We shall see. We shall see. If my GLD and SLV blow up I'll kiss your ass. One thing I'm certain of...If they don't, you will never admit that you have no idea of what you are talking about and are simply repeating crap you have read on the internet in a desperate effort to portray yourself as someone worth listening to. Well it isn't working... unless , of course, you are satisfied with an audience of pathetic know nothings as clueless as yourself.
"My point is contained in my first post in this thread. It says, "buy physical silver". That's my point.
A I say " Good for you!" So have I, and I suspect, a good deal more of it than you have. Same for gold.
The alternative point is also very clear....."paper" shares of some silver ETF are going to end up in serious heartache. if you really did some homework in this area, you would understand why."
OK. Why don't you be a mensch and share some of the homework that you have done which convinces you, to the point that you feel qualified to get on a Message Board ( a low threshhold I realize for expertise) and lecture me about the sad fate I am setting myself up for with SLV. This research must be extensive and right at your fingertips to be as all fire sure of yourself as you seem to be. Please provide 4 or 5 references and citations which we can use as a jumping off point to do our homework. I am always ready to learn. Teach me...help me....show me where you are getting this information. I'm waiting.
I hold both silver and silver stocks. I have solid reasons for holding each. The stocks offer the feature of being leveraged with regard to the price movements of silver so they move up and down more sharply than does the metal price. On a percentage return basis, more money can be made (or lost) with silver stocks. So I trade them when possible. Today is a day to buy the stocks IMO. I'll sell them following the next major move up. GLTA SS
Everybody should have 10% of their holdings in metal, if just to see 39 years from now that the buying power of the other assets shrunk to 10% and the silver is the other 90%.
That's exactly what happened 1971-2010. And some think the next shrinking party will be 20 not forty years in the making.