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Post by unlawflcombatnt on Jan 23, 2008 22:56:34 GMT -6
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Post by jeffolie on Jan 26, 2008 17:12:14 GMT -6
Silver coins are my poison. I am heavily invested in collectible Morgans and Peace Dollars.
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Post by unlawflcombatnt on Jan 31, 2008 4:59:18 GMT -6
Silver seems to move a little faster than any of the other precious metals, including gold. If gold goes up +1.5%, silver will often go up +2%. But the same is true on the downside as well. Silver falls faster than the other precious metals.
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jaded
New Member
Posts: 3
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Post by jaded on Jan 31, 2008 8:16:08 GMT -6
Although I read the threads here with anticipation and eagerness to learn, I'm still fairly new to the PM investment. Started buying around $350/oz. How much more life do you guys think this run-up has? Would it be wise to take the profit now, or keep holding on?
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Post by unlawflcombatnt on Jan 31, 2008 19:05:10 GMT -6
I would hold on to it, if I were you. The Fed has only just begun inflating our money supply. The same is true of Congress. They've only just begun to borrow and spend, causing even more inflation. Meanwhile, British and European bankers are doing the same thing. The Japanese may inflate as well, though their interest rates are almost zero at present, giving them little room to lower rates further.
That being said, however, I would still pay attention to current gold and other precious metal prices. There will be short-term fluctuations on a day-to-day, and even week-to-week basis.
In my opinion, it is worthwhile to monitor other commodity prices as well, like wheat, oil, and soybeans—to see if other prices are going up as well. If prices are rising due to Central banks' inflation of the world money supply, prices should rise on commodities as well. And if commodities are not rising in tandem with precious metals, then something other than inflation is at work.
Undoubtedly, some portion of precious metals' recent price increases are due to speculation. It's difficult, however, to determine how much is due to inflation, and how much is due to speculation.
One financial analyst (who's name I can't remember at present) has emphasized the parallel between gold and oil price increases—hinting that this may be a method of separating gold (and precious metal speculation) from inflation.
Also keep in mind that if Central banks are unsuccessful at causing inflation, depite rate cuts, then gold prices are very likely to fall. And the closer the Fed and Central banks get to a 0% interest rate, the less ability they have to inflate the money supply. When and if rates start approaching 0, it's time to consider selling.
My recommendation is to watch oil, wheat, soybean, silver, and platinum prices. If they continue rising, gold will probably continue rising. (That's the situation at present.) As long as that trend continues, I'd hold on to the gold.
In contrast, if gold is rising, but everything else is falling (especially silver & platinum), it's time to consider selling your gold. An unparalled increase in gold price suggests speculation, not inflation.
At the risk of sounding conspiratorial, keep an ear tuned to any government or public "chatter" about gold confiscation. It did happen once before.
And with the current extra-legal activities of our government, nothing is suprising anymore.
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