If you think for a minute I buy the governments inflation numbers ... you are seriously mistaken.
Inflation has come down in those numbers only because of the dip in housing and oil, everything else is up.
What do you suppose happens when the government has to unload all those mortgages they bought?
LOL ... Quantitative easing is an experiment that will end badly, my friend. Maybe today ... or five years from now. No matter, the size and enormity of this foolishness will break the bank. It's only a matter of time.
"Wait a minute. Are you saying that Obama is really a Canadian, and not a citizen of the U.S.? Is this another right-wing birther attack, but this time he's a black man from Winnipeg, aninstead of a Muslim from Kenya?"
??? ... ??? That sure wasn't your best rebuttal.Considering the subject matter, I'm surprised someone of your stature would find Canadians, Birthers. Muslims, and Racists in what I wrote.
Did you miss what the loon tag represents?
This is exactly the point I make when labeling the Dem Party and media as loons ... they take the most obscure statements and inject political nonsense like this. Fortunate for you ... you forgot to mention ... Women Hating, Christian, Right Wing, #$%$, Un American, Terrorist, Obstructionist Hispanic Hating, Bible Thumping, Gun Owning .... Assassins.
Give it another look my friend, and come back with something more becoming of your integrity.
This one is marked OT because it is both on topic and off topic. Read on to see why.
I haven't sold any of my miners even though I've stressed more then once the bottom is probably somewhere near $1200.00 an ounce for spot. I haven't sold because I could be wrong, but I'm convinced now more than ever that $1200.00 is the magic number. I'm still not selling and I'm now a big buyer of higher grade investment quality numismatic coins ... silver and gold.
This type of dip has all happened before in the PM's, and if you knew what I know about numismatics, you'd be there as well.
It does not appear that inflation will raise it's ugly head anytime soon due to the incredible boom in oil production within the USA. Who would have thought just a few years ago that our oil reserves would dwarf that of Saudi Arabia ... but this is exactly where we are headed. This in spite of the loon party pushing alternative fuels down our throats for the past 30 years, and we're no closer to a solution today then we were then.
Obama continues to take credit for this windfall in oil production that has occurred the last couple of years, when it was actually Bush Jr who issued all those exploration and production permits on private lands 12 years ago. The Loons fought it (including Obama) tooth and nail saying it would be 10 years before anything could be produced with those permits and that alternatives were the future ... and here we are.
So ... what effect will this have on gold down the road? I have no idea as this really is unprecedented. I mean, when was the last time the USA was a major exporter of crude oil? That one is already being applied for with the Energy Department.
When has a nation been so deeply in debt and produced so much "easing" to stimulate the economy? LOL
It's all unprecedented and the times are going to get very interesting ... and my money is on precious metals.
Place yer bets.
Written by "Seeking Alpha" and it's titled ...
"Low Silver Prices Will Dull Silver Wheaton's Earnings"
LOL ... no #$%$?
What a senseless no nothing thing for a paid writer to say in a headline! I haven't read it and nor will I.
Here's a scoop for you Seeking Obscurity Idiots ... "Gold prices will dull Goldcorp Earnings" ... and every other miner as well.
Why not say "Low Silver Prices Will Dull Silver Miners Earnings"
I mean ...what's with the focus on SLW? Maybe the fool has a vested interest in the price of SLW going down, and if not he'll have to take credit for the dumbest statement that rag has produced in a long time.
The only thing I can think of that would equal this ineptness, would be taking it seriously enough to pay good money to subscribe to such nonsense.
Are you kidding me? You don't believe politics and more specifically governments ruled by Islamic fruitcakes would influence the price of gold? If that is true, you're playing in the wrong neighborhood.
Not that these issues only effect precious metals ... maybe you should take a hiatus on any investing until you get a grasp on what drives markets. lol.
As far as bogs description of Muslims trying to explaim the actions of Islamist on American TV, I'll take it a little further.
There is no such thing as a good Islamist. Those that portray their moderate practices as sympathetic to the USA sure looked a bit extreme on 9/11 dancing and celebrating in streets all over the world. Such jubilation from those that expect we'll swallow their moderate BS and selling their phoney distorted description that Islam is a loving and caring religion. LOL.
It is filth arisen from a cesspool of excrement with such a stench so indescribable that a real human being would in no way mistake it for goodness. It is evil, and it is in need of expungement if mankind expects to continue on.
Do not try to sell the murderous unforgiving teachings of Muhammad as a loving and caring prophet, he is nothing more than Satans' child here to gather the souls of all he can deceive. Islam is death and destruction with extreme cruelty as you could never imagine ... period!
Hows that for calling a bottom? I wish all were that easy, but when anything drops this much in such a short time ... knee jerk mentality is at work. In addition, when every talking head is telling you the bull is over in any segment of the market, PM's or otherwise, and you can find absolutely nothing to indicate fundamentals have changed ... it's time to buy and buy I did!
I sure hope you did too.
I've had a bit of cash sitting on the sidelines for a long time now, and I'm going in totally tomorrow. I.m referring to my Roth IRA which unfortunately has limited funds. With my unrestricted funds, I'll likely be 100% physical and as you already know ... my preference is in investment grade numismatics. Unfortunately, our finer government does not allow numismatics in IRA's ... only bullion.
There are a few coins currently at auction with Heritage next week that only come up every 5 to 10 years. I'm going after two with a vengeance and and I don't much care if I overpay. These will not be for resale as most I buy are, but rather to put away for that third leg you speak of. During the 1980 bubble in PM's, those type investments went ballistic more so than the miners and bullion. I'm poised and ready and the most beautiful part of it that I'll have ownership of a beautiful collectable very very few can claim possession of as well.
Buy gold and silver ... be happy.
Total hogwash. I enjoy reading sewells posts and respect his opinions. Calling him the only honest poster here though ... is hogwash and then some. Most people you find on any of these message boards seem to judge others in accordance with their own convictions in a given investment. That's total hogwash too.
There are some idiots that show up with nothing more than verbage intentionally delivered with no other purpose than to offend the investors in any given stock. Then there are the pumpers who just offer a bit of cheer leading absent substance. You can ignore both of these because there is nothing learned.
Then again, there are times a poster will input an unpopular opinion backed up with substance, and whether I agree or disagree with them is irrelevant, there is often knowledge in their words. It doesn't matter what side of the coin this person represents when the message is presented with substance, and it matters significantly if you are capable of recognizing one of substance from one of gibberish and psychobabble.
I read most posts sewells inputs here and sometimes I agree and sometimes I don't. I've even had a spat or two with him and can't say I've ever felt he was an idiot undeserving my attention. To the contrary, I usually respect the explanation he includes in his words to validate his conclusions. For this reason, he deserves my respect even when I don't agree with him.
To say he is the only honest poster here ... speaks more of you than him.
The entire PM segment of the market is so oversold, you could make a list of 30 to 50 miners that have at least promising fundamentals ... and get out the darts. Long or short term, you'll hit a winner every time. Both SLW and RBY are very high on this list, and physical is even more oversold.
I think there are a lot of people here who are losing or have lost money on RBY, and emotions tend to run a bit wild under these circumstances. I too am angry at management for their constant PR flubs. Postponing important updates and neglecting to even attempt to promote the stock with any form of PR, will kill the price every time, and they should know better.
I can only pray they are much better miners than they are promoters. For the moment, I'll just hang on and give them benefit of the doubt that it is a better strategy to release all information with the PEA. I'm also convinced the downside risk is minimal while the upside potential is unknown.
"Prepare for a very rough next few months"
Would this be RBY months or actual calender months?
Whew ... that was a bit strong! As you know, I'm not Christian either, but I very strongly defend not only their right to exist, but their right of free speech as well.
I've read over and over the post you took offense to, and I just don't see the attack you took offense to as being there ...???
If you feel comfortable blasting a post simply because it is christian in nature and then excusing it as a personal attack ... you have one hell of a lengthy road to trudge,
It ain't there bog,and this is one time you should take what's good ... and leave the rest.
I think they call that a bull run when gold disconnects from the dollar and rises on it's own merits ... or short covering...lol. While you and I differ on the longevity of the 13 yr old gold ascent, I'll go ahead and concede that today's little pop against the dollar is nothing more than short covering. Those type of spikes are normally short lived and it's way too soon to call this a resurgence of the bulls.
It's also way too soon to expect that the Euro Zone problems have stirred enough panic to begin a rush to gold ... although that is in my opinion ... inevitable. There will be a run on banks in Cyprus that will spread to the other Euro Zone Nations, and the Euro will crash. It will not be Cyprus or Greece that exits the Euro Zone ... it will be Germany. I have been predicting since last May, that Germany will exit the Euro Zone and the crash and burn of the Euro will all happen in 2013.
The first domino has already fallen against the next and I remain convinced the second domino will not stand fast. The trust in banks holding the savings placed with them anywhere in the Euro Zone has evaporated. A person that is a citizen of any Euro Zone Nation knows that what happened in Cyprus opens the door for it to repeat anywhere within this block of Nations. Not good.
After comments by Ben Bernanke responding to a question as to the possibility of a Cyprus style solution being implemented here in the USA, he replied, "not likely".
I wonder if he really meant to say ... I sure wish I'd thought of that before now. lol.
Stagflation is here and it is about to be put on steroids.
I'll have to respond to you last post out of the thread since Yahoo doesn't seem to realize there's a problem in this new system that doesn't allow a reply to the last post in a thread ...or doesn't care.
For the record ... Jim Sinclair is an absolute over the edge loon who couldn't predict his own bowel movement much less something as sophisticated as the historic cycles of precious metals. His followers don;t seem to grasp that anyone can make predictions for decades ... and sooner or later you;ll be right. Never mind the serious losses incurred when following such nonsense for all those years, and halleluiah when that one in a hundred proves accurate.
Sinclair is an idiot.
In response to your reply, I have no problem understanding why you hold such beliefs. I came up at a time during the Carter years and witnessed first hand the never before seen phenomena of stagflation. Prior to this, gold had experienced a healthy run and then went into a decline. It lost 40% of it's value in the 15th year of it's ascent. Sound familiar?. What happened next is that everyone ran to anything that paid ... including the dollar. Gold was another choice and it rebounded beyond it's losses for the next five years and continued to an all time high. Those that chose the dollar received a retuen in that last year of around 18%. Those that chose gold received 100% returns and thos who chose miners received anywhere from 100% to 600%.
The average was 250% for those in the miners ,,, and that was just in the last year.
I can't say with absolute certainty that those days of excesses in the PM's will repeat, but one thing that is certain, stagflation will return and It's already here. We would need a POG of $1200.00 per once to equal that 40% drop in the Carter years,,, and I pray this time it only takes a drop of 30% or less. (around $1538.00)
We have about seven more years historically for this gold cycle to end ... and a whole lot can happen in the meantime.
When folks realize that socialist economics allow for the confiscation of deposited savings within banks trusted to be guaranteed and insured by the very governments that instill the trust, watch what happens to the POG. It is now only a matter of time.
Wall street is now breathing a sigh of relief, while nothing has been done to correct the cause of this failure while everything sacred has been violated that allows their existence in the first place.
There will indeed be a rush to withdraw deposits from the Cyprys Banking institutions resulting from this insult to trust and It will not be limited to Cyprus nor will it be limited to larger deposits. Oviuosly, the size of bank accounts doesn't matter as it is the larger deposits that give what little solvency exists to these institutions. .
There will be an exodus of deposits within the banks of the Euro nations. Why in the world would anyone trust any of those banks now? Large bank failures are now imminent
" but with capitalistic institutions like the ECB, IMF, and the German government in charge who would you expect to take the loss for the banker's reckless gambling?"
Appreciate your input and I agree with all except for the above statement. If it were anyone but you, I'd call the author dumb.
lol ... with you it is dumb like a fox!
I am certain you are aware that the Capitalist theory does not bailout those who abuse the system or are too inept to profit in the free enterprise system. With Capitalism, excesses are punished and bailouts are something completely absent in theory and practice without exception.
What you are describing is unique to a socialist system that recognizes "too big to fail." A system that depends on fiat currencies, government regulation, and constant tweaking to last more than a few decades or so.
The ECB and the German government are both so socialist I'm surprised you though no one would notice the Capitalist tag. lol.
Today's economies are trying to mix both socialism and capitalism is search of the perfect system.
What we now have learned is that there is no perfect system... and never will be.
My initial gut feeling is that gold in the short term will hold it's own and probably rise significantly shortly thereafter. Obviously, gold stocks are much more vulnerable to knee jerk market wide sell offs, which should definitely be viewed as buying opportunities even at the earliest and most modest dips. There are no words I can convey that adequately describe the damage and consequences that a violation of trust will produce in the banking industry, when it is also trumped by a lack of trust in the institution that guarantees the trust ... the Government itself.
I find it curious that a person as intelligent as yourself would defend or take offense out of political ideology, to comments on socialism when the point being made is simply a non political economic statement focusing on the total hypocrissey of it all. How in the heck can a Government that has spent every penny entrusted to them for safe keeping in mandated retirement programs ... possibly point an accusing finger at a bank who has done the exact same thing?
All of us can point accusing fingers at whoever we choose out of ideology ... but the point I wish to make would be who is the bigger fool? Is it the Republican ... the Democrat? ... or is it the idiot that trusted a government to safeguard their funds?
You can take offense to this as you wish, but I can guarantee you it was not a Capitalistic government that produced this mess .At the same time, I can say even a Capitalistic Government would have produced exactly the same thing if also entrusted with the magnitude of funds involved. The only difference is that the Capitalistic system would have crashed it ... long long long ... before now.
The beauty of Capitalism, is that it seriously punishes economic excesses ... absent any government regulation or intervention at all.
Statements like this in the USA as well as Eurozone expectations that confiscation of deposits are reasonable solutions, change this ballgame big time in my opinion. They sure don't go unnoticed by the informed investing public and the consequences are not at this time clear. However, the trust in fractional banking I believe have been very seriously damaged ... if not completely destroyed. Not to mention the insolvent Governments overseeing them.
I believe the rush to safety this time will more favor gold and silver than the US dollar, which has been the customary safe haven of the past under circumstances such as these.
The trust is gone.
What interesting times indeed. I'm going to stick my neck out on this one and predict the POG will buck the norm this time. In times past whenever there is financial turmoil in the banking industry, the knee jerk reaction has been to sell everything including PM's and go to cash.
While I rarely do the " this time it's different" argument in justifying an abnormal market prediction when past history makes what should happen so obvious ... (I do remember the "this time it's different" during during the tech boom just before the bust) ...
I must say that ..."This time it really is different".
What is different is that I cannot recall anytime in my life when a government in peaceful times has even suggested confiscation of depositors savings. Sure, there have been Bank failures in the past when depositors lost money in accounts that were in excess of the federally insured limits, but to see this likely possibility below those limits is something I don't ever recall. If I'm mistaken in saying this is unprecedented, I hope someone will respond and correct me with specific information.
The idea to raid the savings of citizens to compensate the excesses of fractional banking and socialist policy ... is a negative that will fester in the minds of ordinary citizens from now to eternity. It does not matter if the idea is actually implemented, the fact that it was ever seriously considered is damage enough to destroy the trust. If there is one crucial component that is absolutely necessary for the very existence of fractional banking ... it would be trust.
Today, Ben Bernanke was asked by a reporter if the Cyprus solution of taxing deposits would ever be considered in the USA,
He responded with ... "that is very unlikely". Ouch!!!!
Wrong answer! Here was our federal reserve chairman with a chance to nip it in the bud and he says " very unlikely" ??? LOL
The correct answer during times like this would be ... Not a chance! ... even if it is a lie.