Metals Skyrocketing This Morning

Be careful. Right now *all* markets seem to be higher - metals, stocks, bonds, oil. But you're playing a rigged game. The economy is in awful shape and evidence suggests it might be getting worse, or at least getting no better. So the fed is determined to inflate the money supply without the government generally addressing the underlying structural imbalances (and arguably making things worse). This all reminds me of the late 70s, where we saw the same toward the end of the Carter administration.

Yes, there was still money to be made in the 70s, but there was an awful lot of money lost when the Volcker Fed wised up and realized that inflation was the problem, not the solution, and Reagan brought a bold new set of policies into the White House.

Now, granted, the parallels there are somewhat broken, as Bernanke isn't leaving his post any time soon, and we're not going to get another Ronald Reagan for at least two years. But that doesn't mean that the game isn't being rigged by the Fed, who can cause fortunes to be lost as quickly as they cause them to be won.

Wei,I agree with you 100%,unfortunately you can't afford to do nothing with your money with the costs of most things rising,so money in the bank is dead money. I just think that metals are a more worldwide play than stocks(and possibly less rigged than stocks).I play all of these investments day to day and hope to get out in time. I am also buying food that will store for longer periods of time and water supplies as well. I think it is foolish to have your eggs in one basket these days. I also look at metals as a wealth preservation move rather than a real"investment"play ie. make a lot of money from it.I just retired and am trying to protect what I have in this crazy economy.

I don't know if I would call this one the "Big One" or not but it will probably rise until the end of the year when it usually falls back a little. The more money the US prints on a hope and dream that they will be able to pay it back the more expensive everything will become and the more valuable other commodities like Precious metals and oil will become. Inflation does the same thing every time, the money buys less and everything else goes up. I wouldn't doubt if we see 100 dollar a barrel of Oil by the end of the year also, and this is in the time when oil prices usually drop

This is where the rule of "Buy low Sell high" comes into play. Just remember this one thing. For every person who makes money in any type of financial market, be it Stocks, Bonds, Metals, or what ever, someone has to be the loser, and for every seller there must be a buyer.

Since the price today is something like 25.00 if I paid 12.50 a ounce for it then it gets sold. If I happen to buy any at 25.00 then once it hits 50.00 it gets sold. I probably will not buy any for awhile because I have quite a bit that I paid from 11.00 to 20.00 and since I think it may drop at the beginning of the year I may wait until then to spend the money from what I sold today. I started buying silver when it was under 7.00 so you can imagine I have quite a bit of it stashed. I had to hold onto that 7.00 a ounce stash for a pretty long time also because it took years to reach 15.00 and then it dropped back down to 10 and stayed there for awhile after that. It really wasn't until the end of the Bush presidency that it started climbing and when the bailout happened with Obama it hasn't ever came down to the 10-11 level again and probably won't for awhile unless something happens since the Senate has changed hands that stops the madness where everyone feels that if you throw money at the problem it will go away like they are saying all we have to do is print more so we aren't loosing anything and then the problem is for someone else to pick up and worry about

I bought gold at $600 /oz so I am holding tight for a while,but any new purchases will be silver,not gold. I have thought about rhodium but it is a bit high for speculation and I don't know how liquid it would be so I guess I will sit it out.

YAhoooooo.the melting pot for my scrap silver is waiting for me this week-end $$$$$$$

SDcoinguy asks the question 'Buy or Sell?'

My answer is if you NEED the cash for something else, sell, in my case, numismatics. Silver, for instance, is quite a bit over the long term trend line, that is, it appears to be overpriced currently.

Many years ago, I was buying scrap silver coin when the Hunt Brothers tried to corner the market. I did not know that they were attempting to manipulate the market, I just saw the silver price rising. I sold silver too late, made a small profit and have never have been really interested in the metals markets since. And that is in a country (Australia), that has a huge export market in mineral products.

The moral of this experience is that unless you understand the workings of this type of market, (which I do not), then don't speculate. Invest in a area in which most of us in the CCF understand at least a little. Invest in numismatics, you will never loose, if that is your lifetime interest.