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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (14074)	2/14/2011 1:32:44 PM
From: ayn rand	2 Recommendations Read Replies (1) \| Respond to of 221925

the ten year chart for silver looks pretty impressive to me. review the interactive chart comparing gold and silver over the last 6 months. look at the Au/Ag ratio continuing to fall. perhaps we can compare silver as a commodity, as we look at egypt politically. both are at the first 100 meters of a 26.2 mile marathon. egypt is at the beginning of something new. silver is at the beginning of a long overdue adjustment in nominal as well as inflation adjusted numbers. don't try and look at commodities such as PMs in terms of u.s. government currency units, or other fiat currency units, but rather what 1 oz of physical silver or physical gold has in purchasing power of necessary items such as gas and food in the months and years to come. i can't predict when Ag will break out to new nominal highs, but certainly todays action is very encouraging. but, again, i don't care as i am not a trader. but wthdik? i've been talking to myself for almost 5 years on the GLD thread when i started building a paper position in Au, before i realized that paper may some day become worthless and converted to safer investment vehicles. you can't take advise from guys like me who talk to themselves for years. p.s. i no longer have any position in either GLD or SLV. .................................... "If I was not a student of the markets and hadn't spent years studying gold, I know I would be reluctant to invest in anything near a 25-year high. Buying high is anathema to the whole contrarian investment philosophy of buying cheap and selling dear. But gold, believe it or not, is still a great contrarian investment even at today's quarter-century nominal highs. How is this seemingly absurd thesis possible? The answer is the measuring stick for any investment pricing, the US dollar, has radically changed in the last several decades. A dollar today is worth vastly less than a dollar was 25 years ago, the last time gold closed over $550. Comparing nominal dollar prices of decades past with dollar prices of today is not valid, a horribly flawed apples-to-oranges kind of thing." 5/23/2006 Message 22480559 ..................................... The price of gold is "going much higher," and the $8,000 per ounce forecast he made a couple of years ago is "probably as good a target as any," Turk said. A near-term spike to $2,000 is possible, he added. The price of gold will never again go below $500 an ounce, Turk said. The U.S. government is trying to fund the federal budget deficit without destroying the dollar and trying to raise interest rates to save the dollar without destroying the economy, he said. "I don't think they can do it," he said. 5/28/2006 siliconinvestor.com ............................. from one of my PM email alerts today: Valentine's Day 2011 brings good news for precious metals prices. Today, the U.S. administration submitted their $3.7 TRILLION Budget for fiscal 2011. Now, let's get this straight: Treasury / IRS revenue last fiscal year was (only) $2.16 Trillion. The economy is anything but rosy and exuberant. And, even the Congressional Budge Office is projecting a record spending deficit of $1.5 Trillion this fiscal year. The term ''budget'' must not mean anything to the federal stewards of the National Debt and the U.S. Dollar. Wikipedia defines ''budget'' as: ''A budget [from old French bougette, purse] is a list of all planned expenses and revenues. It is a plan for saving and spending.'' The purpose of budgeting is to enable the actual financial operation to be measured against the forecast. It seems clear that the purse of the United States has no limits, and by any measure, the federal plan for the National Debt and the US Dollar is to borrow into oblivion. The good news is that there is no law against Americans implementing their personal gold standard by owning the precious metals. As of this morning, gold is up $10, silver up $.65, platinum up $25 and palladium up $20. The precious metals have apparently weighed in on the U.S. budget subject.