Wednesday, September 15, 2010

Nightline: The Modern Gold Rush

Should you invest in it? Is it in a bubble?

Ha! I think the better question would be: Should you stay in bubblicious dollar-denominated paper investments (someone else's liabilities)?

six minute video at link: (embedding was disabled):

http://www.youtube.com/watch?v=Mz8Ygkx29j8


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3 Comments:

At 9/16/2010 12:11 PM, Blogger BxCapricorn said...

In doing follow-up research, I found that Cramer and Fitzpatrick were "big pimping" silver on 9/7.

http://www.cnbc.com/id/39047751/

so I personally backed off my ZSL buying and it will resume when silver hits $21.50. I wanted to point out chart similarities between Feb 2007 and now, but you can do that yourself at stockcharts.com. I am also hearing that, as then, hedge funds have crowded into this trade for safety reasons. Seems they can already read the FedEx handwriting on the wall, and we're double dipping...very soon. If they have to make some margin calls, don't be surprised if we duplicate the Fall of 2008.

For George Soros fans, he's also said that gold is now bubbilicious.

http://www.cnbc.com/id/39191506

I've been looking for the Prechter gold/silver Elliott Wave count, but found nothing. Shorting the market since Wednesday via TZA (under $30), which I will flip into a short silver at month's end, should it continue to rally.

 
At 9/16/2010 1:03 PM, Blogger BxCapricorn said...

One more thing...before someone new to precious metals decides to pile into it...consider going to a pawn shop, coin dealer, etc. and getting a quote for gold. When you see gold at $1300/ounce on Financial TV, and get quoted far less in the physical world, you'll understand the effect of commissions, handling, and profit margins, on YOUR asset. PMs are no different than something else you buy at the store. Return it and you face a restocking fee. Resell it and you face commissions and handling charges. Hold it, and you have to rent or buy physical protection (lock box, home weaponry, home safes, etc.)

 
At 9/17/2010 10:55 AM, Blogger BxCapricorn said...

Two well defined resistance points. $20.82 and $21 for silver, are being tested today. News of the Ireland's underestimated bond problems arose today. Hard to imagine, I know, that banks would be unable to master the math needed to project future capital requirements. Greece lied. Ireland lied. Did Spain lie? We'll soon find out. Despite the market's rally, I am shorting it. We're at the Bollinger Band pinch point, and something's going to happen one way or the other. High Frequency traders are holding all markets up this quad witching day, 9/17, as they cover option positions. Next week? We'll see...

 

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