Topic: Economy, what's left of
APMEX is now heralding on their front page- "BUY SILVER" and BUY GOLD"
NO ONE that has good sales advertises. Its money wasted.
Why not platinum or palladium? Look at the prices. Platinum is about at gold price, why not invest in platinum, its a valuable industrial and jewelery metal also:
|Gold|| $1,853.10 || $1,855.10 || || $31.10 |
|Silver|| $42.81 || $42.91 || || $2.11 |
|Platinum|| $1,868.00 || $1,878.00 || || $30.30 |
|Palladium|| $742.00 || $747.00 || || ($11.90)|
Why gold and platinum? Only one reason, a place to put money, it has nothing to do with the value of gold, because thats not related to the value of platinum. And this irrationality over gold has not recently started, it happened after the Tech Bubble burst - look at ^DJI vs GLD:
Notice the curve of the Dow stops
around '03, and gold takes off.
Money investors had stopped putting into stocks is now being put into gold.
The key to this observation is what Milton Friedman writes about what constitutes "money." Money is not paper bills, money is a "store for value" or some simple form into which excess labor can be stored. The only other way to store labor is to not do work and thats not productive.
Paper bills, gold, stocks are ALL MONEY.
Paper bills are a type of money, money is not paper bills.
Notice the huge trade volumes in the Dow
Read the USGS statement on gold:
before you lose your ass in it like these people did:
See anything odd about the tall DJI chart above, where the explosive trade volumes do NOT CORRESPOND with price levels falling (no supply and demand in action)?
Correlation with this?? :
"There were some brilliant studies that were revealed at the GATA Conference. One study showed that had you just taken the trade during the Comex hours over the past number of years, I forget if the chart was five years or ten years, but gold has been up dramatically, and Comex action alone, by itself would have netted out an actual decline in the gold price of $500 an ounce based on price changes just during the Comex hours."
But this is baloney:
"Once silver does that (breaks $50), who knows where it’s going to go? All I know is that gold is going a lot higher and the gold/silver ratio is going down and that means silver is going a lot further than gold. So I mean pick your prices, they are going to be dramatically higher for both of them.”"
There is no "gold / silver ratio, because:
1.) that was a presumption from the old bi-metallic standard where one or the other were either currencies or backing currency, and there was some rational, provable link between the two
2.) The current prices prove there is NOT a link, compare gold and silver prices.
I see a double - collapse coming, gold or stocks, as money, will be inflated (both DJI and gold are at irrational highs) and one will tank (maybe for real, and not like the hoax-"crash" of stocks in 2008, where taking a YEAR to sell off is NOT a "crash") and the investors making takes (especially) and anyone fleeing stocks in general, will dump those sales proceeds into the other investment (sell stocks, buy gold, or vice versa) and cause a further hysterical jump in the others price, leading to a sell off there as well.
THERES recipe for a REAL bloodbath, not these mickey- mouse predicitons of dollar OR gold OR stocks taking a dump. \
Then this crap:
All it did was sort of buy two or three more months and now silver is building up power to roar through the $50 all-time high."
"Roar?" Hows silver going from $3x to 50 constitute "roaring?"
Posted by Dave
at 10:55 AM PDT
Updated: Friday, 19 August 2011 2:50 PM PDT