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VERY interesting read:
<!-- m --><a class="postlink" href="http://www.zerohedge.com/article/gld-overdue-buy-two-hundred-tons-actual-gold">http://www.zerohedge.com/article/gld-ov ... ctual-gold</a><!-- m -->
"One of the completely unmentioned side effects of the recent surge in gold prices, has been the fact that one of the biggest holders of gold, the GLD ETF (presumably physical, even though it is kept in the cellars of HSBC in London, one of the two banks recently charged with a RICO suit for precious metal price manipulation) which as of close today held 1,294 tonnes, has not really bought any gold in over 5 months. The issue is that GLD's gold actual holdings, which feed right into its NAV, have been flat since June, peaking at 1,320.44 tonnes on June 29, and flat-lining and even declining through today. Since then, however, gold spot has risen by 14%. As the chart below shows, GLD tends to reindex its NAV in spurts, buying up gold during specific periods when gold goes up, notably in March of 2009, and between May and June of 2010. As of today, the trust's NAV per GLD in gold is at an all time low of 97.67. The bottom line is that GLD is now long overdue to replenish its actual gold holdings, net of redemptions. Assuming that GLD will increase its holdings in line with prior accumulations, when gold price surged, the ETF may soon be due to buy about 200 tonnes of gold. Should that happen, GLD will further increase its distance to 6th sovereign holder of gold, China, which as of September 2010 held "just" 1,040 tonnes. As to what would happen to the price gold if it is made known that there is a buyer for 200 tonnes of gold, we leave to our readers' imagination."
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Wow its a gold bubble fueled by ETF's that are forced to buy more gold because people are buying the ETF.
What will happen when no one wants to buy all that gold thats stuffed in the basement?
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Not a bubble if it never pops. 
There are actually a lot of buyers - central banks are diversifying into gold as the dollar continues to sink. China has a LOT of money available to buy with...
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Vanraw Wrote:Wow its a gold bubble fueled by ETF's that are forced to buy more gold because people are buying the ETF.
What will happen when no one wants to buy all that gold thats stuffed in the basement?
governments have held gold value in high regard for about 3000 years. Why do you think 2010 should be different?
SLV up 20% since I bought it 10 days ago. :mrgreen: Really wish I did an option on it now instead of bought.
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You gave it the kiss of death. Both gold and silver got hammered this afternoon...
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I dont know guys, Im a supply and demand kinda guy. No ones currency is based on Gold anymore. There is an over supply of the stuff. The only demand is fear.
You guys are right it will probabaly go up and double, but at some point reality has to check in.
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Certainly the last few days have been brutal ($80 or so drop), but I'm not overly concerned yet. Pullbacks are healthy.
Of course, if the analysts are right who say the "true" value of gold, without the speculation, is $800 or so...it's not going to be much fun...
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yep on the 800. But then you have other "speculators that are saying 4000....
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Breand Wrote:SLV up 20% since I bought it 10 days ago. :mrgreen: Really wish I did an option on it now instead of bought. Hope you still have that SLV, Breand! $30 - wow.
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Grieve Wrote:Breand Wrote:SLV up 20% since I bought it 10 days ago. :mrgreen: Really wish I did an option on it now instead of bought. Hope you still have that SLV, Breand! $30 - wow.
Yea CNBC was talking about a huge short squeeeeeze.
I got tell you guys, all of this looks like a huge commodity bubble in the making. Its like all the other bubbles before it. People are just blindly dumping money into it to make money on money with no real value growth.
How long and how high will the bubble go before it pops? 1 year? 2 years?
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Oh I still have it...wish I had bought more.
I dunno how much this is REALLY affecting things, but Zero Hedge has been following the whole Silver saga. JP Morgan and HSBC are being sued over manipulating the price of silver by taking out massive shorts in it. In response Max Keiser has started a movement to get everyone to buy physical silver so that the price skyrockets and JP Morgan is forced to pay out their shorts and bankrupt themselves. It all sounds a little strange but it does seem to be affecting the market, particularly the suing part as people are realizing that silver is vastly underpriced because of the two banks. We shall see.
Here's an article on it:
<!-- m --><a class="postlink" href="http://www.economicvoice.com/max-keiser-tells-the-world-to-crash-jp-morgan-buy-silver/50014046#ixzz15MNhRZGX">http://www.economicvoice.com/max-keiser ... z15MNhRZGX</a><!-- m -->
Another article about how insanely underpriced silver because of JP Morgan despite it actually having a lot of real world uses that gold does not have.
<!-- m --><a class="postlink" href="http://www.tradingmarkets.com/news/press-release/hbc_silver-short-position-could-cost-jp-morgan-billions-in-losses-says-nia-1264751.html">http://www.tradingmarkets.com/news/pres ... 64751.html</a><!-- m -->
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Vanraw Wrote:Grieve Wrote:Breand Wrote:SLV up 20% since I bought it 10 days ago. :mrgreen: Really wish I did an option on it now instead of bought. Hope you still have that SLV, Breand! $30 - wow.
Yea CNBC was talking about a huge short squeeeeeze.
I got tell you guys, all of this looks like a huge commodity bubble in the making. Its like all the other bubbles before it. People are just blindly dumping money into it to make money on money with no real value growth.
How long and how high will the bubble go before it pops? 1 year? 2 years?
Silver isn't a bubble...gold might be.
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I actually sold my main gold position today. I think gold will continue to rise until the Fed starts raising rates, but I feel like a correction has to come fairly soon.
If you believe Goldman Sachs are the smartest guys in the room, though (and let's face it, they are right more often than not), next year is going to be great for stocks AND commodities.
http://finance.yahoo.com/news/Goldman-Sa...8.html?x=0
25% upside on the stock market...gold to around $1700...oil to $105...definitely seems like a time to have as much money in the market as possible. It's not like you are going to make anything by socking it away in the bank...
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The face of the Buy Silver movement gets his own coin...funny stuff:
<!-- m --><a class="postlink" href="http://www.silverkeiser.com/">http://www.silverkeiser.com/</a><!-- m -->
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Gold and silver getting taken out to the woodshed today. I was temped to get in (maybe to Silver Wheaton), but now I'm not so sure this is just a correction. I think, with all the bullish forecasts for 2011, people are rotating from commodities to stocks.
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Interesting article:
<!-- m --><a class="postlink" href="http://www.zerohedge.com/article/meet-man-behind-liquidating-hedge-fund-blew-gold-market">http://www.zerohedge.com/article/meet-m ... old-market</a><!-- m -->
recent drop in gold was attributed to one small hedge fund selling off a huge position in gold, and dumbass day traders who just see a price drop and panic, drove it even further. Expect a nice jump back up.
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The fun and games in Eygpt is certainly helping it today, not sure if it will last if that situation calms down, though.
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interesting read. china demand is skyrocketing.
<!-- m --><a class="postlink" href="http://www.zerohedge.com/article/eric-sprott-gold-tsunami">http://www.zerohedge.com/article/eric-s ... ld-tsunami</a><!-- m -->
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Silver broke $34 today, Gold getting close to all time highs, Oil up over $5 today, and the US market isnt even open.
Lots of talk about the Comex going to be squeezed and the price of Silver to go up substantially in the next couple weeks.
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What will happen when the feds stop stuffing money into commodities via QE2 and the prices drop to reality?
Bub bub bubble
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QE3 will come along...
The debt ceiling will be raised....
States and municipalities will start to default ...
It is going to be very hard to unwind the stimulus as is, inflation is creeping in everywhere now. Its not like back in the 80s when to stop inflation Volker raised interest rates. Variable rate mortgages and interest on the debt pretty much sealed that option off.
$50 Silver by June
$1600 Gold to match.
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$50 silver by June? Hmm, I don't know about that. But if it did...a $45 SLV July call bought now for $38, would likely be worth around $800 by June with SLV at $50. Buy 10 now for under $400, and that would be a nice $8,000 payday...
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I have a bunch of April SLV options right now, (around 20) I am up so far in the last 2 weeks 55%, when I sell them (and I think Silver will still go up) then I will look at getting some AGQ, although I will wait for a dip to get into that. Investing primarily in SLV has allowed me to double my money since Dec. (and thats including Jan which hurt)
I also have a bunch of shares in Cream Minerals a small cap metal company.. 24% so far return
Metals are doing very well for me right now, and demand for them is only increasing right now. The Canadian Mint is reporting they cant obtain enough silver to keep up with 1/2 the demand right now. The US Mint sold more Silver in Jan then they ever had before in a month.
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<!-- m --><a class="postlink" href="http://is.gd/3zNWcX">http://is.gd/3zNWcX</a><!-- m -->
U.S. Mint has no bullion available to make Silver Eagles.
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