Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (267274)	8/7/2010 9:44:00 PM
From: ayn rand	Respond to of 306849

silver looks like an accident waiting to happen ..................................................... 07 AUGUST 2010 Silver Short: Days of World Production To Cover Certain Commodity Short Positions There is a case to be made that world production is not the only issue, but the available supply is just as important, if not more. In the case of gold, a relatively small portion of supply is consumed, as the bulk of it is held as jewelry and bullion. One might say that if the bullion banks get into a pinch, the central banks can bail them out by 'leasing' gold to them for sale. In fact there is quite a bit of circumstantial evidence that the central banks have been doing this for some time, and would be in serious difficulty if they faced external audits. In the case of silver however, quite a bit of it is used in industrial production. The counter case is that as the price rises, additional material is available in recycling operations from scrap. There is also a significant supply of bullion, but unlike gold it is widely dispersed in ownership, with central banks holding little or none in their reserves. There is a remarkable concentration in the short position in silver and gold. All things considered, silver looks like an accident waiting to happen to a handful of banks who may have crossed up one market too far. jessescrossroadscafe.blogspot.com ................................ Relativity: What is Physical Gold REALLY Worth? the run on the bank. what every bank fears. worse nightmare for the banking industry. interesting: fofoa.blogspot.com

To: Skeeter Bug who wrote (267274)	8/8/2010 5:55:38 PM
From: TH	Read Replies (1) \| Respond to of 306849

SB, We are very much in agreement on many of these points. I admit, I do not know if inflation or deflation comes first, but my guess is that we get a mini QE rally at some point and then deflation. The real inflation comes when the Fed go "all in". I hate holding cash, but right now I want the flexibility to position, even if that means I have a bit less purchasing power for whatever it is I buy. The opposing position, which is to get in now in size, has too much risk of being trapped in positions that might benefit from an inflation wave that is delayed. Timing is everything and gold, cash, and a medium short position make sense to me know. I would like to get clown short, but I can't do it just yet. GT TH