Bilow,
Well, looks like we may get our chance to buy HL at a guaranteed good price. Closed down 5/8 at 5 1/2 on Friday, it held real well till late in the afternoon and the stock has recently been showing nice strength until this gold sale debacle. Looks like my trader friend was right about a gold sale, although the Swiss, don't exactly fit the bill (he thought German) that's close geographically <grin>. Hope that another CB sale's not coming, he did say there could be more than one! Accordingly, I will average down with HL in stages, I would like to keep my average price as low as possible to maximize profits but I am aware that HL may not stay down long. Silver inventories are under two years consumption, a silver corner attempt will probably be made in 98 by some enterprising funds (like they ran PL/PA this year), digital cameras are not a threat till 1 1/2 to 2 years out minimum, digital is no threat in third world for years, traders are getting bullish on silver, all IMHO. And an opinion mostly culled from others, I freely admit. Also, there are no CB sales of silver that I am aware of!
The problems of gold may hold silver back, if only because people relate the two, but gold will not stay down forever either, after the EMU gets going in the spring there are possibilities for fireworks!
All depends on how things work out and with the currency problems in Asia, nervous markets it is only a matter of time for gold to break its bonds.
It is reported via many comments of business commentators that gold did not react to this bad news or that and so gold is dead. Gold is not dead! It is just that only the devoted goldbugs are buying it right now because the whole world has such a supreme confidence in fiat currency, paper money. They want to make that money on the stockmarket and few hedge with gold when derivatives are more profitable. But the amount of paper assets in the world so outweighs the amount of gold (60 Trillion derivatives, US equities = more than US GDP, etc) available, 60% of which is in private hands, that any movement to hard assets will move gold up like a rocket. Hard to imagine right now perhaps, but look out in the future. Still, I am not a dyed in the wool goldbug, have never been one till this year. I just believe that this things will change and like your handle, I too like to buy low!
What do you think, am I preaching to the choir here? Would be grateful for all opinions.
Best regards,
Roebear |
